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Instructions

FINAL: Creating a Pro Forma Income Statement Using Google Sheets

Scenario:

You are the financial manager for a small manufacturing company planning to expand its production. Based on the following projections, create a pro forma income statement for the upcoming year:

Projections:

Sales: Increase by $20\%$ from $$500,000.$

Cost of Goods Sold $($COGS$)$: $60\%$ of sales.

Operating Expenses: Increase by $10\%$ from $$150,000.$

Depreciation Expense: $$20,000.$

Interest Expense: $$5,000.$

Tax Rate: $30\%.$

Task:

Open Google Sheets and create a new spreadsheet.

Create a pro forma income statement for the upcoming year based on the provided projections. Please include current year's numbers side by side with the projected figures for the upcoming year $($you will have two columns of data: one is current year, another one is upcoming year$).$

Instructions:

Pro Forma Income Statement:

List the following items: Sales, COGS, Gross Profit, Operating Expenses, Depreciation Expense, Operating Income, Interest Expense, Earnings Before Tax $($EBT$),$ Taxes, and Net Income.

Calculate the pro forma values based on the provided projections.

Submission:

Share the link to your Google Sheets file in the assignment submission area.

Please make sure you adjust settings to be viewed by anyone.

Notes:

Ensure all formulas are correctly entered in Google Sheets.

You can create the income statement in a table or format that you'd prefer but make sure all entries are labeled correctly.

Double$-$check your calculations for accuracy.