Twelve Month Pro Forma Budgeted Income Statement:

Kristin Raina Interior Designs has decided to request a bank loan to expand her business and the lender has asked for a one-year projection of revenue and expenses. In order to request the loan, you will need to create a Pro Forma one year budgeted income statement broken down over 12 months. You will need to take a look at the actual ending financial statements for February, March and April and use this data to help create the forecast for the next fiscal year of business.

For this project, you can assume that the company is expanding the business for any reason, however below are some possible options for seeking out a loan. You can use one of these options or create a unique creative alternative for expansion in building the one-year pro forma budgeted income statement:

Option 1:Kristin has decided to do a build out of a leased location.

Option 2:Kristin has decided to purchase a physical location for her business.

Option3:Acombinationoftheaboveoranyothercreativelyuniqueexpansion/companygrowthidea(consideranewproductornewproductlineforexample).

Attached is an "EXAMPLE" template that can be used, "20161028175249profarm" configurations, and the three months balance and P&L statements to help.

Pro Forma Income Statement Sales COGS Gross profit April May June July August SeptemberOctober November 15,174.92 16,692.41 18,362 20,197.82 22,217.60 24,439.36 26,883.30 29,571.63 3,190.00 3,509.00 3,859.90 4,245.89 4,670.48 5,137.53 5,651.28 6,216.41 11,984.92 13,183.41 14,501.751 15,951.93 17,547.12 19,301.83 21,232.02 23,355.22 Total Expenses EBIT Intrest Net Income 2,688.00 2,822 2,963.52 3,111.70 3,267 3,430.64 3,602.18 3,782.29 9,296.92 10,361.01 11,538.23 12,840.23 14,279.84 15,871.19 17,629.84 19,572.93 _ _ _ _ _ _ 9,296.92 10,361.01 11,538.23 12,840.23 14,279.84 15,871.19 17,629.84 19,572.93 Assumptions 1. Average growth of sales and COGS every month after March is 10% 2. Average growth of total expenses every month after March is 5% December January February March 32,528.79 35,781.67 39,359.84 43,295.82 6,838.05 7,521.86 8,274.05 9,101.46 25,690.74 28,259.81 31,085.79 34,194.36 3,971.40 4,169.97 4,378.47 4,597.40 21,719.34 24,089.84 26,707.32 29,596.96 21,719.34 24,089.84 26,707.32 29,596.96 Kristin Raina Interior Design 12-Month Pro Forma Income Statement For the Years 2017 - 2018 REVENUE Gross Sales Less sales returns and allowances Net Sales COST OF SALES Beginning inventory Add: Stock Purchases Total Goods Available for Sale Less Stock Inventory- Year End Cost of Goods Sold Gross Profit/(Loss) OPERATING EXPENSES Salaries and Wages Employee Benefits Insurance Utilities Office Supplies Repairs & Maintenance l Taxes, Licenses & Reg. Fees Miscellaneous Depreciation & Amortization Total Operating Expenses Net Income Before Taxes Taxes on Income Net Income After Taxes 2017 February 2017 March 2017 April 2017 May 2017 June $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2017 July 2017 August 2017 September 2017 October 2017 November $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2017 December 2018 January 2018 February 2018 March 2018 April $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Feb 28, 17 ASSETS Current Assets Checking/Savings 1010 Cash - Operating Total Checking/Savings 47,400.00 47,400.00 Accounts Receivable 1200 Accounts Receivable Total Accounts Receivable 1,540.00 1,540.00 Other Current Assets 1300 Design Supplies 200.00 1305 Office Supplies 250.00 1410 Prepaid Advertising 300.00 1420 Prepaid Insurance Total Other Current Assets Total Current Assets 2,400.00 3,150.00 52,090.00 Fixed Assets 1700 Furniture 1725 Furniture, Cost 1750 Accum. Dep., Furniture. Total 1700 Furniture 12,000.00 -100.00 11,900.00 1800 Computers 1825 Computers, Cost 1850 Accum. Dep., Computers Total 1800 Computers Total Fixed Assets TOTAL ASSETS 3,600.00 -60.00 3,540.00 15,440.00 67,530.00 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2010 Accounts Payable Total Accounts Payable 6,250.00 6,250.00 Other Current Liabilities 2020 Notes Payable 2030 Interest Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities 7,000.00 50.00 7,050.00 13,300.00 13,300.00 Equity 3010 Kristin Raina, Capital 3020 Kristin Raina, Drawings 50,000.00 -400.00 Net Income 4,630.00 Total Equity TOTAL LIABILITIES & EQUITY 54,230.00 67,530.00 Feb 17 Ordinary Income/Expense Income 4010 Design Services 4,740.00 4020 Decorating Services 2,500.00 Total Income 7,240.00 Expense 6020 Accounting Expense 300.00 6050 Advertising Expense 100.00 6175 Deprec. Exp., Furniture 100.00 6185 Deprec. Exp., Computers 60.00 6200 Insurance Expense 200.00 6300 Janitorial Expenses 125.00 6325 Office Supplies Expense 150.00 6400 Rent Expense 800.00 6450 Telephone Expense 275.00 6500 Utilities Expense 450.00 Total Expense Net Ordinary Income 2,560.00 4,680.00 Other Income/Expense Other Expense 7000 Interest Expense Total Other Expense Net Other Income Net Income 50.00 50.00 -50.00 4,630.00 Mar 31, 17 ASSETS Current Assets Checking/Savings 1010 Cash - Operating Total Checking/Savings 50,855.38 50,855.38 Accounts Receivable 1200 Accounts Receivable Total Accounts Receivable 1,540.00 1,540.00 Other Current Assets 1260 Inventory of Carpets 800.00 1265 Inventory of Draperies 1,000.00 1270 Inventory of Lamps 1,000.00 1275 Inventory of Mirrors 900.00 1300 Design Supplies 200.00 1305 Office Supplies 250.00 1410 Prepaid Advertising 500.00 1420 Prepaid Insurance Total Other Current Assets Total Current Assets 2,200.00 6,850.00 59,245.38 Fixed Assets 1700 Furniture 1725 Furniture, Cost 1750 Accum. Dep., Furniture Total 1700 Furniture 12,000.00 -100.00 11,900.00 1800 Computers 1825 Computers, Cost 1850 Accum. Dep., Computers Total 1800 Computers Total Fixed Assets TOTAL ASSETS 3,600.00 -60.00 3,540.00 15,440.00 74,685.38 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2010 Accounts Payable Total Accounts Payable 9,750.00 9,750.00 Other Current Liabilities 2020 Notes Payable 2030 Interest Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities 7,000.00 50.00 7,050.00 16,800.00 16,800.00 Equity 3010 Kristin Raina, Capital 3020 Kristin Raina, Drawings Net Income Total Equity 50,000.00 -400.00 8,285.38 57,885.38 TOTAL LIABILITIES & EQUITY 74,685.38 Mar 17 Ordinary Income/Expense Income 4010 Design Services 240.00 4020 Decorating Services 900.00 4060 Sale of Carpets 2,400.00 4065 Sale of Draperies 1,000.00 4070 Sale of Lamps 1,200.00 4075 Sale of Mirrors 900.00 4100 Sales Discounts -84.62 Total Income 6,555.38 Cost of Goods Sold 5060 Cost of Carpets Sold 1,200.00 5065 Cost of Draperies Sold 500.00 5070 Cost of Lamps Sold 600.00 5075 Cost of Mirrors Sold 450.00 5900 Inventory Adjustment 150.00 Total COGS Gross Profit Net Ordinary Income Net Income 2,900.00 3,655.38 3,655.38 3,655.38 Apr 30, 17 ASSETS Current Assets Checking/Savings 1010 Cash - Operating Total Checking/Savings 50,855.38 50,855.38 Accounts Receivable 1200 Accounts Receivable Total Accounts Receivable 1,540.00 1,540.00 Other Current Assets 1260 Inventory of Carpets 800.00 1265 Inventory of Draperies 1,000.00 1270 Inventory of Lamps 1,000.00 1275 Inventory of Mirrors 900.00 1300 Design Supplies 200.00 1305 Office Supplies 250.00 1410 Prepaid Advertising 500.00 1420 Prepaid Insurance Total Other Current Assets Total Current Assets 2,200.00 6,850.00 59,245.38 Fixed Assets 1700 Furniture 1725 Furniture, Cost 1750 Accum. Dep., Furniture Total 1700 Furniture 12,000.00 -100.00 11,900.00 1800 Computers 1825 Computers, Cost 1850 Accum. Dep., Computers Total 1800 Computers Total Fixed Assets TOTAL ASSETS 3,600.00 -60.00 3,540.00 15,440.00 74,685.38 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2010 Accounts Payable Total Accounts Payable 9,750.00 9,750.00 Other Current Liabilities 2020 Notes Payable 2030 Interest Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities 7,000.00 50.00 7,050.00 16,800.00 16,800.00 Equity 3010 Kristin Raina, Capital 3020 Kristin Raina, Drawings Net Income Total Equity 50,000.00 -400.00 8,285.38 57,885.38 TOTAL LIABILITIES & EQUITY 74,685.38 Apr 17 Ordinary Income/Expense Income 4010 Design Services 4,980.00 4020 Decorating Services 3,400.00 4060 Sale of Carpets 2,400.00 4065 Sale of Draperies 1,000.00 4070 Sale of Lamps 1,200.00 4075 Sale of Mirrors 900.00 4100 Sales Discounts -84.62 49900 Uncategorized Income Total Income 0.00 13,795.38 Cost of Goods Sold 5060 Cost of Carpets Sold 1,200.00 5065 Cost of Draperies Sold 500.00 5070 Cost of Lamps Sold 600.00 5075 Cost of Mirrors Sold 450.00 5900 Inventory Adjustment Total COGS Gross Profit 150.00 2,900.00 10,895.38 Expense 6020 Accounting Expense 300.00 6050 Advertising Expense 100.00 6175 Deprec. Exp., Furniture 100.00 6185 Deprec. Exp., Computers 60.00 6200 Insurance Expense 200.00 6300 Janitorial Expense 125.00 6325 Office Supplies Expense 150.00 6400 Rent Expense 800.00 6450 Telephone Expense 275.00 6500 Utilities Expense 450.00 69800 Uncategorized Expenses Total Expense Net Ordinary Income 0.00 2,560.00 8,335.38 Other Income/Expense Other Expense 7000 Interest Expense Total Other Expense Net Other Income Net Income 50.00 50.00 -50.00 8,285.38