Per forma Statements of XYZ Company INC - 92396

Solution Posted by
deepeyes
Solution Detail
Price: $20.00
  • From: Business,
  • Posted on: Thu 23 Jul, 2015
  • Request id: # 77518
  • Purchased: 1 time(s)
  • Average Rating: No rating
Request Description
0
Solution Description

Per forma Statements of XYZ Company INC

We assume that there is an increase in the sales due to the introduction of new product and increase in the production capacity.

With increased sale, we will be acquiring fixed assets with the excess cash and will be taking loan as follows:

XYZ Company INC

Performa Income Statement

Income Statement

20XX

% Ratio to the Sales

20X1

20X2

20X3

20X4

20X5

Revenue (net)

$1,747,698

100.0%

$2,097,238

$2,306,961

$2,537,657

$2,791,423

$3,070,566

Cost of revenue

$1,050,270

60.1%

$1,260,324

$1,386,356

$1,524,992

$1,677,491

$1,845,240

Gross Profit

$697,428

39.9%

$836,914

$920,605

$1,012,665

$1,113,932

$1,225,325

Selling expense

$125,000

7.2%

$150,000

$165,000

$181,500

$199,650

$219,615

Operating expenses

$285,850

16.4%

$343,020

$377,322

$415,054

$456,560

$502,216

Operating profit

$286,578

16.4%

Attachments
xyz_INC.docx
xyz_INC.docx