A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $5000000. 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