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Income Statements

Income Statement

Dave and Jacky Delicious: Income Statement Income Statement Instructions: Enter estimates into the “Green Cells Only”. Make sure that you have thoroughly researched your potential market to ensure that your revenue and expense estimates can be explained thoroughly to an investor or banker. Hence, you must calculate your revenues on specific variables such as the percentage of your company’s market penetration and the number of customers your company will attract during the period. The estimated number of customers per period is multiplied by the selling price of your products or services to attain your estimated revenue for the period. Hence, you must validate your revenue estimates and your expense estimates. You should have quotes for any expense items your company will incur such as rent, electric, water, sewer, and especially inventory you plan to purchase. In conclusion, your estimates are only as accurate as the time and effort you put into gathering the real-world data!
Revenue Year 1 Year 2 Year 3
Gross Sales 1332500 1386200 1442064
Less: Sales Returns and Allowances 66625 69310 72103
Net Sales 1265875 1316890 1369961
Cost of Goods Sold
Beginning Inventory 0
Add: Purchases 0
Inventory Available 0 0 0
Less: Ending Inventory 0
Cost of Goods Sold 562500 582271.88 602738.73
Gross Profit (Loss) 703375 734618.1 767222.07
Expenses
Advertising 5200 5200 5200
Amortization 0
Bad Debts 33313 34655 36052
Bank Charges 0 0 0
Charitable Contributions 126588 131689 136996
Commissions 0 0 0
Contract Labor 0 0 0
Depreciation 0 0 0
Dues and Subscriptions 0 0 0
Employee Benefit Programs 0 0 0
Insurance 2000 2000 2000
Interest 586 586 586
Legal and Professional Fees 19500 19500 19500
Licenses and Fees 1000 1000 1000
Miscellaneous 36000 36000 36000
Office Expense 31500 31500 31500
Payroll Taxes 36000 36000 36000
Postage
Rent 60000 60000 60000
Repairs and Maintenance 62000 60000 60000
Supplies
Telephone 11000 12000 12000
Travel 11000 12000 12000
Utilities 60000 60000 60000
Vehicle Expenses
Wages 120000 120000 120000
Total Expenses 615686 622130 628834
Net Operating Income 87689 112488 138388
Other Income
Gain (Loss) on Sale of Assets 0 0 0
Interest Income 0 0 0
Total Other Income 0 0 0
Net Income (Loss) 87689 112488 138388

Balance Sheet

Company Name: Dave and Jacky Delicious Balance Sheet Instructions: Enter data into the “Green Cells Only”. A Balance Sheet is a snapshot of your company at one time in history. Thus, it’s important that you determine and then input the value of your company’s assets and liabilities at the beginning and end of each accounting period. Hence, a Balance Sheet must be created at the beginning of the company’s accounting period and at the end of the company’s accounting period. The beginning and ending Balance Sheets illustrate the asset and liability changes that have occurred during the accounting period. Essentially, the basic formula for Owner’s Equity is the formula Assets – Liabilities = Owner’s Equity. Hence, make sure to thoroughly analyze and input all Current and Long-term Assets in addition to all Current and Long-term Liabilities. Lastly, remember to depreciate all long-term assets during each accounting period. Remember that depreciation goes on the Income Statement and Balance Sheet but not on the Cash Flow Statement.
***Input Green Cells Only***
Assets Year 1 Year 2 Year 3
Current Assets:
Cash 54,973 63,500 85,500
Investments 39,000 39,000 39,000
Inventories 25,000 30,000 25,000
Accounts receivable 10,000 25,000 7,500
Pre-paid expenses 30,000 10,000 10,000
Other 7,027 6,000 0
Total Current Assets 166,000 173,500 167,000
Fixed Assets: Year 1 Year 2 Year 3
Property and equipment 69,000 84,000 90,000
Leasehold improvements 0 0 0
Equity and other investments 0 0 0
Less accumulated depreciation 0 0 0
Total Fixed Assets 69,000 84,000 90,000
Other Assets: Year 1 Year 2 Year 3
Goodwill 0 0 0
Total Other Assets 0 7,500 15,000
Total Assets 235,000 265,000 272,000
Liabilities and Owner’s Equity
Current liabilities: Year 1 Year 2 Year 3
Accounts payable 10,000 15,000 5,000
Accrued wages 0 0 0
Accrued compensation 0 0 0
Income taxes payable 0 0 2,500
Unearned revenue 0 0 0
Other 0 0 0
Total Current Liabilities 10,000 15,000 7,500
Long-term Liabilities: Year 1 Year 2 Year 3
Bank Loan 35,000 50,000 45,500
Total Long-term Liabilities 35,000 50,000 45,500
Owner’s Equity: Year 1 Year 2 Year 3
Investment capital 100,000 100,000 100,000
Accumulated retained earnings 90,000 100,000 135,000
Total Owner’s Equity 190,000 200,000 235,000
Total Liabilities and Owner’s Equity 235,000 265,000 288,000

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