Question: A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $5500000. Using the

A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $5500000. Using the fixed and variable cost data, Find the following:

A&P Company

Income statement

For the Year Ended December 31, 2020

Sales 2000000

Less: Cost of goods sold

Variable cost 1450000

Fixed cost 10000

Gross profit 540000

Less: Operating expenses

Selling expense (all variable) 20000

Utility expense (all variable) 34000

Depreciation expense(all variable) 6000

Operating profit 480000

Less: Interest expense ( all fixed) 12000

Net profit before taxes 468000

Less: Taxes (10%) 46800

Net profit after taxes 421200

1- A&P's Total cost of goods sold in 2021:

2- A&P's Depreciation Expense in 2021:

3- A&P's Total operating expenses in 2021

4- A&P's Net profit after taxes in 2021:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....

Problem 8-35A (Part Level Submission) The Daniels Tool & Die Corporation has been in existence for a little over three years. The companys sales have been increasing each year as it builds a...

*Problem 8-35A The Daniels Tool & Die Corporation has been in existence for a little over three years. The companys sales have been increasing each year as it builds a reputation. The company...

Addison, inc. makes a single product, an indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the...

I am having trouble solving this problem on question #27. Can you please show me how to solve it step by step? Cost Mastery Problemi cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company...

Hello, I need help in the blank spaces from HIGH-LOW part to CONTRIBUTION MARGIN I already solved the rest. Just need to solutions to those parts, please!!! Thank you!! Mastery Problem:...

Need help with this multi-step problem. Need help with this missing data in the blank boxes. There are 5 images total. PLEASE HELP. Ima cry! Part 1. Mastery Problem: Cost-Volume-Profit Analysis Cost...

Hello, I need help in the blank spaces from HIGH-LOW part to CONTRIBUTION MARGIN( Cover-to-Cover Company & Biblio FilesCompany) I already solved the rest. Just need to solutions to those parts,...

pls help :/ na manufacturer of thing for books. The company has compiled the following cost and wants your help in determinar reviewing the data complete requirements (1) and (2) that follow Total...

Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in...

Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data,...

Why is employee onboarding important . How does it relate to the orientation process

The function f(x, y) = (x + y-11) + (x+y-7) is known as Himmelblau's function which is a function designed for testing per- formance of optimization algorithms (you can see more examples here)....

2 . Discounted Payback Period Concept The discounted payback period is similar to the payback period, except that it accounts for _ _ _ _ _ _ _ _ _ _ _ _ _ by discounting the expected cash flows at...

-ITT Normal! Heading 1 Title Subtitle Emphasis Strong Intense Styles Please enter the first number: 22 Please enter the second number: 33 A 22 and B-33 B vas odd, we add A to make the product: 22...