Pro-Forma Income Statement
Pro-Forma Income Statement
| ZXY – Forecast | ||||||||||||||||
| Ten Years | ||||||||||||||||
| Pro-Forma Income Statement | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Total | |||||
| Brand new Acme System – full system | ||||||||||||||||
| Income | ||||||||||||||||
| Revenue | ||||||||||||||||
| Product A | 2,400,000 | 2,800,000 | 2,800,000 | 3,240,000 | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | 34,640,000 | |||||
| Product B | 900,000 | 1,350,000 | 2,500,000 | 3,000,000 | 4,000,000 | 4,950,000 | 5,500,000 | 22,200,000 | ||||||||
| Total · Revenue | 2,400,000 | 2,800,000 | 2,800,000 | 4,140,000 | 5,250,000 | 6,400,000 | 6,900,000 | 7,900,000 | 8,850,000 | 9,400,000 | 56,840,000 | |||||
| Cost of Goods Sold | ||||||||||||||||
| Pest Control | 50,000 | 66,550 | 73,205 | 73,205 | 73,205 | 73,205 | 73,205 | 73,205 | 73,205 | 73,205 | 702,190 | |||||
| SQF FDA mandates | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 600,000 | |||||
| Rent – Plant | 400,000 | 408,000 | 416,160 | 424,483 | 432,973 | 441,632 | 450,465 | 459,474 | 468,664 | 478,037 | 4,379,888 | |||||
| Plant Equip. – Fklf – Scrb/Lease | 40,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 616,000 | |||||
| Plant Equip. – Ongoing maintenance | 50,000 | 70,000 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 720,000 | |||||
| Plant Equip. – Parts | 40,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 490,000 | |||||
| Miscellaneous – Equipment | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 150,000 | |||||
| Building repairs | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 250,000 | |||||
| Plant supplies | 100,000 | 120,000 | 144,000 | 109,808 | 120,789 | 132,868 | 146,154 | 160,770 | 176,847 | 194,532 | 1,405,767 | |||||
| Plant Utilities | 120,000 | 210,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 2,250,000 | |||||
| Garbage removal/Janitorial | 30,000 | 45,626 | 52,470 | 52,470 | 52,470 | 52,470 | 52,470 | 52,470 | 52,470 | 52,470 | 495,388 | |||||
| Plant telephone | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | 72,000 | |||||
| Plant payroll expense | 495,000 | 675,000 | 825,000 | 885,000 | 915,000 | 975,000 | 1,005,000 | 1,065,000 | 1,095,000 | 1,125,000 | 9,060,000 | |||||
| Health Benefits | 45,360 | 97,200 | 105,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 947,560 | |||||
| WC & P/R Expense | 59,400 | 81,000 | 99,000 | 106,200 | 109,800 | 117,000 | 120,600 | 127,800 | 131,400 | 135,000 | 1,087,200 | |||||
| Installation/Additional Equipment | 250,000 | – 0 | 200,000 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | 450,000 | |||||
| Total COGS | 1,816,960 | 2,024,576 | 2,481,035 | 2,317,366 | 2,370,437 | 2,398,375 | 2,454,095 | 2,544,919 | 2,603,786 | 2,664,444 | 23,675,993 | |||||
| Gross Profit | 583,040 | 775,424 | 318,965 | 1,822,634 | 2,879,563 | 4,001,625 | 4,445,905 | 5,355,081 | 6,246,214 | 6,735,556 | 33,164,007 | |||||
| Expenses Other than GOGS | ||||||||||||||||
| Liability Insurance | 60,000 | 91,253 | 104,940 | 104,940 | 104,940 | 104,940 | 104,940 | 104,940 | 104,940 | 104,940 | 990,776 | |||||
| Bank Service Charges | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 15,000 | |||||
| Interest on debt | 90,627 | 187,626 | 232,323 | 206,766 | 166,740 | 122,959 | 75,071 | 31,993 | 7,539 | 111 | 1,121,754 | |||||
| Incentive Plan | 13,200 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 145,200 | ||||||
| Management | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 | 190,000 | 190,000 | 190,000 | 190,000 | 190,000 | 1,850,000 | |||||
| Workers Comp./P/R Taxes | 21,600 | 21,600 | 21,600 | 21,600 | 21,600 | 22,800 | 22,800 | 22,800 | 22,800 | 22,800 | 222,000 | |||||
| Health Insurance Benefit | 4,200 | 5,082 | 5,590 | 5,590 | 5,590 | 5,590 | 5,590 | 5,590 | 5,590 | 5,590 | 54,004 | |||||
| Office/Administrative Expenses | 12,000 | 15,972 | 17,569 | 17,569 | 17,569 | 17,569 | 17,569 | 17,569 | 17,569 | 17,569 | 168,526 | |||||
| Legal and Professional – Tax | 30,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 120,000 | |||||
| Cellular phones | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 50,000 | |||||
| Internet Services | 4,400 | 5,856 | 6,442 | 6,442 | 6,442 | 6,442 | 6,442 | 6,442 | 6,442 | 6,442 | 61,793 | |||||
| Postage & Delivery | 1,100 | 1,464 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 15,448 | |||||
| Office supplies | 11,000 | 9,983 | 10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 108,829 | |||||
| Employee Food & Beverage | 1,100 | 1,464 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 15,448 | |||||
| Local/Business Taxes | 1,100 | 1,464 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 1,611 | 15,448 | |||||
| Property Taxes | 12,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 147,000 | |||||
| Travel – Equip. Consultants | 25,000 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 173,500 | |||||
| Licenses and Permits | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 100,000 | |||||
| Total Expense | 470,627 | 592,964 | 658,777 | 633,220 | 593,194 | 560,613 | 512,725 | 469,647 | 445,193 | 437,765 | 5,374,724 | |||||
| Net Income before Depreciation | 112,413 | 182,460 | (339,812) | 1,189,413 | 2,286,369 | 3,441,012 | 3,933,181 | 4,885,434 | 5,801,021 | 6,297,791 | 27,789,282 | |||||
| Depreciation Expense ( | 185,770 | 504,140 | 652,915 | 573,415 | 409,635 | 325,725 | 299,025 | 240,970 | 124,955 | 33,450 | 3,350,000 | |||||
| Tax Expense | – 0 | – 0 | – 0 | – 0 | 99,961 | 934,586 | 1,090,247 | 1,393,339 | 1,702,820 | 1,879,302 | 7,100,255 | |||||
| Net Income | (73,357) | (321,680) | (992,727) | 615,998 | 1,776,773 | 2,180,701 | 2,543,909 | 3,251,125 | 3,973,246 | 4,385,039 | 17,339,027 | |||||
| Forecast of Cash Flows | ||||||||||||||||
| Net Income before Depreciation | 112,413 | 182,460 | (339,812) | 1,189,413 | 2,286,369 | 3,441,012 | 3,933,181 | 4,885,434 | 5,801,021 | 6,297,791 | 27,789,282 | |||||
| Deduct startup costs | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | |||||
| Cash flow before income taxes | 112,413 | 182,460 | (339,812) | 1,189,413 | 2,286,369 | 3,441,012 | 3,933,181 | 4,885,434 | 5,801,021 | 6,297,791 | 27,789,282 | |||||
| Working Capital | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | |||||
| Lease Payments – Principal | 155,146 | 303,919 | 401,132 | 426,689 | 466,715 | 510,496 | 558,384 | 370,759 | 149,371 | 7,389 | 3,350,001 | |||||
| Pre-Tax Cash Flow | (42,733) | (121,460) | (740,944) | 762,725 | 1,819,654 | 2,930,516 | 3,374,796 | 4,514,674 | 5,651,651 | 6,290,402 | 24,439,282 | |||||
| Taxes | – 0 | – 0 | – 0 | – 0 | 99,961 | 934,586 | 1,090,247 | 1,393,339 | 1,702,820 | 1,879,302 | 7,100,255 | |||||
| After tax – Cash Flow | (42,733) | (121,460) | (740,944) | 762,725 | 1,719,693 | 1,995,930 | 2,284,549 | 3,121,335 | 3,948,831 | 4,411,100 | 17,339,027 | |||||
CSTX Forecast Forecast 11
