This week, when thinking about your marketing plan, you should be working on your first year's income statement.This income statement should be prepared for each quarter of the year, and should include gross revenues, cost of goods sold, gross profit, operating expenses which include marketing expenses such as selling and advertising and any development expenses that could be incurred, and finally operating profit.It is not necessary to estimate taxes or show net profit.Your income statement need only reflect the INCREMENTAL improvements in income that your marketing plan will contribute to your publicly traded firm.In other words, if your firm has an annual operating profit of $10,000,000.00 and your marketing plan will add $1,000,000 operating profit, you can show only the $1,000,000.The most important aspect of this part of your marketing plan is developing your forecast, so be sure to review the techniques for forecasting that were covered in Ch. 3.