Given the following 2019 income statement and predictions for 2020, answer the following questions: Show calculations. Given
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Given the following 2019 income statement and predictions for 2020, answer the following questions:
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Show calculations. Given the following 2019 income statement and predictions for 2020, answer the following questions: Sales COGS Gross profit Fixed expenses Operating income Tax rate 30% Net income $ 10,000 $4,500 $5,500 $1,500 $ 4,000 $ 1,200 $ 2,800 Predicted 2020 sales increase: 20% Predicted 2020 fixed expense increase: 6% COGS varies proportionally to change in sales 1. Calculate the predicted 2020 net income (6 pts) 2. Based on the pro forma prediction, what is the % change in net income from 2019 to 2020? (2 pts) Show calculations. Given the following 2019 income statement and predictions for 2020, answer the following questions: Sales COGS Gross profit Fixed expenses Operating income Tax rate 30% Net income $ 10,000 $4,500 $5,500 $1,500 $ 4,000 $ 1,200 $ 2,800 Predicted 2020 sales increase: 20% Predicted 2020 fixed expense increase: 6% COGS varies proportionally to change in sales 1. Calculate the predicted 2020 net income (6 pts) 2. Based on the pro forma prediction, what is the % change in net income from 2019 to 2020? (2 pts)
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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