Pro Forma Income Statement Business Plan

So when you create next year s budget you can include that extra 7 000 maybe spending 4 000 over the course of the year to pay down the principal on a loan while adding 3 000 to savings.

Pro forma income statement business plan. Also known as a profit and loss statement this section details the sales cost of sales profitability and other vital financial information to stakeholders. An income statement is the same as a profit and loss statement a financial statement that shows sales cost of sales gross margin operating expenses and profits. Pro forma income statement s year 1 by month jul aug sep oct nov dec jan feb mar apr may jun licenses 5 000 5 000 5 000 5 000 5 000 5 000 10 000 maintenance 8 125. Bplans glossary a pro forma income statement is a projected income statement.

Pro forma profit and loss 2010 2011 2012 sales 218 100 295 950 420 350 direct cost of sales 30 039 65 640 124 763 other cost of sales 0 0 0 total cost of sales 30 039 65 640 124 763 gross margin 188 061. According to your pro forma annual income statement it will be 44 000 next year. Pro forma in this context means projected. Pro forma financial statements follow.

It can also be used to indicate a potential upcoming change in the company such as an anticipated merger or acquisition. This area outlines the projected cash inflows and outflows the business expects to generate from operating financing and investing activities during a specific timeframe. For example they can determine whether expenses can be expected to run higher in the first quarter of the year than in the second. Pro forma income statement is the statement prepared by the business entity to prepare the projections of income and expenses which they expect to have in the future by following certain assumptions such as competition level in the market size of the market growth rate etc.

1 pro forma of historical profit and loss statement. Types of pro forma statement. They can also determine whether sales can be expected to run above average in let s say june. Read business terms glossary by.

Pro forma cash flow statement. Pro forma income statement.