Question
The Pro Forma model helps in reaching the break-even point by providing a detailed summary of the company's financial performance. It includes Gross Revenue, Cost of Goods Sold (COGS), Gross Margin, Expenses, and Net Profit. By analyzing these elements, one can determine the point at which the company's total revenue equals its total expenses, i.e., the break-even point. The model also allows for the input of your own data, which is then automatically reflected in the Proforma Summary. This makes it easier to adjust and forecast financial outcomes based on different scenarios.
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This spreadsheet collection includes Sales Revenue, Operating Expense, and Salary Expense input tabs. These tabs allow you to insert your own data to be automatically reflected by the Proforma Summary tab. The final tab shows graphs and break-even charts that give a visual representation of the proforma results. All user inputs are displayed in blue font, calculations in green, and results in black. The Sales Revenue tab lists the Units Sold, Revenue, and Cost of Goods Sold (COGS) for each product per quarter over multiple years. The Operating Expense tab lists expenses by each department per quarter over the years. The Total Expense and Grand Total Expense lines automatically update based on your input. The Salary Expense tab displays data by Department Salary as well as Department Position. The Proforma Summary tab takes inputs from the previous tabs and summarizes them in a proforma model, including Gross Revenue, COGS, Gross Margin, Expenses, and Net Profit.
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