11.2.  Income (P&L) Projections

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The Guide > 11.  Financial Projections > 11.2.  Income (P&L) Projections

Introduce the projected income statements (profit & loss accounts) using a short paragraph (or bullet points) to highlight the key expected outcomes for sales and income. Use simple tables to summarize the key figures and place all detailed analyses in appendices. As shown below, simple tables and charts can show trends and patterns very clearly.

This table was "pasted in" as picture from Exl-Plan, PlanWare's
Excel-based financial planner  - see Using Exl-Plan with Free-Plan.

When presenting financial data in a table or chart, it can be useful to precede it by a short introductory sentence and following it by a short review of its contents. For example:

The following chart shows actual sales and income for Any Company Inc. for 20XX alongside projections for the following five years:


This chart was "pasted in" as a picture from Exl-Plan, PlanWare's
Excel-based financial planner - see Using Exl-Plan with Free-Plan.

It shows that:

Sales will increase from $380,000 in 20XX to $1.6 million after five years. This represents an average annual growth rate of 33% as explained in 7.4  Sales Forecasts.
The net loss of $115,000 reported for 200XX will be transformed into net income before taxes of $123,000 by the fifth year when the net margin on sales is projected to reach 6%.
The key factor in this improvement will be the widening of gross margins from 29% in 20XX to 39% as discussed in 9.4.1. Purchases & Materials.


More detailed projections can be placed in an appendix for Finance. For help with financial projections, see Financial Projections with Exl-Plan.

For latest information, see the Financial Projections section in the Business Plan Guide at http://www.planware.org/gfinancials.htm


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