LEE'S COFFEE SHOP

PROJECTED INCOME STATEMENT

FOR THE YEAR ENDED DEC. 31, 2019

JANUARY FEBRUARY MARCH

SALES 2,196,000.00 2,196,000.00 2,196,000.00
Less: COST OF SALES (60%) 1,317,600.00 1,317,600.00 1,317,600.00
GROSS INCOME 878,400.00 878,400.00 878,400.00
Less: EXPENSES
Salaries and Wages 108,028.00 108,028.00 108,028.00
Employee Benefits 10,020.40 10,020.40 10,020.40
Utilities Expense 10,821.00 10,821.00 10,821.00
Installation Cost 13,300.00 - -
Supplies Expense 700.00 700.00 700.00
Interest Expense 3,000.00 3,000.00 3,000.00
Advertising Expense 43,920.00 43,920.00 43,920.00
Legal Expense 10,000.00 - -
Taxes and Licenses 65,880.00 65,880.00 65,880.00
Depreciation Expense 14,533.31 14,533.31 14,533.31
Miscellaneous Expense 17,568.00 17,568.00 17,568.00
TOTAL EXPENSES 297,770.71 274,470.71 274,470.71
NET INCOME BEFORE TAX 580,629.29 603,929.29 603,929.29
Tax 174,188.79 181,178.79 181,178.79
NET INCOME AFTER TAX 406,440.51 422,750.51 422,750.51
LEE'S COFFEE SHOP
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDED DEC. 31, 2019

APRIL MAY JUNE

SALES 2,196,000.00 2,196,000.00 2,196,000.00
Less: COST OF SALES (60%) 1,317,600.00 1,317,600.00 1,317,600.00
GROSS INCOME 878,400.00 878,400.00 878,400.00
Less: EXPENSES
Salaries and Wages 108,028.00 108,028.00 108,028.00
Employee Benefits 10,020.40 10,020.40 10,020.40
Utilities Expense 10,821.00 10,821.00 10,821.00
Installation Cost - - -
Supplies Expense 700.00 700.00 700.00
Interest Expense 3,000.00 3,000.00 3,000.00
Advertising Expense 43,920.00 43,920.00 43,920.00
Legal Expense - - -
Taxes and Licenses 65,880.00 65,880.00 65,880.00
Depreciation Expense 14,533.31 14,533.31 14,533.31
Miscellaneous Expense 17,568.00 17,568.00 17,568.00
TOTAL EXPENSES 274,470.71 274,470.71 274,470.71
NET INCOME BEFORE TAX 603,929.29 603,929.29 603,929.29
Tax 181,178.79 181,178.79 181,178.79
NET INCOME AFTER TAX 422,750.51 422,750.51 422,750.51
LEE'S COFFEE SHOP
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDED DEC. 31, 2019

JULY AUGUST SEPTEMBER

SALES 2,196,000.00 2,196,000.00 2,196,000.00
Less: COST OF SALES (60%) 1,317,600.00 1,317,600.00 1,317,600.00
GROSS INCOME 878,400.00 878,400.00 878,400.00
Less: EXPENSES
Salaries and Wages 108,028.00 108,028.00 108,028.00
Employee Benefits 10,020.40 10,020.40 10,020.40
Utilities Expense 10,821.00 10,821.00 10,821.00
Installation Cost - - -
Supplies Expense 700.00 700.00 700.00
Interest Expense 3,000.00 3,000.00 3,000.00
Advertising Expense 43,920.00 43,920.00 43,920.00
Legal Expense - - -
Taxes and Licenses 65,880.00 65,880.00 65,880.00
Depreciation Expense 14,533.31 14,533.31 14,533.31
Miscellaneous Expense 17,568.00 17,568.00 17,568.00
TOTAL EXPENSES 274,470.71 274,470.71 274,470.71
NET INCOME BEFORE TAX 603,929.29 603,929.29 603,929.29
Tax 181,178.79 181,178.79 181,178.79
NET INCOME AFTER TAX 422,750.51 422,750.51 422,750.51
LEE'S COFFEE SHOP
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDED DEC. 31, 2019

OCTOBER NOVEMBER DECEMBER

SALES 2,635,200.00 2,635,200.00 2,635,200.00
Less: COST OF SALES (60%) 1,581,120.00 1,581,120.00 1,581,120.00
GROSS INCOME 1,054,080.00 1,054,080.00 1,054,080.00
Less: EXPENSES
Salaries and Wages 108,028.00 108,028.00 108,028.00
Employee Benefits 10,020.40 10,020.40 10,020.40
Utilities Expense 10,821.00 10,821.00 10,821.00
Installation Cost - - -
Supplies Expense 700.00 700.00 700.00
Interest Expense 3,000.00 3,000.00 3,000.00
Advertising Expense 52,704.00 52,704.00 52,704.00
Legal Expense - - -
Taxes and Licenses 79,056.00 79,056.00 79,056.00
Depreciation Expense 14,533.31 14,533.31 14,533.31
Miscellaneous Expense 21,081.60 21,081.60 21,081.60
TOTAL EXPENSES 299,944.31 299,944.31 299,944.31
NET INCOME BEFORE TAX 754,135.69 754,135.69 754,135.69
Tax 226,240.71 226,240.71 226,240.71
NET INCOME AFTER TAX 527,894.99 527,894.99 527,894.99
Gross income is 40% of sales
Taxes and licenses are 3% of gross sale
Advertising is 2% of gross sales
A 12% promissory note for 300000
miscellaneous expenses is 2% of gross income
income tax is 30%
peak season months are:
Oct.- Dec.; where sales are 120%^ of the regular sales amount
Jan-Sept. 100% (same as January)
ASSUMPTIONS

1. GROSS INCOME 40%

COST RATIO 60%
2. TAXES AND LICENSES 3%
3. ADVERTISING 2%
4. Principal 300,000.00
Interest Rate 12%
Interest Expense 3,000.00
5. Miscellaneous Expense is 2% of Gross Income 2%
6. Income tax is 30% 30%

CASH COLLECTIONS Cash 30%

Collected after 30 days 70%
PURCHASES PAYMENT Cash 40%
Paid after 30 days 60%
INVENTORY REQUIREMENT Next month's cost of sales 10%
OUTPUT TAX 12%
INPUT TAX Purchases plus Expenses

JANUARY FEBRUARY APRIL

100% 100% 100%
MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
100% 100% 100% 100% 100% 120% 120% 120%
CEMBER
 ESTIMATE
D LIFE SALVAGE DEPRECIATIO
ITEM COST (YEARS) VALUE N EXPNSE
BUILDING 1,684,000.00 30 20,000.00 55,466.67
EQUIPMENT -
DINNERWARES/CUTLERIES/GLAS 157,865.00 5 - 31,573.00
OTHER KITCHEN WARE 14,050.00 5 - 2,810.00
TABLES AND CHAIRS 118,250.00 5 2,000.00 23,250.00
OFFICE COMPUTER 81,000.00 5 3,000.00 15,600.00
OVEN 69,000.00 5 1,000.00 13,600.00
WATER DISPENSER 20,000.00 5 - 4,000.00
FIRE EXTINGUISHER 12,000.00 2 1,000.00 5,500.00
GENERATOR 115,000.00 5 2,000.00 22,600.00

TOTAL ANNUAL DEPRECIATION 174,399.67

MONTHLY DEPRECIATION EXPENSE 14,533.31
 JANUARY FEBRUARY MARCH APRIL
SALES 2,196,000.00 2,196,000.00 2,196,000.00 2,196,000.00
CASH SALES 658,800.00 658,800.00 658,800.00 658,800.00
COLLECTIONS
AFTER 30 DAYS 1,537,200.00 1,537,200.00 1,537,200.00

CASH RECEIPTS 658,800.00 2,196,000.00 2,196,000.00 2,196,000.00

 MAY JUNE JULY AUGUST SEPTEMBER
2,196,000.00 2,196,000.00 2,196,000.00 2,196,000.00 2,196,000.00
658,800.00 658,800.00 658,800.00 658,800.00 658,800.00

1,537,200.00 1,537,200.00 1,537,200.00 1,537,200.00 1,537,200.00

2,196,000.00 2,196,000.00 2,196,000.00 2,196,000.00 2,196,000.00

OCTOBER NOVEMBER DECEMBER
2,635,200.00 2,635,200.00 2,635,200.00
790,560.00 790,560.00 790,560.00

1,537,200.00 1,844,640.00 1,844,640.00

2,327,760.00 2,635,200.00 2,635,200.00

 JANUARY FEBRUARY MARCH APRIL
PROJECTED SALES 1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00
REQUIRED INVENTORY 131,760.00 131,760.00 131,760.00 131,760.00
TOTAL REQUIREMENTS 1,449,360.00 1,449,360.00 1,449,360.00 1,449,360.00
BEGINNING INVENTORY - 131,760.00 131,760.00 131,760.00

BUDGETED PURCHASES 1,449,360.00 1,317,600.00 1,317,600.00 1,317,600.00

JANUARY FEBRUARY MARCH APRIL

BUDGETED PURCHASES 1,449,360.00 1,317,600.00 1,317,600.00 1,317,600.00
CASH PURCHASES 579,744.00 527,040.00 527,040.00 527,040.00
PURCHASES PAID AFTER 30
DAYS 869,616.00 790,560.00 790,560.00

CASH DISBURSEMENTS 579,744.00 1,396,656.00 1,317,600.00 1,317,600.00

 MAY JUNE JULY AUGUST SEPTEMBER
1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00
131,760.00 131,760.00 131,760.00 131,760.00 158,112.00
1,449,360.00 1,449,360.00 1,449,360.00 1,449,360.00 1,475,712.00
131,760.00 131,760.00 131,760.00 131,760.00 131,760.00

1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00 1,343,952.00

MAY JUNE JULY AUGUST SEPTEMBER

1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00 1,343,952.00
527,040.00 527,040.00 527,040.00 527,040.00 537,580.80

790,560.00 790,560.00 790,560.00 790,560.00 790,560.00

1,317,600.00 1,317,600.00 1,317,600.00 1,317,600.00 1,328,140.80

OCTOBER NOVEMBER DECEMBER
1,581,120.00 1,581,120.00 1,581,120.00
158,112.00 158,112.00 158,112.00
1,739,232.00 1,739,232.00 1,739,232.00
158,112.00 158,112.00 158,112.00

1,581,120.00 1,581,120.00 1,581,120.00

OCTOBER NOVEMBER DECEMBER

1,581,120.00 1,581,120.00 1,581,120.00
632,448.00 632,448.00 632,448.00

806,371.20 948,672.00 948,672.00

1,438,819.20 1,581,120.00 1,581,120.00

 JANUARY FEBRUARY MARCH
SALES 2,196,000.00 2,196,000.00 2,196,000.00
VAT Output 263,520.00 263,520.00 263,520.00

Expenses:
Utilities Expense 10,821.00 10,821.00 10,821.00
Installation Cost 13,300.00 - -
Supplies Expense 700.00 700.00 700.00
Interest Expense 3,000.00 3,000.00 3,000.00
Advertising Expense 43,920.00 43,920.00 43,920.00
Legal Expense 10,000.00 - -
Taxes and Licenses 65,880.00 65,880.00 65,880.00
Miscellaneous Expense 17,568.00 17,568.00 17,568.00
TOTAL EXPENSES 165,189.00 141,889.00 141,889.00
Purchases 1,449,360.00 1,317,600.00 1,317,600.00
TOTAL 1,614,549.00 1,459,489.00 1,459,489.00

VAT Input 193,745.88 175,138.68 175,138.68

VAT PAYABLE 69,774.12 88,381.32 88,381.32

APRIL MAY JUNE
2,196,000.00 2,196,000.00 2,196,000.00
263,520.00 263,520.00 263,520.00

10,821.00 10,821.00 10,821.00

- - -
700.00 700.00 700.00
3,000.00 3,000.00 3,000.00
43,920.00 43,920.00 43,920.00
- - -
65,880.00 65,880.00 65,880.00
17,568.00 17,568.00 17,568.00
141,889.00 141,889.00 141,889.00
1,317,600.00 1,317,600.00 1,317,600.00
1,459,489.00 1,459,489.00 1,459,489.00

175,138.68 175,138.68 175,138.68

88,381.32 88,381.32 88,381.32

JULY AUGUST SEPTEMBER
2,196,000.00 2,196,000.00 2,196,000.00
263,520.00 263,520.00 263,520.00

10,821.00 10,821.00 10,821.00

- - -
700.00 700.00 700.00
3,000.00 3,000.00 3,000.00
43,920.00 43,920.00 43,920.00
- - -
65,880.00 65,880.00 65,880.00
17,568.00 17,568.00 17,568.00
141,889.00 141,889.00 141,889.00
1,317,600.00 1,317,600.00 1,343,952.00
1,459,489.00 1,459,489.00 1,485,841.00

175,138.68 175,138.68 178,300.92

88,381.32 88,381.32 85,219.08

OCTOBER NOVEMBER DECEMBER
2,635,200.00 2,635,200.00 2,635,200.00
316,224.00 316,224.00 316,224.00

10,821.00 10,821.00 10,821.00

- - -
700.00 700.00 700.00
3,000.00 3,000.00 3,000.00
52,704.00 52,704.00 52,704.00
- - -
79,056.00 79,056.00 79,056.00
21,081.60 21,081.60 21,081.60
167,362.60 167,362.60 167,362.60
1,581,120.00 1,581,120.00 1,581,120.00
1,748,482.60 1,748,482.60 1,748,482.60

209,817.91 209,817.91 209,817.91

106,406.09 106,406.09 106,406.09