Financial Consideration
51
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Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$2,147,600
$10,000,000
$20,000,000
Direct Cost of Sales
$1,771,930
$8,250,000
$16,500,000
Other Costs of Sales
$0
$0
$0
Total Cost of Sales
$1,771,930
$8,250,000
$16,500,000
Gross Margin
$375,670
$1,750,000
$3,500,000
Gross Margin %
17.49%
17.50%
17.50%
Expenses
Payroll
$228,000
$570,000
$900,000
Marketing/Promotion
$120,000
$150,000
$200,000
Depreciation
$0
$0
$0
Rent
$60,000
$180,000
$360,000
Utilities
$12,000
$36,000
$72,000
Insurance
$500
$1,500
$3,000
Payroll Taxes
$34,200
$85,500
$135,000
Others
$60,000
$300,000
$300,000
Total Operating Expenses
$514,700
$1,323,000
$1,970,000
Profit Before Interest and Taxes
($139,030)
$427,000
$1,530,000
EBITDA
($139,030)
$427,000
$1,530,000
Interest Expense
$0
$0
$0
Taxes Incurred
$0
$0
$0
Net Profit
($139,030)
$427,000
$1,530,000
Net Profit/Sales
-6.47%
4.27%
7.65%
