Since his new plan would not be implemented until late 2018, Donovan wanted to project a statement of earnings for both fiscal 2018 and fiscal 2019 to assess the potential financial benefits of his decision. He anticipated that his existing revenues would increase each year by 5 per cent, regardless of the decision made. Donovan expected to pay tax of 30 per cent on any profits. All other expenses pertaining to the existing business would remain the same percentage of revenue with the exception of rent, insurance, depreciation, telephone-and-Internet, and wage expenses. Rent, insurance, depreciation, and telephone- and-Internet expenses would remain the same amount as in fiscal 2017 for current operations. Wages would increase by $2,000 per year. Donovan did not think it was necessary to project a statement of financial position