The controller for Jaunty Coffee Company is preparing the company’s pro forma income statement. The controller has gathered these forecasts: Forecasted amounts Sales 100,000 Selling and administrative expense 15,000 Interest expense 4,000 Income tax rate 25% Direct materials purchases 25,000 Direct materials beginning inventory 13,000 Direct materials ending inventory 10,000 Direct labor costs 17,000 Manufacturing overhead costs 30,000 Finished goods beginning inventory 19,000 Finished goods ending inventory 16,000 Work-in-process inventory is forecasted to be the same at the beginning and the end of the period.

 What is Jaunty Coffee Company’s forecasted net income for next year? 

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To calculate Jaunty Coffee Companys forecasted net income we need to first calculate the cost of ... View the full answer