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 70000 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 $1000000 variable $2000000 Gross profits $2000000 Less: Operating expenses fixed 150000 variable 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? What is the company's gross profit in the year 2021 What are the company's operating expenses in the year 2021? What is the company's operating profit in the year 20212 What is the company's net income in the year 2021
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