1. Attached to this assignment is an excel spreadsheet that is set up for you to prepare pro-forma income statements for three years. The base year financial information (2021) is supplied in the spreadsheet.

1. Making key assumptions about how income and expenses will change in the next three years, complete the income statements for 2022-2024. Present the normal business case in your income statements, not the worst or best case.
2. As shown in 2021, compute percent of revenue figures for 2022-2024.
3. On the excel spreadsheet (anywhere under operating cash flow) describe the assumptions you made when projecting (or forecasting) sales and expenses for 2022-24.
4. Attach your completed spreadsheet when you submit this homework to Blackboar Please save as the excel spreadsheet giving it a new name that includes your name.

Note: Cells highlighted in yellow contain formulas. If you change them, the sub-totals and
totals that compute income and cash flow will not work.
	Actual Financial Results			Projected or "pro forma" Financial Results
	2021	% of Revenue		2022	% of Revenue	2023	% of Revenue	2024	% of Revenue
Sales Revenue:	$ 10,000,000	100%
Cost of Goods Sold:
Materials	$ 2,000,000	20%		$ -		$ -		$ -
Labor	$ 2,500,000	25%		$ -		$ -		$ -
Total Cost of Goods Sold:	$ 4,500,000	45%		$ -		$ -		$ -
Gross Profit:	$ 5,500,000	55%		$ -		$ -		$ -
Operating Expenses:
Wages	$ 2,000,000	20%
Employee Benefits	$ 500,000	5%
Advertising	$ 50,000	1%
Repairs and Maintenance	$ 25,000	0%
Rent	$ 100,000	1%
Insurance	$ 25,000	0%
Depreciation	$ 250,000	3%
Total Operating Expenses	$ 2,950,000	30%		$ -		$ -		$ -
Total Operating Income - EBIT	$ 2,550,000	26%		$ -		$ -		$ -
Interest Expense:	$ 250,000	3%
Income Before Taxes:	$ 2,300,000	23%		$ -		$ -		$ -
Taxes:	$ 575,000.0	6%
Net Income (Profit/Loss)	$ 1,725,000.0	17%		$ -		$ -		$ -
Operating Cash Flow:	$ 2,225,000.0	22%		$ -		$ -		$ -