6.

6 The Projected Profit and Loss Statement

All the required document is attached at the final page of this business plan please review the
details which has three years Projected profit and loss statement, sales forecast, profit margin(
Gross, operating and net), sales figure and growth rates in details presented.

6.6.1. Projected Profit and Loss

The detailed yearly pro-forma income statement for the year is included in the appendix.

Appendix 1: Provisional Income Statement

Addisu Tadesse
Wholesale Trade (Shop)
For the Year Ended….
Descriptions 2013 E. C 2014 E. C
Total Sales 1,650,000.00 3,900,000.00
Beg Inventory 200,000.00 300,000.00
Purchase 1,300,000.00 3,200,000.00
Cost of Available for Sale 1,500,000.00 3,500,000.00
End Inventory 300,000.00 250,000.00
Less:-Cost of Goods Sold 1,200,000.00 3,250,000.00
Gross Profit 450,000.00 650,000.00
General Expense
Salary Expenses 15,200.00 22,800.00
Wage Expense 16,250.00 24,375.00
Licensing Expense 6,500.00 9,750.00
Inventory Expenses 10,500.00 15,750.00
Transportation Expense 10,250.00 15,375.00
Miscellaneous Expense 11,000.00 16,500.00
Utilities Expense 12,250.00 18,375.00
Total Operating Expense 81,950.00 122,925.00
Income Before Tax 368,050.00 527,075.00
Income Tax (35%) (128,817.50) (184,476.25)
Net Income 239,232.50 342,598.75
Appendix 2: Income Statement
Income Statement
Addisu Tadesse Wholesale Trade (Shop)
For the Year Ended 2015 E.C

Descriptions
Total Sales 4,350,000.00
Beg. Inventory 250,000.00
Purchase 3,400,000.00
Cost of Goods Available for Sales 3,650,000.00
End Inventory 200,000.00
Less:- Cost of Goods Sold 3,450,000.00
Gross Profit 900,000.00
General and Administrative Expense
Salary Expenses 30,400.00
Wage Expense 32,500.00
Licensing Expense 13,000.00
Inventory Expenses 21,000.00
Transportation Expense 20,500.00
Miscellaneous Expense 22,000.00
Utilities Expense 24,500.00
Miscellaneous Expenses 23,325.40
Total Operating Expense 187,225.00
Income Before Tax 712,775.00
Income Tax (35%) (249,471.25)
Net Income 463,303.75
Appendix 3: Forecasted Income Statement
Forecasted Income Statement
Addisu Tadesse Wholesale Trade (Shop)
For the Year Ended…

Descriptions 2016 E. C 2017 E. C

Total Sales 19,000,000.00 25,000,000.00
Beg. Inventory 1,000,000.00 1,500,000.00
Purchase 17,000,000.00 22,000,000.00
Cost of Goods Available for Sales 18,000,000.00 23,500,000.00
End Inventory 1,500,000.00 2,000,000.00
Less- Cost of Goods Sold 16,500,000.00 21,500,000.00
Gross Profit 2,500,000.00 3,500,000.00
General Expense
Salary Expenses 92,528.00 138,792.00
Wage Expense 100,020.00 150,030.00
Inventory Expenses 90,000.00 135,000.00
Transportation Expense 90,000.00 120,000.00
Licensing Expense 16,000.00 24,000.00
Advertising Expense 110,000.00 165,000.00
Utilities expense 70,000.00 105,000.00
Miscellaneous Expenses 30,000.00 60,000.00
Total Operating Cost (598,548.00) (897,822.00)
Operating Income Before Tax 1,901,452.00 2,602,178.00
Income Tax (35%) (665,508.20) (910,762.30)
Net Income 1,235,943.80 1,691,415.70
N.B: The following assumptions were used to forecast or project the income statements
of the business for the coming three years.
1. Its Sales volume will be increase by 100% and 150% for the next two years respectively.
2. All Expenses may be increase by 50% for the next years.
Appendix 4: Provisional Balance Sheet

Descriptions YEAR 2013 E. C YEAR 2014 E. C

Current Assets
Cash in Bank 84,595.83 184,997.78
Cash On Hand 15,000.00 10,000.00
Goods in Stock (Inventory) 300,000.00 250,000.00
Total Current Asset 399,595.83 444,997.78
Fixed Assets
Store(Shop) 350,000.00 500,000.00
Residential House 1,000.000.00 1,200,000.00
Total Fixed Assets 1,350,000.00 1,700,000.00
Total Assets 1,749,595.83 2,144,997.78
Liabilities And Capital
Bank Loan 0 0
Income Tax payable 128,817.50 184,476.25
Total Liabilities 128,817.50 184,476.25
Beginning Capital 1,381,545.83 1,617,922.78
Net Income 239,232.50 342,598.75
Total Capital 1,620,778.33 1,960,521.53
Total Liabilities And Capital 1,749,595.83 2,144,997.78
Appendix 5: Balance Sheet
Balance Sheet
Addisu Tadesse Wholesale Trade (Shop)
As of Sene 30, 2015 E. C
Current Assets
Cash in Bank
148,520.19
Cash on Hand
5,000.00
Inventory/Goods in Stock
200,000.00
Total Current Asset 353,520.19
Fixed Assets
Store(Shop) 700,000.00
Residential House 2,000,000.00
Total Fixed Assets 2,700,000.00
Total Assets
3,053,520.19
Liabilities And Capital
Bank Loan
0
Income Tax payable
249,471.25
Total Liabilities 249,471.25
Beginning Capital
2,340,745.19
Net Income
463,303.75
Total Capital
2,804,048.94
Total Liabilities And Capital
3,053,520.19
Appendix 6: Projected Balance Sheet
Assets 2016 E. C 2017 E. C
Current Assets
Cash in Bank and on Hand 307,040.38 614,080.76
Inventory/Goods in Stock
1,500,000.00 2,000,000.00
Total Current Asset 1,807,040.38 2,614,080.76
Fixed Assets
710,000.00 539,000.00
Store(Shop)
2,500,000.00 3,000,000.00
Residential House
Total Fixed Assets 3,210,000.00 3,539,000.00
Total Assets 5,017,040.38 6,153,080.76
Liabilities And Capital
Bank Loan 2,000,000.00 2,000,000.00
Income Tax Payable
665,508.20 910,762.30
Total Liabilities 2,665,508.20 2,910,762.30
Beginning Capital 1,115,588.38 1,550,902.76
Net Income
1,235,943.80 1,691,415.70
Total Capital 2,351,532.18 3,242,318.46
Total Liabilities And Capital 5,017,040.38 6,153,080.76

N.B: The following assumptions are used to forecast or project the balance sheet items of
the business.
1. If cash in bank and on hand double its self
2. If the promoter gets 2,000,000.00 from the requested amount of loan from the bank
3. Some fixed assets are depreciated by 10% and other fixed assets are increase with inflation
rate like buildings.