Adaptive Solutions Online

Eight-Year Financial Projection for Product X 26/03/20

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Sales 42,524,207 45,222,900 48,092,858 51,144,951 54,390,737 57,842,510 61,513,340 65,417,130
Costs of Goods 29,809,469 31,701,253 33,713,093 35,852,611 38,127,907 40,547,599 43,120,851 45,857,408
Gross Margin 12714738 13521647 14379765 15292340 16262830 17294910 18392489 19559722
Expenses
Advertising 3,190,816 3,393,217 3,608,464 3,837,371 4,080,805 4,339,688 4,615,000 4,907,785
Maintenance 500,000 625,000 430,000 525,000 550,000 450,000 400,000 400,000
Rent 1,050,000 1,113,000 1,179,780 1,250,567 1,325,601 1,405,137 1,489,445 1,578,812
Salaries 5,953,389 6,331,206 6,733,000 7,160,293 7,614,703 8,097,951 8,611,868 9,158,398
Shipping 1,445,823 1,537,579 1,635,157 1,738,928 1,849,285 1,966,645 2,091,454 2,224,182
Supplies 467,766 497,452 529,021 562,594 598,298 636,268 676,647 719,588
Web Services 75,000 80,250 85,868 91,878 98,310 105,191 112,555 120,434
Total Expenses 12,682,794 13,577,704 14,201,291 15,166,632 16,117,002 17,000,881 17,996,968 19,109,199

Operating Income 31,944 - 56,057 178,474 125,708 145,828 294,030 395,520 450,523
Income Tax 11,180 0 62,466 43,998 51,040 102,910 138,432 157,683
Net Income 20,764 - 56,057 116,008 81,710 94,788 191,119 257,088 292,840

Assumptions
Unit sold in prior year 242,847
Unit cost $ 122.75
Annual Sales Growth 3.50%
Annual Price Increase 2.75%
Margin 29.90%
 Projected Net Income
Product X
350,000

300,000

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Net Income

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50,000

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(100,000)
Adaptive Solutions Online
Eight-Year Financial Projection for Product X 26/03/20

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Sales 42,524,207 45,993,119 49,745,008 53,802,957 58,191,933 62,938,940 68,073,184 73,626,254
Costs of Goods 29,809,469 32,241,177 34,871,251 37,715,873 40,792,545 44,120,197 47,719,302 51,612,004
Gross Margin 12714738 13751943 14873757 16087084 17399388 18818743 20353882 22014250
Expenses
Advertising 3,190,816 3,450,984 3,732,376 4,036,722 4,365,895 4,721,921 5,106,989 5,523,469
Maintenance 500,000 625,000 430,000 525,000 550,000 450,000 400,000 400,000
Rent 1,050,000 1,113,000 1,179,780 1,250,567 1,325,601 1,405,137 1,489,445 1,578,812
Salaries 5,953,389 6,439,037 6,964,301 7,532,414 8,146,871 8,811,452 9,530,246 10,307,676
Shipping 1,445,823 1,563,766 1,691,330 1,829,301 1,978,526 2,139,924 2,314,488 2,503,293
Supplies 467,766 505,924 547,195 591,833 640,111 692,328 748,805 809,889
Web Services 75,000 80,250 85,868 91,878 98,310 105,191 112,555 120,434
Total Expenses 12,682,794 13,777,961 14,630,850 15,857,714 17,105,313 18,325,953 19,702,528 21,243,572

Operating Income 31,944 - 26,018 242,908 229,370 294,075 492,790 651,354 770,679
Income Tax 11,180 0 85,018 80,280 102,926 172,477 227,974 269,737
Net Income 20,764 - 26,018 157,890 149,091 191,149 320,314 423,380 500,941

Assumptions
Unit sold in prior year 242,847
Unit cost $ 122.75
Annual Sales Growth 4.50%
Annual Price Increase 3.50%
Margin 29.90%
Adaptive Solutions Online
Eight-Year Financial Projection for Product X 26/03/20

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Sales 42,524,207 44,023,186 45,575,003 47,181,522 48,844,670 50,566,445 52,348,912 54,194,211
Costs of Goods 29,809,469 30,860,253 31,948,077 33,074,247 34,240,114 35,447,078 36,696,587 37,990,142
Gross Margin 12714738 13162932 13626926 14107275 14604556 15119367 15652325 16204069
Expenses
Advertising 3,190,816 3,303,239 3,419,625 3,540,114 3,664,850 3,793,983 3,927,668 4,066,066
Maintenance 500,000 625,000 430,000 525,000 550,000 450,000 400,000 400,000
Rent 1,050,000 1,113,000 1,179,780 1,250,567 1,325,601 1,405,137 1,489,445 1,578,812
Salaries 5,953,389 6,163,246 6,380,500 6,605,413 6,838,254 7,079,302 7,328,848 7,587,190
Shipping 1,445,823 1,496,788 1,549,550 1,604,172 1,660,719 1,719,259 1,779,863 1,842,603
Supplies 467,766 484,255 501,325 518,997 537,291 556,231 575,838 596,136
Web Services 75,000 80,250 85,868 91,878 98,310 105,191 112,555 120,434
Total Expenses 12,682,794 13,265,778 13,546,648 14,136,141 14,675,025 15,109,104 15,614,217 16,191,240

Operating Income 31,944 - 102,846 80,278 - 28,866 - 70,468 10,263 38,108 12,829
Income Tax 11,180 0 28,097 - 10,103 - 24,664 3,592 13,338 4,490
Net Income 20,764 - 102,846 52,180 - 18,763 - 45,804 6,671 24,770 8,339

Assumptions
Unit sold in prior year 242,847
Unit cost $ 122.75
Annual Sales Growth 2.50%
Annual Price Increase 1.00%
Margin 29.90%
Adaptive Solutions Online
Eight-Year Financial Projection for Product X 26/03/20

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Sales 42,524,207 45,320,174 48,299,975 51,475,699 54,860,226 58,467,286 62,311,510 66,408,491
Costs of Goods 29,809,469 31,769,442 33,858,283 36,084,465 38,457,018 40,985,567 43,680,368 46,552,353
Gross Margin 12714738 13550732 14441693 15391234 16403208 17481718 18631141 19856139
Expenses
Advertising 3,190,816 3,400,513 3,623,998 3,862,177 4,116,017 4,386,546 4,674,863 4,982,137
Maintenance 500,000 625,000 430,000 525,000 550,000 450,000 400,000 400,000
Rent 1,050,000 1,113,000 1,179,780 1,250,567 1,325,601 1,405,137 1,489,445 1,578,812
Salaries 5,953,389 6,344,824 6,761,997 7,206,598 7,680,432 8,185,420 8,723,611 9,297,189
Shipping 1,445,823 1,540,886 1,642,199 1,750,174 1,865,248 1,987,888 2,118,591 2,257,889
Supplies 467,766 498,522 531,300 566,233 603,462 643,140 685,427 730,493
Web Services 75,000 80,250 85,868 91,878 98,310 105,191 112,555 120,434
Total Expenses 12,682,794 13,602,995 14,255,141 15,252,627 16,239,069 17,163,323 18,204,492 19,366,953

Operating Income 31,944 - 52,263 186,552 138,607 164,138 318,396 426,649 489,186
Income Tax 11,180 0 65,293 48,513 57,448 111,439 149,327 171,215
Net Income 20,764 - 52,263 121,258 90,095 106,690 206,957 277,322 317,971

Assumptions
Unit sold in prior year 242,847
Unit cost $ 122.75
Annual Sales Growth 1.50%
Annual Price Increase 5.00%
Margin 29.90%