Assignment 4: Supply Chain Management and Financial Plan
, Assignment 4: Supply Chain Management and Financial Plan
When starting a company or any business, it is important to create a financial plan.
According to Weiss (1), an important step is fashioning a well-designed, practical, realistic
financial plan. A pro-forma income statement is a projected income statement. It shows the sales,
cost of sales, gross margin, operating expenses and profits.
Pro-forma income statement of Heritage Pet Inc.
2021 2022
Sales $180,000 $285,000
Direct cost of sales $40,000 $50,000
Other costs of goods $0 $0
Total cost of sales $40,000 $50,000
Gross margin $100,000 $185,000
Gross margin 67% 76%
percentage
Expenses 2021 2022
Payroll $70,000 $86,000
Sales expenses $7866 $9879
Depreciation $20,000 $10,000
Rent $6,000 $10,000
Utilities 67,000 76,000
Miscellaneous 5,000 7,800
, Assignment 4: Supply Chain Management and Financial Plan
When starting a company or any business, it is important to create a financial plan.
According to Weiss (1), an important step is fashioning a well-designed, practical, realistic
financial plan. A pro-forma income statement is a projected income statement. It shows the sales,
cost of sales, gross margin, operating expenses and profits.
Pro-forma income statement of Heritage Pet Inc.
2021 2022
Sales $180,000 $285,000
Direct cost of sales $40,000 $50,000
Other costs of goods $0 $0
Total cost of sales $40,000 $50,000
Gross margin $100,000 $185,000
Gross margin 67% 76%
percentage
Expenses 2021 2022
Payroll $70,000 $86,000
Sales expenses $7866 $9879
Depreciation $20,000 $10,000
Rent $6,000 $10,000
Utilities 67,000 76,000
Miscellaneous 5,000 7,800
