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Table 3
Year 2 –Profit and loss forecast for Year Two
July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
£ Age £ £ £ £ £ £ £ £ £ £ £
Sales 1,600 1,800 2,000 2,300 3,000 3,800 4,200 5,000 3,600 2,200 2,300 2,200 34,000
Cost of sales
Materials 320 360 400 460 600 760 840 1,000 720 440 460 440 6,800
Sub-contractor - - - - 500 700 1,00 1,500 800 - - - 4,500
Total direct cost 320 360 400 460 1,100 1,460 1,840 2,500 1,520 440 460 440 11,300
Gross profit 1,280 1,440 1,600 1,840 1,900 2,340 2,360 2,500 2,080 1,760 1,840 1,760 22,700
Administrative expenses
Rent - 40 80 100 80 100 80 80 100 80 100 80 920
Telephone
- - 150 - - 200 - - 250 - - 200 800

Bank charges - - 50 - - 50 - - 50 - - 50 200
Overdraft
- - 127 - - 138 - - 105 - - 59 429
interest
H.P. interest 50 50 50 50 50 50 50 50 50 50 50 50 600
Adverti
50 50 50 50 50 50 50 50 50 50 50 50 600
sing
Printing, postage
30 30 30 130 30 30 40 40 30 30 30 30 480
and stationery
Motor expenses
500 80 80 100 260 100 150 150 130 100 100 100 1,850

Accountan-
- - - - - - - - - - - 200 200
cy fees
Insurances 35 35 35 35 35 35 35 35 35 35 35 35 420
Sundry expenses 40 30 30 30 30 30 40 40 30 30 30 30 390
Deprecia-tion of
- - - - - - - - - - - 200 200
equipment
Deprecia-tion of
motor vehicle - - - - - - - - - - - 1,500 1,500

Drawings 950 950 950 950 950 950 950 950 950 950 950 950 11,400

1,655 1,265 1,632 1,445 1,485 1,733 1,395 1,395 1,780 1,325 1,345 3,834 20,289
Net
2,411
Profit
(375) 175 (32) 395 415 607 965 1,105 300 435 495 2,074

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