Question: Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Google, Inc. Google, Inc.
Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Google, Inc.
Google, Inc. estimates that its sales in 2021 will be 4000000 . The firm plans to pay cash dividends of 80000 during 2021. Google, Inc.'s income statement for the year ended December 31, 2020 is shown below:
| Income statement Google, Inc. For the year ended December 31,2020 | |
| Sales Revenue | $5000000 |
| Less: Cost of Goods sold fixed variable | $1000000 $2000000 |
| Gross profits | $2000000 |
| Less: Operating expenses fixed variable | 150000 100000 |
| Operating profits | $1750000 |
| Less: Interest expense | 100000 |
| Profit before tax | $1650000 |
| Less: Taxes (40%) | 660000 |
| Net profit after taxes | $990000 |
| Less: Cash dividends | 120000 |
| To retained earnings | $870000 |
What is the company's cost of goods sold in the year 2021?
Answer for part 1
What is the company's gross profit in the year 2021?
Answer for part 2
What are the company's operating expenses in the year 2021?
Answer for part 3
What is the company's operating profit in the year 2021?Answer for part 4
What is the company's net income in the year 2021?
Answer for part 5
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