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Pro forma projection/Income Statement

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Pro forma projection based on a time period: This job request is for a pro forma projection. This income statement should identify what a company projects as expected results. Create the assumptions and the pro forma financials for an individual new Management Consulting firm venture. Demonstrate how the company's results will change. Identify what this consulting firm projects, as expected results from the beginning of year one or over several years. Make sure you have enough assumptions with enough detail to support your pro forma. You will begin this exercise by opening an Excel spreadsheet and naming four tabs (Assumptions; Sources & Uses; Income Statement; and Balance Sheet. Example attached of general requirements. Please note the example is for manufacturing and not Management Consulting Firm. Please ensure assumptions and details for: sales, pricing, fixed expenses (operational, marketing, salary etc.) and direct cost. Please reflect consulting industry when adding details ie hours contracted monthly, * This approach may result in several different sets of pro forma financial statements, each designed for a different investment amount. Capital 250,000 8 employees
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ASSUMPTIONS ABC CONSULTING ASSUMPTIONS A INITIAL CASH BALANCE $130,000 (PAID IN CAPITAL) B PRODUCT SALES FORECAST OF MONTHLY UNIT SALES PAYMENT RECEIVED IN THE MONTH FOLLOWING SALE MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 UNITS SOLD (MONTHLY) 0 0 0 100 200 300 400 500 600 700 800 900 UNITS SOLD (CUMULATIVE) 0 0 0 100 300 600 1000 1500 2100 2800 3600 4500 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 UNITS SOLD (MONTHLY) 925 950 975 1000 1025 1050 1000 950 900 850 800 750 UNITS SOLD (CUMULATIVE) 5425 6375 7350 8350 9375 10425 11425 12375 13275 14125 14925 15675 MONTH MONTH MONTH 25 26 27 UNITS SOLD (MONTHLY) 700 650 600 UNITS SOLD (CUMULATIVE) 16375 17025 17625 C PRODUCT PRICING MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 4 5 6 7 8 9 10 11 12 13 14 15 PRICE PER UNIT 50 50 50 50 50 50 50 50 50 50 50 50 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 16 17 18 19 20 21 22 23 24 25 26 27 PRICE PER UNIT 45 45 45 45 45 45 45 45 45 40 40 40 D DIRECT COSTS INVENTORY VALUED AT COST MATERIALS $9.50 PER UNIT PRODUCED COST OF MATERIALS PAID IN MONTH AFTER UNITS ARE PRODUCED LABOR $13.50 PER UNIT PRODUCED COST OF LABOR PAID IN MONTH UNITS ARE PRODUCED MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 # OF UNITS MANUFACTURED (MONTHLY) 100 200 300 400 500 600 700 800 900 925 950 975 # OF UNITS MANUFACTURED (CUMULATIVE) 100 300 600 1000 1500 2100 2800 3600 4500 5425 6375 7350 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 # OF UNITS MANUFACTURED (MONTHLY) 1000 1025 1050 1000 950 900 850 800 750 700 650 600 # OF UNITS MANUFACTURED (CUMULATIVE) 8350 9375 10425 11425 12375 13275 14125 14925 15675 16375 17025 17625 E INVENTORY PRODUCT DELIVERED IN MONTH SOLD SALES OCCUR IN THE THIRD MONTH AFTER PRODUCT IS MANUFACTURED MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 PRE-SALES INVENTORY BEGINNING BALANCE 0 100 300 600 900 1200 1500 1800 2100 2400 2625 2775 PLUS: PRODUCT MADE DURING MONTH 100 200 300 400 500 600 700 800 900 925 950 975 LESS: PRODUCT DELIVERED DURING MONTH 0 0 0 100 200 300 400 500 600 700 800 900 NET CHANGE 100 200 300 300 300 300 300 300 300 225 150 75 POST-SALES (ENDING ) INVENTORY 100 300 600 900 1200 1500 1800 2100 2400 2625 2775 2850 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 PRE-SALES INVENTORY BEGINNING BALANCE 2850 2925 3000 3075 3075 3000 2850 2700 2550 2400 2250 2100 PLUS: PRODUCT MADE DURING MONTH 1000 1025 1050 1000 950 900 850 800 750 700 650 600 LESS: PRODUCT DELIVERED DURING MONTH 925 950 975 1000 1025 1050 1000 950 900 850 800 750 NET CHANGE 75 75 75 0 -75 -150 -150 -150 -150 -150 -150 -150 POST-SALES (ENDING ) INVENTORY 2925 3000 3075 3075 3000 2850 2700 2550 2400 2250 2100 1950 F FIXED COSTS MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 RENT 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 OWNERS SALARY ($60,000 PER YEAR) 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000 MARKETING 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 RENT 2200 2200 2200 2200 2200 2200 2200 2200 2200 2200 2200 2200 OWNERS SALARY ($120,000 PER YEAR) 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120000 MARKETING 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 G EQUIPMENT COST OF EQUIPMENT $48,000 3 YEAR STRAIGHT LINE DEPRECIATION MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 DEPRECIABLE COST $48,000 $46,667 $45,333 $44,000 $42,667 $41,333 $40,000 $38,667 $37,333 $36,000 $34,667 $33,333 DEPRECIATION (36 MONTHS) $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $16,000 COST LESS DEPRECIATION $46,667 $45,333 $44,000 $42,667 $41,333 $40,000 $38,667 $37,333 $36,000 $34,667 $33,333 $32,000 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 DEPRECIABLE COST $32,000 $30,667 $29,333 $28,000 $26,667 $25,333 $24,000 $22,667 $21,333 $20,000 $18,667 $17,333 DEPRECIATION (36 MONTHS) $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $16,000 COST LESS DEPRECIATION $30,667 $29,333 $28,000 $26,667 $25,333 $24,000 $22,667 $21,333 $20,000 $18,667 $17,333 $16,000 H TAX RATE FOR NET TAXABLE INCOME 30% I INTEREST EARNER ON CASH BALANCES 3% SOURCES &USES OF CASH ABC CONSULTING SOURCES & USES OF CASH YEAR 1 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 1 2 3 4 5 6 7 8 9 10 11 12 BEGINNING CASH BALANCE PRIOR MONTH'S ENDING CASH BALANCE $70,700 $57,100 $41,377 $28,320 $17,923 $10,194 $5,139 $2,764 $3,077 $7,809 $16,966 A INITIAL CASH BALANCE $130,000 I INTEREST ON CASH (3% ANNUAL INTEREST $0 $0 $177 $143 $103 $71 $45 $25 $13 $7 $8 $20 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... CASH AVAILABLE FOR OPERATIONS $130,000 $70,700 $57,277 $41,520 $28,423 $17,994 $10,239 $5,164 $2,777 $3,084 $7,816 $16,986 SOURCES OF CASH B & C PRODUCT SALES $0 $0 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL SOURCES OF CASH $0 $0 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 USES OF CASH D DIRECT COST MATERIALS $950 $1,900 $2,850 $3,800 $4,750 $5,700 $6,650 $7,600 $8,550 $8,788 $9,025 $9,263 LABOR $1,350 $2,700 $4,050 $5,400 $6,750 $8,100 $9,450 $10,800 $12,150 $12,488 $12,825 $13,163 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL DIRECT COST $2,300 $4,600 $6,900 $9,200 $11,500 $13,800 $16,100 $18,400 $20,700 $21,275 $21,850 $22,425 CASH FROM OPERATIONS ($2,300) ($4,600) ($6,900) ($4,200) ($1,500) $1,200 $3,900 $6,600 $9,300 $13,725 $18,150 $22,575 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... E FIXED COSTS RENT $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 OWNER'S SALARIES $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 MARKETING $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 TAXES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL FIXED COST $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 TOTAL USES OF CASH $11,300 $13,600 $15,900 $18,200 $20,500 $22,800 $25,100 $27,400 $29,700 $30,275 $30,850 $31,425 COST OF EQUIPMENT $48,000 ENDING CASH BALANCE $70,700 $57,100 $41,377 $28,320 $17,923 $10,194 $5,139 $2,764 $3,077 $7,809 $16,966 $30,561 TEAM EXPERT-CLUTCH CONSULTING SOURCES & USES OF CASH YEAR 2 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH 13 14 15 16 17 18 19 20 21 22 23 24 BEGINNING CASH BALANCE PRIOR MONTH'S ENDING CASH BALANCE $30,561 $38,687 $47,489 $56,986 $63,904 $73,122 $84,631 $95,064 $104,426 $112,714 $119,925 $126,056 A INITIAL CASH BALANCE I INTEREST ON CASH (3% ANNUAL INTEREST $76 $76 $97 $119 $142 $160 $183 $212 $238 $261 $282 $300 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... CASH AVAILABLE FOR OPERATIONS $30,637 $38,764 $47,586 $57,104 $64,047 $73,281 $84,814 $95,276 $104,664 $112,975 $120,206 $126,356 SOURCES OF CASH B & C PRODUCT SALES $46,250 $47,500 $48,750 $45,000 $46,125 $47,250 $45,000 $42,750 $40,500 $38,250 $36,000 $33,750 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL SOURCES OF CASH $46,250 $47,500 $48,750 $45,000 $46,125 $47,250 $45,000 $42,750 $40,500 $38,250 $36,000 $33,750 USES OF CASH D DIRECT COST MATERIALS $9,500 $9,738 $9,975 $9,500 $9,025 $8,550 $8,075 $7,600 $7,125 $6,650 $6,175 $5,700 LABOR $13,500 $13,838 $14,175 $13,500 $12,825 $12,150 $11,475 $10,800 $10,125 $9,450 $8,775 $8,100 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL DIRECT COST $23,000 $23,575 $24,150 $23,000 $21,850 $20,700 $19,550 $18,400 $17,250 $16,100 $14,950 $13,800 CASH FROM OPERATIONS E FIXED COSTS RENT $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 OWNER'S SALARIES $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 MARKETING $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 TAXES $0 …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... …............... TOTAL FIXED COST $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 TOTAL USES OF CASH $38,200 $38,775 $39,350 $38,200 $37,050 $35,900 $34,750 $33,600 $32,450 $31,300 $30,150 $29,000 COST OF EQUIPMENT $0 ENDING CASH BALANCE $38,687 $47,489 $56,986 $63,904 $73,122 $84,631 $95,064 $104,426 $112,714 $119,925 $126,056 $131,106 INCOME STATEMENT ABC CONSULTING INCOME STATEMENT YEAR 1 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH YEAR 1 1 2 3 4 5 6 7 8 9 10 11 12 TOTALS B & C NET SALES $0 $0 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $225,000 LESS COST OF GOODS SOLD D & E MATERIALS $950 $1,900 $2,850 $3,800 $4,750 $5,700 $6,650 $7,600 $8,550 $8,788 $9,025 $9,263 $69,825 D & E LABOR $1,350 $2,700 $4,050 $5,400 $6,750 $8,100 $9,450 $10,800 $12,150 $12,488 $12,825 $13,163 $99,225 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ TOTAL COST OF GOODS SOLD $2,300 $4,600 $6,900 $9,200 $11,500 $13,800 $16,100 $18,400 $20,700 $21,275 $21,850 $22,425 $169,050 GROSS MARGIN ($2,300) ($4,600) ($6,900) ($4,200) ($1,500) $1,200 $3,900 $6,600 $9,300 $13,725 $18,150 $22,575 $55,950 GROSS MARGIN % 0% 0% 0% 0% 0% 8% 20% 26% 31% 39% 45% 50% 25% OPERATING EXPENSES F RENT $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000 F SALARIES $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000 F MARKETING $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ TOTAL OPERATING EXPENSES $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $108,000 G COST OF EQUIPMENT $48,000 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET OPERATING INCOME ($59,300) ($13,600) ($15,900) ($13,200) ($10,500) ($7,800) ($5,100) ($2,400) $300 $4,725 $9,150 $13,575 ($52,050) PLUS INTEREST ON CASH (3% ANNUAL INTEREST) $0 $0 $177 $143 $103 $71 $45 $25 $13 $7 $8 $20 $611 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ PRE-TAX EARNINGS ($59,300) ($13,600) ($15,723) ($13,057) ($10,397) ($7,729) ($5,055) ($2,375) $313 $4,732 $9,158 $13,595 ($51,439) LESS G DEPRECIATION $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $16,000 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET TAXABLE INCOME ($60,633) ($14,933) ($17,057) ($14,391) ($11,730) ($9,063) ($6,389) ($3,708) ($1,020) $3,399 $7,824 $12,261 ($115,439) H PROVISION FOR TAXES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET INCOME ($60,633) ($14,933) ($17,057) ($14,391) ($11,730) ($9,063) ($6,389) ($3,708) ($1,020) $3,399 $7,824 $12,261 ($115,439) TEAM EXPERT-CLUTCH CONSULTING INCOME STATEMENT YEAR 2 MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH YEAR 2 13 14 15 16 17 18 19 20 21 22 23 24 TOTALS B & C NET SALES $46,250 $47,500 $48,750 $50,000 $51,250 $52,500 $50,000 $47,500 $45,000 $42,500 $40,000 $37,500 $558,750 LESS COST OF GOODS SOLD D & E MATERIALS $9,500 $9,738 $9,975 $9,500 $9,025 $8,550 $8,075 $7,600 $7,125 $6,650 $6,175 $5,700 $97,613 D & E LABOR $13,500 $13,838 $14,175 $13,500 $12,825 $12,150 $11,475 $10,800 $10,125 $9,450 $8,775 $8,100 $138,713 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ TOTAL COST OF GOODS SOLD $23,000 $23,575 $24,150 $23,000 $21,850 $20,700 $19,550 $18,400 $17,250 $16,100 $14,950 $13,800 $236,325 GROSS MARGIN $23,250 $23,925 $24,600 $27,000 $29,400 $31,800 $30,450 $29,100 $27,750 $26,400 $25,050 $23,700 $322,425 GROSS MARGIN % 50% 50% 50% 54% 57% 61% 61% 61% 62% 62% 63% 63% 58% OPERATING EXPENSES F RENT $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $26,400 F SALARIES $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $120,000 F MARKETING $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ TOTAL OPERATING EXPENSES $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $15,200 $182,400 G COST OF EQUIPMENT $0 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET OPERATING INCOME $8,050 $8,725 $9,400 $11,800 $14,200 $16,600 $15,250 $13,900 $12,550 $11,200 $9,850 $8,500 $140,025 PLUS INTEREST ON CASH (3% ANNUAL INTEREST) $76 $76 $97 $119 $142 $160 $183 $212 $238 $261 $282 $300 $2,145 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ PRE-TAX EARNINGS $8,126 $8,801 $9,497 $11,919 $14,342 $16,760 $15,433 $14,112 $12,788 $11,461 $10,132 $8,800 $142,170 LESS G DEPRECIATION $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $16,000 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET TAXABLE INCOME $6,793 $7,468 $8,163 $10,585 $13,009 $15,426 $14,099 $12,778 $11,454 $10,128 $8,798 $7,466 $126,170 H PROVISION FOR TAXES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $37,851 $37,851 …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ …............ NET INCOME $6,793 $7,468 $8,163 $10,585 $13,009 $15,426 $14,099 $12,778 $11,454 $10,128 $8,798 ($30,385) $88,319 BALANCE SHEET ABC CONSULTING YEAREND BALANCE SHEET YEAR 1 YEAR 2 ASSETS A CASH $30,561 $131,106 B&E RECEIVABLES $45,000 $33,750 E INVENTORY $65,550 $44,850 ............. …........... TOTAL CURRENT ASSETS $141,111 $209,706 G FIXED ASSETS $48,000 $48,000 G LESS ACCUMULATED DEPRECIATION $16,000 $32,000 $32,000 $16,000 NET FIXED ASSETS TOTAL ASSETS $173,111 $225,706 LIABILITIES & STOCKHOLDERS EQUITY D ACCOUNTS PAYABLE MATERIALS $9,263 $5,700 F ACCRUED SALARIES $0 $0 …............ ….......... CURRENT TOTAL LIABILITIES $9,263 $5,700 A PAID IN CAPITAL $130,000 $130,000 RETAINED EARNINGS $33,849 $90,006 …........... …............ LIABILITIES & STOCKHOLDERS EQUITY $173,111 $225,706 TOTAL EQUITY $163,849 $220,006
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