For our pharmaceutical company.

Once we have the revenues forecast on a product by product basis from the revenues tab, we can then bring that into the income statement and move on to complete the rest of the income statement.

The first thing we need to do is to calculate the subtotal for our total revenue and copy that forward for our forecast period into our first forecast period.

And then we can also, uh, calculate our total revenue in the first forecast period because not only do we have revenues from the pharmaceutical products, but we also have some government grants, which we're gonna just assume stay constant into the future.

If we then move on to the next line of our income statement, we can see here from the historic years, we don't have our historic cost of sales figure, but rather our historic gross profit.

So we're going to forecast our gross profit in the future and solve for the cost of sales.

So let's solve for the cost of sales. First of all, we can see by looking further down in the income statement that the, the expenses are shown as negative balances.

So if we take our gross profit and subtract from that, the total revenue, we'll get the cost of sales and again, roll that forward into the forecast period.

We can now calculate our gross profit.

If we go back up to look at the assumptions, we can see the assumption for our gross profit and our gross profit margin is made on the basis of excluding our pipeline revenue.

We've made our calculations for the pipeline revenue in the pipeline drug tab on a standalone basis.

So when we're solving for the gross profit, we want to be doing this for all of the revenues except for our pipeline products.

So our gross profit needs to be calculated by taking our assumption, the gross profit margin as a percentage of our revenues, but excluding the pipeline drug.

So the pipeline drug revenue we can find from the revenues tab, Doria being the pipeline drug.

So we'll strip out any revenue that we have coming through from that particular product.

And then we'll have our revenues, excluding any pipeline drug revenue being used in the calculation of our gross profit margin on our existing products.

However, we do want to include the gross profit on our pipeline drugs if we turn the pipeline switch on.

So I want to add onto the forecast gross profit on our existing sales, the forecast gross profit on the pipeline drug.

But I wanna do it within an if statement.

So within our if statement, if the pipeline switch is turned to one, then we're gonna pick up the gross profits for our pipeline drug for 2020, our first forecast year. There's no values here.

Uh, but this will help us as we copy it across the right or otherwise zero.

And then if we add that on, we can see that we have no change to our gross profit for the first year, but there would be a change to our gross profit if we have had a positive value coming through for that pipeline drug.