Question: Synandre I really cannot give you the specifics just yet, but I can give you some general guidance. First, as you know, we carefully control


Synandre I really cannot give you the specifics just yet, but I can give you some general guidance. First, as you know, we carefully control SG&A. Our historic pattern shows that that our total operating expenses break down as 60% selling, 35% general and administrative, and 5% interest cost. We will match this historic pattern, even though we spent $250,?10,000 on advertising. The other selling expense categories of salaries fdepreciation! utilities will allocate on a (:10:r 10 f 30 ratio. Caller #5 You are losing me here . . . I follow your selling expense, but how about general and administrative costs? Synandre Ok, you guys are really pressing me for the details. All I can tell you at this point is that the general and administrative costs will consist of three categories: salaries f depreciation futilities. These will allocate out on a 50 I 30 I 20 basis. I cannot yet give you the specific amounts. With that, it is time to close this webcast. Thank you for your attention. We look forward to providing you with detailed income statements in the next few weeks. Good day. Assume you are a financial analyst. Your assignment is to a review the above transcript and prepare a report for your clients that includes a preliminary view of how you think the income statement will appear, when issued. Prepare both a multiple'step and singlestep income statement for their review
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