The Gospel Company has the following statements, which are representative of the company's historical average. Sales...

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The Gospel Company has the following statements, which are representative of the company's historical average. Sales Cost of Sales Gross profit Gospel Company Income Statement For the year ended Dec. 31, 2018 Operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes (35%) Net Income/Earnings after taxes Dividends P 2,500,000 (1,500,000) 1,000,000 Additional Information: 1. The firm is expecting a 25% increase in sales next year. 2. The company expecting to declare 30% of dividend (380,000) 620,000 80,000 540,000 (189,500) P 350,500 P 140,200 Required: 1. Prepare the projected income statement of Gospel Company. (30 points) 2. How much is the net income? (5 points) 3. How much is the dividend? (5 points) The Gospel Company has the following statements, which are representative of the company's historical average. Sales Cost of Sales Gross profit Gospel Company Income Statement For the year ended Dec. 31, 2018 Operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes (35%) Net Income/Earnings after taxes Dividends P 2,500,000 (1,500,000) 1,000,000 Additional Information: 1. The firm is expecting a 25% increase in sales next year. 2. The company expecting to declare 30% of dividend (380,000) 620,000 80,000 540,000 (189,500) P 350,500 P 140,200 Required: 1. Prepare the projected income statement of Gospel Company. (30 points) 2. How much is the net income? (5 points) 3. How much is the dividend? (5 points)

Answer rating: 100% (QA)

Prepare the projected income statement for Gospel Company for the next year well use the provided in... View the full answer