BUDS AND BLOOMS

------- (Plant Business) -------

Product’s Unit Price & Average number of units sold in a month

Every succulent plant sells for 120 pesos per unit. 84 product items are sold monthly.
INCOME STATEMENT

Amount
Gross Sales 120,960
Less: Sales Returns, Discounts 4,320
Net Sales 116,640
Less: Costs of Goods Sold 12,000
Profit or Gross Margin 104,640
Less: Operating Expenses 10,800
Income Before Interest and Taxes 93,840
Less: Interest Expense 0
Profit Before Tax 93,840
Less: Income Tax 1,495.49
NET INCOME 92,344.51

The following points are the Buds and Blooms’ Financial Assumptions:
 Sales Will Increase at 35%.
 COGS As % Of Sales will Remain the Same.
 OE as % Of Sales will Remain the Same.
 Tax rate will remain at a constant rate of 1.24 %.
 Projected 3-Year Income Statement

Current % Of Second Third

(000's) Year Assumptions Sales First Year Year Year
Sales Will Increase At
Sales ₱120,960 35% ₱163,296 ₱284,256 ₱405,216
COGS As % Of Sales
Costs Of Good Will Remain The
Sold ₱12,000 Same 10% ₱16,200 ₱28,200 ₱40,200

Gross Profit ₱104,640 ₱147,096 ₱256,056 ₱365,016

OE As % Of Sales
Operating Will Remain The
Expenses ₱10,800 Same 9% ₱14,580 ₱25,380 ₱36,180

Earnings Before
Interest And Tax ₱93,840 ₱132,516 ₱230,676 ₱328,836

Interest Expense N/A N/A N/A N/A

Profit Before
Tax ₱93,840 ₱132,516 ₱230,676 ₱328,836
Tax Rate Will Remain
At A Constant Rate
Income Tax ₱1,495.49 Of 1.24 % ₱1,643.20 ₱2,860.38 ₱4,077.57

NET EARNINGS ₱92,344.51 ₱130,872.80 ₱227,815.62 ₱324,758.43

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