Homework Help is Here – Start Your Trial Now!
Business
Finance
Use the following (very simplified) numbers in creating your pro-forma income statement: Sales start at $1000 for January and increase by 10% per month (so, February sales will be $1100, March sales will be $1210, etc.). The venture uses a markup of 100%, so the cost of goods is 50% of the sales amount (so, January cost of goods is $500, February cost of goods is $550, etc.). The venture pays a salary of $500/month for the first 6 months, then hires an additional employee in July and pays $1000/month for the rest of the year. The venture pays a total overhead cost (including rent, utilities, and insurance) of $50/month. Payroll taxes start out at $20/month for January-June, then increase to $40/month for July-December. The venture's assets depreciate by $10/month. Office expenses are $15/month for January-April, increase to $25/month for May-August, and go back down to $15/month for September-December

Use the following (very simplified) numbers in creating your pro-forma income statement: Sales start at $1000 for January and increase by 10% per month (so, February sales will be $1100, March sales will be $1210, etc.). The venture uses a markup of 100%, so the cost of goods is 50% of the sales amount (so, January cost of goods is $500, February cost of goods is $550, etc.). The venture pays a salary of $500/month for the first 6 months, then hires an additional employee in July and pays $1000/month for the rest of the year. The venture pays a total overhead cost (including rent, utilities, and insurance) of $50/month. Payroll taxes start out at $20/month for January-June, then increase to $40/month for July-December. The venture's assets depreciate by $10/month. Office expenses are $15/month for January-April, increase to $25/month for May-August, and go back down to $15/month for September-December

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
Use the following (very simplified) numbers in creating your pro-forma income statement: - **Sales** start at $1000 for January and increase by 10% per month (so, February sales will be $1100, March sales will be $1210, etc.). - The venture uses a **markup of 100%**, so the cost of goods is 50% of the sales amount (so, January cost of goods is $500, February cost of goods is $550, etc.). - The venture pays a **salary of $500/month** for the first 6 months, then hires an additional employee in July and pays **$1000/month** for the rest of the year. - The venture pays a total **overhead cost** (including rent, utilities, and insurance) of **$50/month**. - **Payroll taxes** start out at **$20/month** for January-June, then increase to **$40/month** for July-December. - The venture's assets **depreciate by $10/month**. - **Office expenses** are $15/month for January-April, increase to **$25/month** for May-August, and then go back down to **$15/month** for September-December.
Transcribed Image Text:Use the following (very simplified) numbers in creating your pro-forma income statement: - **Sales** start at $1000 for January and increase by 10% per month (so, February sales will be $1100, March sales will be $1210, etc.). - The venture uses a **markup of 100%**, so the cost of goods is 50% of the sales amount (so, January cost of goods is $500, February cost of goods is $550, etc.). - The venture pays a **salary of $500/month** for the first 6 months, then hires an additional employee in July and pays **$1000/month** for the rest of the year. - The venture pays a total **overhead cost** (including rent, utilities, and insurance) of **$50/month**. - **Payroll taxes** start out at **$20/month** for January-June, then increase to **$40/month** for July-December. - The venture's assets **depreciate by $10/month**. - **Office expenses** are $15/month for January-April, increase to **$25/month** for May-August, and then go back down to **$15/month** for September-December.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS