Income statement of Witson Co. in 2021 showed a net profit of RM 2,254,000 and sales of RM 16,800,000. The operating profit margin was 23% and the company’s gross profit was RM 9,870,000. The company also paid interest of RM 420,000. The company forecast that sales will increase by 10% in the year 2022 and it is assume to pay cash dividend of RM 75,000 to its shareholders. Meanwhile, the tax rate in 2022 is expected to increase to 35% of it Earning Before Tax (EBT). Based on the information provided, prepare a pro forma income statement by using a percentage of sales method for Witson Co. for the period ending 31 December 2022. Round up your percentage calculation to four (4) decimal points.

Answer rating: 100% (QA)

Solution Projected Sales in 2022 Projected Sales Sales in 2021 1 Growth Rate Projected Sales RM 1680... View the full answer