Sweets Creation

Income Statement
For the year ended December 31, 2021

Sales 2,345,400.00
Less: Cost of Goods Sold 418,800.00
Gross Profit 1,926,600.00
Less: Operating Expense
Supplies Expense 502,305.00
Freight-out 60,000.00

Taxes and License Expense 156,862.00

Utilities Expense 58,788.00

Advertising Expense 5,000.00
Salaries Expense 239,236.00
Payroll Expense 19,964.00
Rent Expense 120,000.00
Depreciation Expense - Equipment 37,495.00
Depreciation Expense – Furniture & Fixtures 4,490.00
Depreciation Expense – Vehicle 45,000.00 1,249,140.00

Net Income before tax 677,460.00

Less: Income Tax Expense (30%) 203,238.00
Net Income after Tax: 474,222.00
 Sweets Creation
Income Statement
For the year ended December 31, 2022

Sales 2,626,848.00
Less: Cost of Goods Sold 469,056.00
Gross Profit 2,157,792.00
Less: Operating Expense
Supplies Expense 527,420.25
Freight-out 66,000.00

Taxes and License Expense 93,805.44

Utilities Expense 58,788.00

Advertising Expense 5,000.00
Salaries Expense 239,236.00
Payroll Expense 19,964.00
Rent Expense 120,000.00
Depreciation Expense - Equipment 37,495.00
Depreciation Expense – Furniture & Fixtures 4,490.00
Depreciation Expense – Vehicle 45,000.00 1,217,198.69

Net Income before tax 940,593.31

Less: Income Tax Expense (30%) 282,177.99
Net Income after Tax: 658,415.32
Assumptions:
1. Sales increase 12% in 2022
2. Cost of goods sold increase 12% in 2022
3. Freight-out increase 10% in 2022
4. Supplies expense increases 5% in 2022
5. Additional 15,000.00 fee annually for FDA. (taxes and licenses)
 Sweets Creation
Income Statement
For the year ended December 31, 2022

Sales 3.020,875.20
Less: Cost of Goods Sold 539,414.40
Gross Profit 2,481,460.80
Less: Operating Expense
Supplies Expense 564,339.67
Freight-out 75,900.00

Taxes and License Expense 105,626.26

Utilities Expense 58,788.00

Advertising Expense 5,000.00
Salaries Expense 239,236.00
Payroll Expense 19,964.00
Rent Expense 120,000.00
Depreciation Expense - Equipment 37,495.00
Depreciation Expense – Furniture & Fixtures 4,490.00
Depreciation Expense – Vehicle 45,000.00 1,275,838.93

Net Income before tax 1,205,621.87

Less: Income Tax Expense (30%) 361,686.56
Net Income after Tax: 843,933.31
Assumptions:
1. Sales increase 15% in 2023
2. Cost of goods sold increase 15% in 2023
3. Freight-out increase 15% in 2023
4. Supplies expense increases 7% in 2023
5. Additional 15,000.00 fee annually for FDA. (taxes and licenses)