Every business, whether corporate or personal, would need to have a projected income statement. This is an important activity as the projected income statement allows the business or individual to have an estimate of how the financial status of his business is.
The projected income statement is a financial document that offers financial information about the business. The actual statement is compiled on a monthly or yearly basis but a projected income statement will record the current month and year-to-date estimated figures and their percentages.
The main pieces of information in the projected income statement are similar to that in an actual income statement. It has revenue, cost of sales, operating expenses, net income or loss sections. Each section registers the financial details related to that section that affects the financial status of the business.
The projected income statement also has two columns to compare the financial values for the current month and year-to-date. Each column records the amount and percentage for every item listed under the different categories.
The projected Income Statement template may contain:
* Company Name
* Company Address
* Income Statement Date
* Period ending date
* Gross sales
* Net sales
* Cost of Sales
* Operating Expenses
*General / Administrative expenses
* Net Income / Loss
Depending on the computation among the Revenue, Cost of Sales and Operating Expenses, the projected Income Statement will register a Loss or Profit.
Consider the attached sample template for your convenience