Pro Forma Income Statement For Service Company

A company s income statement is one of its most important financial documents.

Pro forma income statement for service company. For my purposes here a pro forma income statement is similar to a historical income statement except it projects the future rather than tracks the past. Our comprehensive pro forma excel model has helped thousands of entrepreneurs build detailed financial models get funded and get launched. Profit is the combination of all revenue and losses and is described as. These statements are then presented to the management of the company and to the investors and creditors.

Therefore the income statement will be a basic breakdown of income and expenses. Full year pro forma projects the company s financial statements and earnings potential based on year to date results and few assumptions. Recurring and one time sales models. To assist you in this endeavor an excel worksheet containing xyz s 2014 income statement and balance sheet has been provided.

According to your pro forma annual income statement it will be 44 000 next year. Service companies have the most basic income statement of all the types of companies. 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. It details the amount of money made and spent within a certain period.

Assume the current year is 2015. Pro forma is a fancy word for future or projected. Software services mfg etc. A pro forma income statement is a projected income statement.

Pro forma income statement template pro forma income statement template microsoft excel what is an income statement. Since service based companies do not sell a product the income statement will not contain cost of goods sold. They are used to help make decisions and also to give investors an idea of the financial status of a company under different conditions. This experiential exercise involves creating a pro forma balance sheet and a pro forma income statement for xyz company.

As a financial analyst you are expected to create these pro forma financial statement projections of. Pro forma income statement balance sheet for xyz company. 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. A pro forma statement is an important tool for planning future operations.

Enter business plan assumptions in a step by step format. Pro forma in this context means projected. All reports are automatically calculated and produced.