Business Plan Help

Income Projections Help

Explanation of Terms: Income Projections

To properly project net income, you will need to have already completed the projections on Sales, Cost of Goods, and Operating Expenses. Those projections will allow us to determine the “Gross Profit” of the business (Sales – Cost Of Goods Sold = Gross Profit). The final step will be to subtract the “Operating Expenses” of the company to project “Net Profit” (Gross profit – Operating Expenses = Net Profit). You will find this as the actual formula used in the income projection statements.