Question: A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $4500000. 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 $4500000. 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 |
A&P's Total cost of goods sold in 2021:Answer for part 1
A&P's Depreciation Expense in 2021:
Answer for part 2
A&P's Total operating expenses in 2021
Answer for part 3
A&P's Net profit after taxes in 2021:
Answer for part 4
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