Question

With the below financial information for a company for fiscal year 2016, create a budget
for fiscal year 2017 assuming a growth rate of 5%/annum.

Revenues $100,000
Cost of Goods Sold 12,000
Gross Profit 88,000
Sales & General Expenses 3,000
Salaries Expense 2,000
Interest Expense 1,000
Research & Development Expense 5,000
Operating Income 77,000
Taxes (20%) 15,400
Net Income $ 61,600

Answer 1

Ans:

Particulars	Amount	Calculation
Revenues	105000	100000*105%
Less: Cost of goods sold	12600	12000*105%
Gross Profit	92400	105000-12600
Sales & General Expenses	3150	3000*105%
Salaries Expenses	2100	2000*105%
Interest Expenses	1050	1000*105%
Research & Development Expense	5250	5000*105%
Operating Income	80850
Less:Tax (20%)	16170	80850*20%
Net Income	64680	80850-16170