{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Income Projections - Copy

Income Projections - Copy - 53,333 53,333 53,333 53,333...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Bent Cycling Author Kory Johnson Date 3/21/2008 Purpose To project Bent Cycling's income statements for the next five fiscal years
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Bent Cycling Projected Five-Year Income Statement 02/27/2012 Bent Cycling Prepared: 11/7/2009 Projected Five-Year Income Statement Percent Cost of Goods 72% Assumed Tax Rate 33% Year 1 Year 2 Year 3 Year 4 Year 5 Sales Revenue 3,200,000 3,805,463 4,525,483 5,381,737 6,400,000 Cost of Goods Sold 2,304,000 2,739,933 3,258,348 3,874,851 4,608,000 Gross Profit $896,000 $1,065,530 $1,267,135 $1,506,886 $1,792,000 Accounting 7,000 8,050 9,258 10,646 12,243 Advertising & Promotion 21,000 24,150 27,773 31,938 36,729 Insurance 2,000 2,300 2,645 3,042 3,498 Maintenance 4,800 5,520 6,348 7,300 8,395 Utilities 7,600 8,740 10,051 11,559 13,292 Miscellaneous 2,400 2,760 3,174 3,650 4,198 Total General Expenses $44,800 $51,520 $59,248 $68,135 $78,355 Earnings before Interest, Depr. & Tax 851,200 1,014,010 1,207,887 1,438,751 1,713,645 Depreciation Expense 53,333
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 53,333 53,333 53,333 53,333 Operating Profit $797,867 $960,676 $1,154,554 $1,385,418 $1,660,311 Interest Expense 107,113 87,704 66,385 42,966 17,243 Earnings Before Taxes $690,754 $872,972 $1,088,169 $1,342,452 $1,643,068 Estimated Tax 227,949 288,081 359,096 443,009 542,213 Net Income $462,805 $584,891 $729,073 $899,443 $1,100,856 Bent Cycling Depreciation of Assets 02/27/2012 Bent Cycling Prepared: 11/7/2009 Depreciation of Assets Initial Asset Value $1,200,000 Salvage Value $400,000 Life of Asset (Years) 15 Year 1 2 3 4 5 Straight-Line (SLN) $53,333 $53,333 $53,333 $53,333 $53,333 Cumulative Depreciation $53,333 $106,667 $160,000 $213,333 $266,667 Depreciation $1,146,667 $1,093,333 $1,040,000 $986,667 $933,333 Declining Balance (DB) $85,200 $79,151 $73,531 $68,310 $63,460 Cumulative Depreciation $85,200 $164,351 $237,882 $306,192 $369,653 Depreciation $1,114,800 $1,035,649 $962,118 $893,808 $830,347...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern