Met North Energy Corporation: 4 Year Net Profit Projections

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Business

 

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Joan N

 

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May 9, 2016

 

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Despite a loss of $10,000 in the first year the projected profit for the 4 year period is $160,500. The results of the spreadsheet showing both budget options can be reduced to just one simple graph. This supported by market research would convince management as to which option to choose. Met North Energy Corporation Net Profit Projections Year 1996 1997 1998 1999 Sales $450,000 $455,000 $455,000 $460,000 Projected Sales $450,000 $523,250 $523,250 $529,000 Cost of Goods Sold $180,000 $185,000 $180,000 $185,000 Projected Cost $180,000 $203,500 $198,000 $203,500 Gross Profit $270,000 $270,000 $275,000 $275,000 Projected Gross Profit $270,000 $319,750 $325,250 $325,500 Less Expenses: Salaries $80,000 $90,000 $100,000 $110,000 Advertising $50,000 $50,000 $50,000 $50,000 Increase in Advertising $100,000 $50,000 $50,000 $50,000 / 1996 Interest $60,000 $60,000 $60,000 $60,000 Depreciation $40,000 $50,000 $55,000 $65,000 Total Expenses $230,000 $250,000 $265,000 $285,000 Projected Expenses $280,000 $250,000 $265,000 $285,000 Net Profit $40,000 $20,000 $10,000 -$10,000 Projected Net Profit -$10,000 $69,750 $60,250 $40,500 Increase in profit $160,500
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This supported by market research would convince management as to which option to choose. Met North Energy Corporation Net Profit Projections Year 1996 1997 1998 1999 Sales $450,000 $455,000 $455,000 $460,000 Projected Sales $450,000 $523,250 $523,250 $529,000 Cost of Goods Sold $180,000 $185,000 $180,000 $185,000 Projected Cost $180,000 $203,500 $198,000 $203,500 Gross Profit $270,000 $270,000 $275,000 $275,000 Projected Gross Profit $270,000 $319,750 $325,250 $325,500 Less Expenses: Salaries $80,000 $90,000 $100,000 $110,000 Advertising $50,000 $50,000 $50,000 $50,000 Increase in Advertising $100,000 $50,000 $50,000 $50,000 / 1996 Interest $60,000 $60,000 $60,000 $60,000 Depreciation $40,000 $50,000 $55,000 $65,000 Total Expenses $230,000 $250,000 $265,000 $285,000 Projected Expenses $280,000 $250,000 $265,000 $285,000 Net Profit $40,000 $20,000 $10,000 -$10,000 Projected Net Profit -$10,000 $69,750 $60,250 $40,500 Increase in profit $160,500
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