Hello, I need help coming up with an estimated income statement for the project attached. I did some of the work for one of the files you can work on it if you think it makes sense but if you don’t the other file is empty to begin from scratch.

According to the situation of your current group business, please estimate the following numbers based on your forecast of the cost and revenue in the year 2020-2021:

 

1. Net sales revenue (Unit: Year): Volume * Price=_____80,000_*$35= $2,800,000____

			Income Statement
	For the Year Ended December 31, 2021
Revenue:
Revenue earned					$2,800,000
Expenses:
Fixed expenses				$156,065.60
Variable expenses				$1,430,000
Income before income tax					_________
Income Tax expense					(21%) = $588,000
Net Income					$625,934.4

 

2. Fixed expenses (list the items and their yearly costs here):

 

Website Expenses = $1,000 (Wix.com)

Warehouse Rent = $10 SQ/FT = $32,000 (Property Tax Included)

Loan/Interest = $118,065.60 (Monthly payment is $9,838.80 w/ Interest of 4.25%)

 

Some example of fixed expenses is mortgage or rent payment, loan or interest expenses, property tax, salaries (for the administrative costs), etc.

 

3. Variable expenses (list the items and their yearly costs here):

 

Software Developers (4) = $500,000 (4 Developer = Owners)

Lanyard Production = $20,000 (Total Production)

U.S.A Manufacturers = $650,000 (Total Production)

OBD Scanners Shipment = $10,000 (Transportation from Ohio to Chicago)

Customer Service/Employees = $250,000 (Contract w/ Third Party Service for 24/7 Customer Service Agents)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Calculating your Breakeven Point:

Equations: Breakeven Point ($) =  Total Fixed Expenses/Contribution Margin

 

Contribution Margin= 1 – (Variable Expenses/Net Sales)

 

 

 

 

 

2. Draw your Breakeven Chart:

Cas

Sales Forecast Sample (Repair shop for imported cars):

Number of cars in trading zone                                 84,000

   x  Percent of imports                                                x 24%

   =  Number of imported cars in trading zone        20,160

Number of imports in trading zone                          20,160

   x  Average expenditure on repairs                         x $485

   =  Total import repair sales potential              $9,777,600

Total import repair sales potential                    $9,777,600

   x  Estimated market share                                      x 9.9%

      =  Sales estimate                                              $967,982.4

 

 

Sales Forecast for your business (Nov, Dec, Jan, Feb, March):

 

For example, your sales forecast of November:

Number of Total Market (may fluctuate each month)      ______

x  Percent of Criteria (could be more than one)*         x __%

=  Number of target market after each Criteria            ______

 

Number of target market after criteria                                               ______

x  Average expenditure on your products or services                       x $___

=  Total Sales Potential                                                                 $_______

 

Total Sales Potential                                    $______

x  Estimated market share*                           x     %

=  Sales estimate                                      $_______

 

*Criteria should base on your target market analysis. For example, some of the criteria maybe college students, certain age, ethnicity or gender groups, specific location, certain behavioral groups etc.

*Simple way of calculating your market share: Company’s sales /Total sales of the industry (over the same period)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on the cash budget example and your sales forecast above, please fill out the three months cash budget of your business (you would need the 12 months cash budget in your final business plan):

 

Cash Budget for your business (Jan-March, 2021)

Cash receipts	Jan.	Feb.	March
Total Cash Receipts
Cash Disbursements
Total cash disbursements
End-of-Month Balance
Beginning cash Balance
+Cash receipts
-Cash disbursements
Cash (end of month)
Borrowing
Repayment
Final cash balance
Monthly Surplus (Deficit)