MANAGEMENT

Detailed explanation-1: -Profitability is measured with an “income statement". This is essentially a listing of income and expenses during a period of time (usually a year) for the entire business.

Detailed explanation-2: -A pro forma income statement in business plan is the statement prepared by the business entity to prepare the projections of income and expenses, which they expect to have in the future by following certain assumptions such as competition level in the market, size of the market, and growth rate, etc.

Detailed explanation-3: -A pro forma income statement will show how much a business or company expects to make in sales and revenue, it also highlights forecasted fixed or variable operating expenses and ultimately, shows how much profits and retained earnings can be made at the end of a future financial period.

Detailed explanation-4: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.