Question

Please fill out chat. What is forecast for netincome in 2016 ?
ASSUMPTIONS
Sales Price per Unit	$49.99
Gross Margin = (Revenues - cost of goods sold) / Revenues	25%
Depreciation & amortization as a % of capital expenditures	25%
Tax Rate	35%
Year	2014	2015	2016	2017	2018
Units Sold	200,000
Growth Rate Of Unit Sold		5%	13%	15%	9%
Operating Expenses as % of Sales (2014 Only)	10%
Operating Expense Growth Rate		4%	4%	4%	4%
Capital Expenditures	$1,750,000	$1,775,000	$1,800,000	$1,825,000	$1,850,000
Interest Expense	$0	$10,000	$10,000	$10,000	$12,500
Income Statement
Year	2014	2015	2016	2017	2018
Units Sold	200,000	210,000	237,300	272,895	297,456
Price per Unit	$49.99	$49.99	$49.99	$49.99	$49.99
Revenue	9,998,000	10,497,900	11,862,627	13,642,021	14,869,803
Cost of goods sold
Gross Profit (defined as Revenue - COGS)
Operating Expenses
Earnings Before Interest Taxes Depreciation And Amortization (Ebitda)
EBITDA / Revenue (%)
Depreciation and Amortization
Operating Income (defined as EBITDA - Depreciation and Amortization)
Interest Expense
Pre-tax Net Income (Operating Income - Interest Expense)
Income Taxes
Net Income (Pret-tax Net Income - Income Taxes)

Answer 1

Income Statement :-

Particulars	2014	2015	2016	2017	2018
Units Sold	200000	210000	237300	272895	297456
Price Per Unit	$49.99	$49.99	$49.99	$49.99	$49.99
Revenue	$9998000	$10497900	$11862627	$13642021	$14869825
Less : Cost of Goods sold	$7498500	$7873425	$8896970	$10231516	$11152369
Gross Profit @25%	$2499500	$2624475	$2965657	$3410505	$3717456
Less : Operating Expenses	$999800	$1039792	$1081384	$1124639	$1169625
EBITDA	$1499700	$1584683	$1884273	$2285866	$2547831
EBITDA/Revenue(%)	15%	15.095%	15.88%	16.76%	17.13%
Less : Depreciation	$437500	$443750	$450000	$456250	$462500
Operating Income	$1062200	$1140933	$1434273	$1829616	$2085331
Less : Interest Expense	$0	$10000	$10000	$10000	$12500
Pre Tax Net Income	$1062200	$1130933	$1424273	$1819616	$2072831
Less : Tax @ 35%	$371770	$395827	$498496	$636866	$725491
Net Income	$690430	$735106	$925777	$1182750	$1347340