Income Statement Example for J&B Inc
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| J&B INCORPORATED FORECASTED INCOME STATEMENT FOR YEARS ENDING ... |
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| Ending April 200X * |
Ending April 200Y |
Ending April 200Z |
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| Total Revenue from Sales (note 1) | $582,401 | $673,775 | $784,411 |
| Cost of Goods Sold (note 2) | $130,191 | $146,378 | $152,846 |
| GROSS MARGIN ** | $452,210 | $527,397 | $631,566 |
| OPERATING EXPENSES: | |||
| Advertising Expense (note 3) | $130,000 | $150,000 | $170,000 |
| Wages & Employee Benefits (note 4) | $122,366 | $136,153 | $167,421 |
| Casual Labor (note 5) | $ 2,400 | $ 3,000 | $ 3,600 |
| Office Supplies (note 6) | $ 1,500 | $ 1,715 | $ 1,908 |
| Rent Expense (note 7) | $ 12,000 | $ 12,600 | $ 13,230 |
| Telephone/Fax Expense (note 8) | $ 3,600 | $ 3,840 | $ 4,080 |
| Professional Services (note 9) | $ 7,000 | $ 3,500 | $ 4,000 |
| Insurance Expenses (note 10) | $ 1,500 | $ 1,650 | $ 1,815 |
| Toll-free Charges above Variable Cost (note 11) | $ 15,685 | $ 20,706 | $ 25,408 |
| Bad Debt Expense (note 12) | $ 5,824 | $ 6,738 | $ 7,844 |
| Interest on Operating Loan (note 13) | $ 2,000 | $ nil | $ nil |
| Internet Storage & Accounts Expense (note 14) | $ 2,550 | $ 2,700 | $ 2,865 |
| Miscellaneous Expenses (note 15) | $ 2,400 | $ 2,600 | $ 2,800 |
| Depreciation Expense - Equipment (note 16) | $ 3,142 | $ 4,392 | $ 6,392 |
| Depreciation Expense- Furniture (note 17) | $ 606 | $ 906 | $ 1,306 |
| Amortization of Initial Development Costs (note 18) | $ 15,924 | $ 15,924 | $ 15,924 |
| Amortization of Future Development Costs (note 19) | $ 24,720 | $ 55,215 | $ 86,575 |
| TOTAL OPERATING EXPENSES ** | $353,218 | $421,638 | $515,168 |
| Net Income Before Taxes | $ 98,992 | $105,759 | $116,397 |
| Less: Taxes (note 20) | $ 29,698 | $ 31,728 | $ 34,919 |
| NET INCOME AFTER TAXES | $ 69,294 | $ 74,032 | $ 81,478 |
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* Ending April 200X refers to J&B's forecasted revenues and expenses from April 200W to April 200X. It does not however, include the expected expenses incurred during the product's five month development phase. For further information regarding the Company's Initial Development Costs, please refer to NOTE 18. |
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| ** Numbers are rounded | |||