Question
Using the Score Financial Projections Template (See Below) analyze the pictures in their entirety for any aspects that may not be obvious to the common
Using the Score Financial Projections Template (See Below) analyze the pictures in their entirety for any aspects that may not be obvious to the common financial statement user. Explain each of these areas of possible confusion. Also,Please provide assumptions regarding financial statement content yearly for the first three years. The spreadsheet did not show up on word like I wanted it to. If the person looking at this would like a copy of the excel spreadsheet I would be happy to send it to them.
| Income Statement Years 1-3 | ||||||
| Prepared By: | Company Name: | |||||
| Owner | Company 1 | |||||
| Revenue | 2017 |
| 2018 |
| 2019 |
|
| Tops | 180,510 |
| 198,561 |
| 218,417 |
|
| Bottoms | 252,100 |
| 277,310 |
| 305,041 |
|
| Dresses | 291,960 |
| 321,156 |
| 353,272 |
|
| Outfits & Sets | 405,774 |
| 446,351 |
| 490,987 |
|
| Outerwear | 267,744 |
| 294,518 |
| 323,970 |
|
| Pajamas | 198,810 |
| 218,691 |
| 240,560 |
|
| Total Revenue | $ 1,596,898 | 100% | $ 1,756,588 | 100% | $ 1,932,247 | 100% |
| Cost of Goods Sold |
|
|
|
|
|
|
| Tops | 60,170 |
| 66,187 |
| 72,806 |
|
| Bottoms | 94,538 |
| 103,991 |
| 114,390 |
|
| Dresses | 116,784 |
| 128,462 |
| 141,309 |
|
| Outfits & Sets | 202,887 |
| 223,176 |
| 245,493 |
|
| Outerwear | 75,303 |
| 82,833 |
| 91,117 |
|
| Pajamas | 79,524 |
| 87,476 |
| 96,224 |
|
| Total Cost of Goods Sold | 629,206 | 39% | 692,126 | 39% | 761,339 | 39% |
| Gross Margin | 967,693 | 61% | 1,064,462 | 61% | 1,170,908 | 61% |
| Payroll | 99,939 |
| 117,431 |
| 152,660 |
|
| Operating Expenses |
|
|
|
|
|
|
| Advertising | 4,248 |
| 4,375 |
| 4,507 |
|
| Car and Truck Expenses | - |
| - |
| - |
|
| Commissions and Fees | - |
| - |
| - |
|
| Contract Labor (Not included in payroll) | - |
| - |
| - |
|
| Insurance (other than health) | 1,080 |
| 1,112 |
| 1,146 |
|
| Legal and Professional Services | 3,600 |
| 3,708 |
| 3,819 |
|
| Licenses | - |
| - |
| - |
|
| Office Expense | - |
| - |
| - |
|
| Rent or Lease -- Vehicles, Machinery, Equipment | - |
| - |
| - |
|
| Rent or Lease -- Other Business Property | - |
| - |
| - |
|
| Repairs and Maintenance | 1,200 |
| 1,260 |
| 1,323 |
|
| Supplies | 3,600 |
| 3,708 |
| 3,819 |
|
| Travel, Meals and Entertainment | - |
| - |
| - |
|
| Utilities | 3,000 |
| 3,090 |
| 3,183 |
|
| Miscellaneous | 4,800 |
| 4,944 |
| 5,092 |
|
| Other Expense 1 |
|
|
|
|
|
|
| Other Expense 2 |
|
|
|
|
|
|
| Total Operating Expenses | $ 21,528 | 1% | $ 22,198 | 1% | $ 22,889 | 1% |
| Income (Before Other Expenses) | $ 846,226 | 53% | $ 924,833 | 53% | $ 995,359 | 52% |
| Other Expenses |
|
|
|
|
|
|
| Amortized Start-up Expenses | 15,565 |
| 15,565 |
| 15,565 |
|
| Depreciation | 12,564 |
| 15,157 |
| 15,157 |
|
| Interest |
|
|
|
|
|
|
| Commercial Loan | 2,569 |
| 2,267 |
| 1,936 |
|
| Commercial Mortgage | - |
| - |
| - |
|
| Credit Card Debt | - |
| - |
| - |
|
| Vehicle Loans | - |
| - |
| - |
|
| Other Bank Debt | - |
| - |
| - |
|
| Line of Credit | (281) |
| (2,123) |
| (4,019) |
|
| Bad Debt Expense | (1,596,898) |
| - |
| - |
|
| Total Other Expenses | $ (1,566,481) | -98% | $ 30,866 | 2% | $ 28,639 | 1% |
| Net Income Before Income Tax | $ 2,412,707 |
| $ 893,968 |
| $ 966,720 |
|
| Income Tax | $ 151,767 |
| $ 56,846 |
| $ 61,393 |
|
| Net Income/Loss | $ 2,260,940 | 142% | $ 837,122 | 48% | $ 905,327 | 47% |
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