Sales Projection Assistance and the Profit and Loss Statement

Sales Projection Assistance and the Profit and Loss Statement

In Doc Sharing, there is an Excel document that is a tool to project 12 months of sales using the number of estimated customers per month multiplied by the average price (Unit 6 Template). The general idea is to estimate how many people buy from you each month, and how much each will spend on average. For example, if you estimate you will have 30 clients in a month’s time, and each will spend $300, your estimated revenue that month will be $9,000.

Using one month’s estimate for your company’s revenue, you now will need to estimate all your expenses (itemized), and subtract them from your estimated revenue as explained above. Subtracting these expenses will allow you to see how much money you will have left over in that particular month. The amount left over is called your profit.

While this is a simplified explanation of how a business owner arrives at a profit figure, and other charges might need to be considered, this simplified approach is intended to help you understand the basics of a profit and loss statement, also known as an income statement.


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