1. Vette Pharmaceuticals

7. Vette Pharmaceuticals Income Statement Income Statement Projected Five-Year Income Statement YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Avg. Price per unit of product (Estimate) 50 50 50 50 50 Number of units sold 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 Loan Principal Balance 30,000,000 24,000,000 18,000,000 12,000,000 6,000,000 Number of Employees 150 300 450 700 1,000 Annual Salary per Employee 53,000 58,000 64,000 70,000 80,000 Total Revenue 175,000,000 262,500,000 392,500,000 590,000,000 885,000,000 Expenses Salaries, wages, benefits 7,950,000 17,400,000 28,800,000 49,000,000 80,000,000 Loan Interest @ 3.5% 1,050,000 840,000 630,000 420,000 210,000 Principal Repayment 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 Rent 21,000,000 31,500,000 47,100,000 70,800,000 106,200,000 Utilities 30,000 60,000 90,000 140,000 200,000 Insurance 22,500 45,000 67,500 105,000 150,000 Equipment 120,000 240,000 360,000 560,000 800,000 Communication Expense 12,000 24,000 36,000 56,000 80,000 Postage/Shipping 7,000,000 10,500,000 15,700,000 23,600,000 35,400,000 Office supplies 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 Marketing/advertising 175,000,000 210,000,000 235,500,000 236,000,000 177,000,000 Training / development 10,500,000 15,750,000 23,550,000 35,400,000 53,100,000 Miscellaneous 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 IT Expense (website, hardware, etc.) 150,000 300,000 450,000 700,000 1,000,000 Total Expenses 235,834,500 303,159,000 373,983,500 446,381,000 495,540,000 Income - (Loss) (60,834,500) (40,659,000) 18,516,500 143,619,000 389,460,000 Taxes @30% of Income 0 0 0 43,085,700 116,838,000 Net Income (Loss) (60,834,500) (40,659,000) 18,516,500 100,533,300 272,622,000 Net Income as % of Sales -34.8% -15.5% 4.7% 17.0% 30.8%