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# Financial Plan Below is an overview of our expected financial performance over the next five years: To achieve these projections, we need to raise...

Please explain to me how they calculated the interest expense and the income tax expense on page 4 of the attached document. I circled the location where I have the question.

Financial Plan Below is an overview of our expected financial performance over the next five years: To achieve these projections, we need to raise \$___________ in financing. Figure : Annual Financial Summary FY 1 FY 2 FY 3 FY 4 FY 5 Revenues \$647,200 \$788,400 \$960,600 \$1,170,400 \$1,426,200 Direct Expenses \$129,400 \$157,700 \$192,100 \$234,100 \$285,300 Gross Profit \$517,800 \$630,700 \$768,500 \$936,300 \$1,140,900 Gross Profit (%) 80.0% 80.0% 80.0% 80.0% 80.0% Other Expenses \$340,800 \$354,320 \$372,978 \$390,807 \$409,577 EBITDA \$177,000 \$276,380 \$395,522 \$545,493 \$731,323 Depreciation \$5,200 \$5,200 \$5,200 \$5,200 \$4,200 Amortization \$0 \$0 \$0 \$0 \$0 Preliminary Exp Written off \$0 \$0 \$0 \$0 \$0 Interest Expense \$9,600 \$9,600 \$9,600 \$9,700 \$9,700 Income Tax Expense \$56,800 \$91,500 \$133,200 \$185,700 \$251,100 Net Income \$105,400 \$170,080 \$247,522 \$344,893 \$466,323 On the Go LLC Business Plan Page 1
. IX. Financial Plan Financial Highlights Below please find and overview of our financial projections. See the Appendix for our full projected Income Statements, Balance Sheets and Cash Flow Statements. Figure : Financial Highlights \$0 \$200,000 \$400,000 \$600,000 \$800,000 \$1,000,000 \$1,200,000 \$1,400,000 \$1,600,000 FY 1 FY 2 FY 3 FY 4 FY 5 Revenues Gross Profit Net Income On the Go LLC Business Plan Page 2
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Computation of interest expense:Computation of interest is always dependent on two factors one is rate of interest and the second is the
principal balance outstanding. In the given question we can...

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