The income statement for Red Dog Corporation appears below (amounts in millions): Sales Revenue $31,683 Cost of Good Sold 20,947 Gross profit 10,736 Total operating expenses 8,100 Operating income or loss 2,636 Other income/expenses 11 Earnings before interest and taxes 2,647 Interest expense 334 Income before tax 2,313 Income tax expense 810 Net income $ 1,503 How much is pro forma gross profit for the next year if sales growth is forecasted to be 10% per year, the income tax rate is 35.0%, and all expenses except for interest are expected to be in the same proportion to sales revenue as the current year?   

Answer rating: 100% (QA)

To calculate the pro forma gross profit for the next year we need to first determine the projected sales revenue for the next year based on the 10 sal... View the full answer