How to calculate cost of good sold and Selling and G&A Expenses for Pro Forma Income Statement

 

	2020	2019	2018
Sales	$4,407,500	$3,946,250	$3,517,800
Cost of Goods Sold		$3,331,250	$2,935,600
Gross Profit		$615,000	$582,200
Selling and G&A Expenses		$330,300	$240,000

 

Given:

Central Perks Inc.
Income Statement
For the Year Ended Dec. 31, 2019
	2019	2018
Sales	$ 3,946,250	$   3,517,800
Cost of Goods Sold	$ 3,331,250	$   2,935,600
Gross Profit	$ 615,000	$   582,200
Selling and G&A Expenses	$   330,300	$     240,000
Fixed Expenses	$   100,000	$     100,000
Depreciation Expense	$     20,000	$       18,900
EBIT	$ 164,700	$   223,300
Interest Expense	$     76,000	$       62,500
Earnings Before Taxes	$   88,700	$   160,800
Taxes	$     35,480	$       64,320
Net Income	$    53,220	$      96,480
Notes:
Tax Rate	40%
Sales history	Revenue	COGS	Forecast
2015	$ 1,937,795	$   1,609,455
2016	$ 2,150,952	$   1,738,086
2017	$ 2,409,066	$   2,042,210
2018	$ 3,517,800	$   2,935,600
2019	$ 3,946,250	$   3,331,250
2020	$ 4,407,500

Answer rating: 100% (QA)

Answer To calculate the cost of goods sold COGS and Selling and General Administ... View the full answer