Project Profitability (Profit Table)
Project
profitability is measured by the LDM. The
profit table annualizes project
gross revenue,
sale cost, net revenue, cost of goods sold, gross profit,
interest, and profit before tax, and
provides a summation column. Interest
expense is based on the allocation
method of accounting whereby interest that is
not allocated/expensed in any given year is carried forward
to subsequent
years.
| PROFIT TABLE | ||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Totals | |||
| Gross Revenue | $290,000 | $1,740,000 | $1,761,000 | $1,776,000 | $518,000 | $6,085,000 | ||
| Sale Costs | $11,600 | $69,600 | $70,440 | $71,040 | $20,720 | $243,400 | ||
| Net Revenue | $278,400 | $1,670,400 | $1,690,560 | $1,704,960 | $497,280 | $5,841,600 | ||
| COGS | $193,868 | $1,163,209 | $1,185,682 | $1,201,735 | $350,506 | $4,095,000 | ||
| Gross Profit | $84,532 | $507,191 | $504,878 | $503,225 | $146,774 | $1,746,600 | ||
| Interest | $5,052 | $94,736 | $36,482 | $47,779 | $13,936 | $197,985 | ||
| Profit Before Tax | $79,480 | $412,455 | $468,396 | $455,446 | $132,838 | $1,548,615 | ||
Land Development Model, LLC
302 West Lafayette Road
Medina, OH 44256
330.441.1690
302 West Lafayette Road
Medina, OH 44256
330.441.1690