The document contains sales forecasts and pro-forma income statements for Mamma's Pizzeria from 2011-2014. The 1st quarter sales forecast shows sales declining from 30 to 8 units over the year. The income statements show gross sales increasing from $80,000 in 2012 to $110,000 in 2014, with net income also increasing over the years from $978 in 2012 to $27,005 in 2014. Operating expenses remained mostly stable while revenue increased.

1. 1st Quater 2nd Quater 3rd Quarter 4th Quarter
Sale Forecast for the First Year
30
23
15
8
0
Sales

2. Pro-Forma Income Statement
Mamma’s Pizzeria
For 2011 through 2014
REVENUE 2012 2013 2014
Gross sales $80,000 $100,000 $110,000
Less sales returns and allowances 2,000 1,500 2,000
Net Sales $78,000 $98,500 $108,000
COST OF SALES
Beginning inventory $10,000 $12,000 $12,000
Plus goods purchased / manufactured 2,000 2,000 2,000
Total Goods Available $12,000 $14,000 $14,000
Less ending inventory 1,000 2,000 1,000
Total Cost of Goods Sold $11,000 $12,000 $13,000
Gross Profit (Loss) $67,000 $86,500 $95,000
OPERATING EXPENSES
Selling
Salary $6,000 $8,000 $8,000
Advertising 2,000 3,000 3,000
Other 1,000 0 0
Total Selling Expenses $9,000 $11,000 $11,000
General/Administrative
Insurance 12,000 12,000 12,000
Rent 24,000 24,000 24,000
Utilities 20,000 20,000 20,000
Interest 0 0 0
Furniture & equipment 1,000 1,500 1,000
Total General/Administrative Expenses $57,000 $57,500 $57,000
Total Operating Expenses $66,000 $68,500 $68,000
Net Income Before Taxes $1,000 $18,000 $27,000
Taxes on income 22 32 26
Net Income After Taxes $978 $17,968 $26,974
Extraordinary gain or loss $0 $0 $43
Income tax on extraordinary gain 0 0 12
NET INCOME (LOSS) $978 $17,968 $27,005