Projected Income Statement (DRE)
The Projected Income Statement (DRE) shows whether the business generates profit or loss, month by month and year by year, from gross revenue down to net profit — the accounting result of the business, which is different from the cash balance.
What it's for
While the Cash Flow Statement answers 'is there enough cash in the bank?', the Income Statement answers 'is the business profitable?'. These are different questions: a business might have positive cash flow in a month just because it received an investment, even if it's operating at a loss; or it might have an accounting profit but tight cash flow due to defaults or debt payments. Looking at only one of these reports provides an incomplete picture.
Just like the Cash Flow Statement, this exercise is entirely calculated — there is no data to fill in directly here.
How to read the table
The Projected Income Statement follows the classic accounting structure, month by month and year by year:
Gross Revenue — the total from each revenue source registered in Revenues.
Gross Revenue Deductions — Taxes on revenue, Payment fees, and Defaults (from Financial Assumptions) — leading to Net Revenue.
Direct Costs (COGS) — the direct costs for each revenue (registered in Revenues), leading to the Contribution Margin and its percentage of gross revenue.
Operating Expenses — the total of Expenses (General and Marketing).
Personnel — the total payroll cost (CLT and PJ, with charges), coming from the Personnel exercise.
EBITDA — the operating result before interest, taxes on profit, depreciation, and amortization, with its percentage of gross revenue.
Financial Result — interest paid on financing registered in Funding Sources.
Result before Income Tax, Income Tax/CSLL (from Assumptions) and, finally, Net Profit — with its percentage of gross revenue.
How to use it for decisions
Monitor the Contribution Margin % and EBITDA % over months and years: if they don't improve (or worsen) as the business grows, it could be a sign that variable costs are growing with revenue more than they should, or that fixed expenses are not being diluted by growth. A positive Net Profit in Year 1 but a declining Contribution Margin year over year is a warning sign worth investigating before celebrating the overall result.
Tips
Don't confuse EBITDA with available cash — EBITDA has not yet deducted taxes on profit, interest, or debt payments (these are in the Cash Flow Statement).
Use the Consolidated/Full Monthly toggles and Excel in the same way as in Revenues and Cash Flow.
If Net Profit is negative for several consecutive months in Year 1, this is normal for many businesses in the launch phase — what matters is the trend over the following years, visible in columns Year 1 to Year 5.