This pro-forma income statement projects the financial performance of Fruit Shack Enterprise over three years. In year 1, it is projected to have sales of $188,340 and net profit after tax of $5,138. In year 2, sales are projected to increase to $197,757 and net profit after tax to $20,447. By year 3, sales are projected to reach $213,578 and net profit after tax to further increase to $38,394, with accumulated net profit of $63,979 over the three year period.

1. FRUIT SHACK ENTERPRISE
PRO-FORMA INCOME STATEMENT
Year 1
Sales
Year 2
Year 3
188,340
197,757
213,578
66,467
66,466
66,466
5,400
71,867
5,400
71,866
5,400
71,866
116,473
125,891
141,712
68,655
68,655
68,655
3,000
3,000
3,000
1,580
1,580
671
503
Less: Cost of Sales
Opening stock
Purchases
Less: Ending Stock
Carriage Inward & Duty
Gross Profit
Less: Enpenditure
Administrative Expenditure
Marketing Expenditure
Other Expenditure
Business Registration &
Licences
Insurance & Road Tax for Motor
Vehicle
Other Pre-Operations
Expenditure
Interest on Hire-Purchase
Interest on Loan
200
1,580
3,075
839
Depreciation of Fixed Assets
12,242
9,794
7,835
Operations Expenditure
21,744
21,744
21,744
111,335
105,444
103,317
Net Profit Before Tax
5,138
20,447
38,394
Tax
Net Profit After Tax
Accumulated Net Profit
0
5,138
5,138
0
20,447
25,585
0
38,394
63,979
Total Expenditure