Pro-Forma Income Statement

XYZ, Inc.

For 2021 through 2023

(all numbers in $000)

REVENUE

2021

2022

2023

2024

Gross sales

$500

$650

$720

$850

Less sales returns and allowances

200

230

280

320

Net Sales

$300

$420

$440

$530

COST OF SALES

Beginning inventory

$350

$360

$420

$435

Plus goods purchased / manufactured

120

165

185

190

Total Goods Available

$470

$525

$605

$625

Less ending inventory

360

420

435

440

Total Cost of Goods Sold

$110

$105

$170

$185

Gross Profit (Loss)

$190

$315

$270

$345

OPERATING EXPENSES

Selling

Salaries and wages

$35

$41

$46

$52

Commissions

12

14

16

18

Advertising

10

12

14

20

Depreciation

14

15

16

16

Other

5

6

6

7

Total Selling Expenses

$76

$88

$98

$113

General/Administrative

Salaries and wages

$12

$14

$16

$18

Employee benefits

4

5

5

6

Payroll taxes

2

3

3

4

Insurance

6

6

7

7

Rent

8

8

9

9

Utilities

2

2

2

3

Depreciation & amortization

3

4

4

5

Office supplies

1

1

1

1

Travel & entertainment

3

3

3

4

Postage

1

1

1

2

Equipment maintenance & rental

0

0

1

1

Interest

0

1

1

2

Furniture & equipment

3

4

4

5

Total General/Administrative Expenses

$45

$52

$57

$67

Total Operating Expenses

$121

$140

$155

$180

Net Income Before Taxes

$69

$175

$115

$165

Taxes on income

22

32

26

28

Net Income After Taxes

$47

$143

$89

$137

Extraordinary gain or loss

$0

$0

$43

$0

Income tax on extraordinary gain

0

0

12

0

NET INCOME (LOSS)

$47

$143

$120

$137