Reports Why did the numbers on my Proformas not match The Capstone Courier


Your proformas are predictions of the year's results. They are driven in part by the prices you set, the production runs you schedule and the sales you forecast.

Assuming your sales forecasts were near the actual sales results, the proforma financial should be fairly close to the actual financial results reported in The Capstone® Courier and annual reports. However, if your forecasts were significantly different from the actual sales results, then there will be a significant difference in the financial results.

For example, if you priced your Traditional product at $25.00, and predicted it would sell 2,000,000 units (2,000 in the forecast  entry), the proformas will project $50,000,000 in revenue.*

However, if the actual sales results came out to 1,500,000 units (and only $37,500,000 in revenue) then the results for the Traditional product in the Courier and the annual report's income statement will differ from the proforma income statement's by $12,500,000. Adding a 12% Inventory Carrying cost for unsold units further depresses results.

*Assuming 2,000,000 units are available for sale. If last year's inventory and this year's production run do not add up to 2,000,000 units, then the proformas will base the projection on the total number of units available for sale.