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Jamica is applying for a business loan of $500,000 for her company to expand her Internet sales.

Jamica is applying for a business loan of $500,000 for her company to expand her Internet sales. The bank has asked for an Income statement and Cash Flow statement for the upcoming three years (called "pro forma" statements). Below is the data that she has put together based on the past statements and her plans for the future.
a Prepare an income statements with three columns of data for the years 2013, 2104, and 2015 that includes totals for Gross margin, SG&A, EBIT, Pre-tax Income and Net Income.
b Prepare a cash flow statement with three columns of data for the years 2013, 2014 and 2015 that includes rows for the cash on hand at the beginning of each year, and at the end of each year.
Cash on Hand EOY 2012 $100,000
Loan Received in 2013 $500,000

Items 2013 2014 2015
Asset purchases $450,000 $150,000 $150,000
Depreciation $65,000 $80,000 $100,000
Office Equipment rental $5,000 $5,000 $5,000
Hourly wages $300,000 $350,000 $400,000
Loan Principal Paid $100,000 $100,000 $100,000
Interest Paid $40,000 $35,000 $30,000
Marketing and Web site $115,000 $150,000 $170,000
Miscellaneous expenses $260,000 $300,000 $350,000
Permanent Staff Salaries $200,000 $250,000 $300,000
Rent $13,700 $15,000 $16,500
Sales $1,000,000 $1,500,000 $1,750,000
Tax Rate 20% 20% 20%
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Please find attached the solution.... Thanks Note: The business given in the question is... View the full answer

8440695.xls

Jamica
Pro forma Income Statement
2013
1,000,000
115,000
885,000 2014
1,500,000
150,000
1,350,000 2015
1,750,000
170,000
1,580,000 300,000
200,000
5,000
65,000
13,700
260,000
843,700 350,000...

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