The Edwards and Andrews Company
Pro Forma Income Statements
For the Years Ended December 31, 2020, 2021 and 2022
2020
2021
2022
Sales
$ 650,000
A
H
Less: Cost of goods sold
325,000
340,000
365,000
Gross profit
325,000
B
I
Less: Operating expenses:
Rent
36,000
36,000
J
Payroll
86,000
C
94,600
Payroll taxes
12,040
13,244
K
Utilities
12,000
D
12,360
Insurance
6,000
6,300
L
Depreciation
33,333
E
16,667
Miscellaneous
3,088
F
M
Total operating expenses
188,461
G
N
Net income before income taxes
136,539
177,062
260,575
Less: Income taxes
16,385
21,247
31,269
Net income
$ 120,154
$ 155,815
$ 229,306