Question: The following data based on assumption for 2 years projection, Analysis the following income statement and state whether investor should invest the company or not

The following data based on assumption for 2 years projection, Analysis the following income statement and state whether investor should invest the company or not (250 words minimum)

YEAR 1

YEAR 2

Revenues

$ 2,995,000

$ 3,200,000

Cost of sales

1,894,000

2,100,000

Gross profit

$ 1,101,000

$ 1,100,000

Accounting

8,000

8,300

Advertising and promotion

17,000

11,000

Bank chargers

51,000

55,897

Compensation and benefits

197,546

234,985

Insurance

5,000

5,550

Lease, facilities

350,600

456,000

Legal and professional

15,900

15,900

Licenses and fees

10,000

10,000

maintenance

17,000

18,700

Miscellaneous

12,567

13,400

Security

500

500

Utilities

25,700

28,700

Website

2,000

2,000

Total operating expenses

$ 712,813

$ 860932

EBIDTA

388,187

239,068

Depreciation

(7,893)

(7,893)

Operating profit

380,294

231,175

Interest expense

(41,890)

(42,890)

Earnings before taxes

338,404

188,285

Income taxes

(18,567)

(19,879)

Net Income

319,837

168,406

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