A company's current income statement is provided below. The company expects sales to increase to $452,000 next year. Based on the percent of sales method, what are the company's pro forma? 

A.) Cost of goods?

B.) Gross profit for next year?

 

Transcribed Image Text:

Income Statement Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expenses Earnings before taxes Taxes (24%) Net Income $435,600 234,500 $201,100 147,800 $53,300 14,500 $38,800 9,312 $29,488 Income Statement Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expenses Earnings before taxes Taxes (24%) Net Income $435,600 234,500 $201,100 147,800 $53,300 14,500 $38,800 9,312 $29,488

Answer rating: 100% (QA)

To determine the pro forma income statement we need to use the percent of sales method to estimate t... View the full answer