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>>PROJECTED INCOME STATEMENT
AYZdotLLC intends to deploy its funding to maximize growth and profitability. In the Income Statement table below, gross margin equals sales
minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation and amortization) equals gross margin
minus operating expenses.
PRO FORMA INCOME STATEMENT
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $886,475 $1,436,090 $1,981,804 $2,378,164 $2,853,797
Subtotal Cost of Revenue $174,034 $281,935 $389,070 $466,884 $560,261
Wholesale Discount $88,648 $143,609 $198,180 $237,816 $285,380
Total Cost of Revenue $262,682 $425,544 $587,251 $704,701 $845,641
Gross Margin $623,794 $1,010,545 $1,394,553 $1,673,463 $2,008,156
Gross Margin/Revenue 70.37% 70.37% 70.37% 70.37% 70.37%
Expenses
Rent $120,000 $123,000 $126,075 $129,227 $132,458
General Insurance Liability $6,600 $6,765 $6,934 $7,107 $7,285
Supplies $12,000 $24,000 $24,600 $25,215 $25,845
Utilities $9,000 $18,000 $18,450 $18,911 $19,384
Website Hosting/Updates $2,400 $2,460 $2,522 $2,585 $2,649
Marketing & Advertising $24,000 $36,000 $50,400 $65,520 $78,624
Professional Services $9,000 $9,225 $9,456 $9,692 $9,934
Travel & Fuel $18,000 $18,450 $18,911 $19,384 $19,869
Facility Maintenance $7,200 $14,400 $14,760 $15,129 $15,507
Miscellaneous $2,400 $2,460 $2,522 $2,585 $2,649
Financial/POS $13,297 $21,541 $29,727 $35,672 $42,807
Depreciation & Amortization $14,700 $14,700 $14,700 $6,800 $6,800
Payroll Taxes & Benefits $38,588 $67,716 $88,279 $103,036 $111,000
Total Personnel $346,083 $607,320 $791,740 $924,086 $995,518
Total Operating Expenses $623,269 $966,038 $1,199,076 $1,364,949 $1,470,330
Profit Before Interest and Taxes $525 $44,508 $195,477 $308,514 $537,826
EBITDA $15,225 $59,208 $210,177 $315,314 $544,626
Interest Expense $8,795 $6,992 $5,116 $3,164 $1,132
Taxes Incurred $0 $6,142 $39,976 $64,124 $112,706
Net Profit ($8,270) $31,374 $150,385 $241,227 $423,989
Net Profit/Revenue -0.93% 2.18% 7.59% 10.14% 14.86%
Income Statement Assumptions: (1) Depreciation is based on 10 years; (2) Start-up cost is amortized over 3 years; (3) Total payroll taxes
are 11.15%; (4) Company taxes are based on 21%.
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