A target income statement is a document which lists down the prospective sources of income to reach the target income of an individual. The income targets can be set quarterly, annually, or yearly by the respective companies depending upon the company policies. It must be written after a thorough analysis of the market and the companies’ potentials.
Sample Target Income Statement:
Georgia Consultancy Services
The following is the target income statement for the company for a specified period of time. The target specifications are all given in ballpark figures for accurate estimation of the consolidated statements pertaining to the annual income data of the company.
Percentage of market shares held by the company: 10%
Address of the main office: 4, Lotus Park, Florida
Operating zone: Florida
Statement prepared by: Miss Lon Viva, Chief Accountant
Statement made for the period of: 1st January, 2011 to 2nd January, 2012
Present income statement:
Net operating monthly income: $592000000 (including sales, stock exchange, rents)
Total operating expenses: $3840000 (including taxation, loan interests and expense bills)
Net income from common shares: $57393999
Therefore, total profits earned: $79372999
Target income statement:
Considering the present income state and profit condition, we have planned to raise the profit income by 5% by expanding the services and investments beyond the confines of the current operating zone. The following details give a rough idea of the target set for the next fiscal year:
Production and services to be increased by 10%
Capital investments to be increased by 4%
Investments in shares to be upgraded to 2%
Therefore, the target revenue income is set at $ 89372999 approx.