Adaptive Solutions Online

Sales
Cost of Goods
Gross Margin

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7
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22-Sep-13

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Eight-Year Financial Projection for Product X

42,524,207
29,809,469
12,714,738

45,222,900
31,701,253
13,521,647

48,092,858
33,713,093
14,379,765

51,144,951
35,852,611
15,292,340

54,390,737
38,127,907
16,262,830

57,842,510
40,547,599
17,294,910

61,513,340
43,120,851
18,392,489

65,417,130
45,857,408
19,559,722

3,190,816
500,000
1,050,000
5,953,389
1,445,823
467,766
75,000

3,393,217
625,000
1,113,000
6,331,206
1,537,579
497,452
80,250

3,608,464
430,000
1,179,780
6,733,000
1,635,157
529,021
85,868

3,837,371
525,000
1,250,567
7,160,293
1,738,928
562,594
91,878

4,080,805
550,000
1,325,601
7,614,703
1,849,285
598,298
98,310

4,339,688
450,000
1,405,137
8,097,951
1,966,645
636,268
105,191

4,615,000
400,000
1,489,445
8,611,868
2,091,454
676,647
112,555

4,907,785
400,000
1,578,812
9,158,398
2,224,182
719,588
120,434

12,682,794

13,577,704

14,201,291

15,166,632

16,117,002

17,000,881

17,996,968

19,109,199

Income Tax

31,944
11,180

-56,057
0

178,474
62,466

125,708
43,998

145,828
51,040

294,030
102,910

395,520
138,432

450,523
157,683

Net Income

20,764

-56,057

116,008

81,710

94,788

191,119

257,088

292,840

Expenses
Advertising
Maintenance
Rent
Salaries
Shipping
Supplies
Web Sercives

Total Expense
Operating Income

Assumptions
Units Sold in Prior Year
Unit Cost
Annual Sales Growth
Annual Price Increase
Margin

242,847
$122.75
3.50%
2.75%
29.90%

Projected Net Income

Product X
350,000

300,000

250,000

NET INCOME

200,000

150,000

100,000

50,000

0
Year 1

-50,000

-100,000

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Adaptive Solutions Online

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22-Sep-13

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Ye
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r1

Eight-Year Financial Projection for Product X

Net Income
Net Income case 1
Net Income case 2
Net Income case 3

20,764
20,764
20,764
20,764

-56,057
-26,018
-102,846
-52,263

116,008
157,890
52,180
121,258

81,710
149,091
-28,866
90,095

94,788
191,149
-70,468
106,690

191,119
320,314
6,671
206,957

257,088
423,380
24,770
277,322

292,840
500,941
8,339
317,971

Annual Sales Growth

Annual Price Increase

3.50%
2.75%

Case 1
4.50%
3.50%

Case 2
2.50%
1.00%

Case 3
1.50%
5.00%

Analyze:
As the result display, In the case 1 , changing the annual sales 3.50% to 4.50% and annual price increase 2.75 to 3.50%. The net income increase from prior year.
In the case two. Both of percentage decreeing, that case the net income decreasing from prior year.
In the case three. The annual price increase 1%-5%. The net income the increasing even the annual sales growth deceasing 2.50% to 1.50%.

Adaptive Solutions Online

Sales
Cost of Goods
Gross Margin

ar
8
Ye

ar
7
Ye

ar
6
Ye

ar
5
Ye

ar
4

22-Sep-13

Ye

ar
3
Ye

ar
2
Ye

Ye

ar
1

Eight-Year Financial Projection for Product X

42,804,174
29,809,469
12,994,704

45,520,634
31,701,253
13,819,381

48,409,487
33,713,093
14,696,393

51,481,674
35,852,611
15,629,063

54,748,830
38,127,907
16,620,923

58,223,327
40,547,599
17,675,728

61,918,325
43,120,851
18,797,474

65,847,817
45,857,408
19,990,409

3,211,813
500,000
1,050,000
5,992,584
1,455,342
470,846
75,000

3,415,548
625,000
1,113,000
6,372,889
1,547,702
500,727
80,250

3,632,212
430,000
1,179,780
6,777,328
1,645,923
532,504
85,868

3,862,626
525,000
1,250,567
7,207,434
1,750,377
566,298
91,878

4,107,662
550,000
1,325,601
7,664,836
1,861,460
602,237
98,310

4,368,250
450,000
1,405,137
8,151,266
1,979,593
640,457
105,191

4,645,374
400,000
1,489,445
8,668,566
2,105,223
681,102
112,555

4,940,086
400,000
1,578,812
9,218,694
2,238,826
724,326
120,434

12,755,585

13,655,115

14,283,614

15,254,180

16,210,106

17,099,893

18,102,264

19,221,178

Income Tax

239,119
83,692

164,266
57,493

412,779
144,473

374,883
131,209

410,816
143,786

575,835
201,542

695,209
243,323

769,231
269,231

Net Income

155,428

106,773

268,307

243,674

267,031

374,293

451,886

500,000

Expenses
Advertising
Maintenance
Rent
Salaries
Shipping
Supplies
Web Sercives

Total Expense
Operating Income

Assumptions
Units Sold in Prior Year
Unit Cost
Annual Sales Growth
Annual Price Increase
Margin

242,847
$122.75
3.50%
2.75%
30.36%

Adaptive Solutions Online

Sales
Cost of Goods
Gross Margin

ar
8
Ye

ar
7
Ye

ar
6
Ye

ar
5
Ye

ar
4

22-Sep-13

Ye

ar
3
Ye

ar
2
Ye

Ye

ar
1

Eight-Year Financial Projection for Product X

42,524,207
29,809,469
12,714,738

46,660,256
32,708,840
13,951,417

51,198,592
35,890,213
15,308,379

56,178,341
39,381,017
16,797,324

61,642,438
43,211,349
18,431,089

67,637,991
47,414,232
20,223,759

74,216,693
52,025,902
22,190,791

81,435,261
57,086,118
24,349,143

3,190,816
500,000
1,050,000
5,953,389
1,445,823
467,766
75,000

3,501,019
625,000
1,113,000
6,532,436
1,586,449
513,263
80,250

3,841,394
430,000
1,179,780
7,167,803
1,740,752
563,185
85,868

4,214,876
525,000
1,250,567
7,864,968
1,910,064
617,962
91,878

4,624,683
550,000
1,325,601
8,629,941
2,095,843
678,067
98,310

5,074,349
450,000
1,405,137
9,469,319
2,299,692
744,018
105,191

5,567,752
400,000
1,489,445
10,390,337
2,523,368
816,384
112,555

6,109,145
400,000
1,578,812
11,400,937
2,768,799
895,788
120,434

12,682,794

13,951,417

15,008,781

16,475,314

18,002,444

19,547,706

21,299,840

23,273,913

Income Tax

31,944
11,180

0
0

299,598
104,859

322,010
112,704

428,645
150,026

676,053
236,619

890,951
311,833

1,075,230
376,330

Net Income

20,764

194,738

209,307

278,619

439,435

579,118

698,899

Expenses
Advertising
Maintenance
Rent
Salaries
Shipping
Supplies
Web Sercives

Total Expense
Operating Income

Assumptions
Units Sold in Prior Year
Unit Cost
Annual Sales Growth
Annual Price Increase
Margin

242,847
$122.75
9.73%
0.00%
29.90%