Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Tesla, Inc. Tesla,

image text in transcribed

image text in transcribed

1 Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Tesla, Inc. Tesla, Inc. estimates that its sales in 2021 will be 300000. The firm plans to pay cash dividends of 8000 during 2021. Tesla, Inc.'s income statement for the year ended December 31, 2020 is shown below: Income statement Tesla, Inc. For the year ended December 31,2020 Sales Revenue $200000 Less: Cost of Goods $50000 sold fixed $50000 variable Gross profits $100000 Less: Operating 5000 expenses fixed 5000 variable laneratina nrofits l&annnn 83% 3 11:54 AM Gross profits $100000 1 5000 Less: Operating expenses fixed 5000 variable Operating profits $90000 Less: Interest 110000 expense Profit before tax $80000 Less: Taxes (40%) 32000 Net profit after taxes $48000 Less: Cash 8000 dividends To retained earnings $40000 What is the company's cost of goods sold in the year 2021? What is the company's gross profit in the year 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing In Real Estate Private Equity

Authors: Sean Cook

1st Edition

1980587027, 978-1980587026

More Books

Students also viewed these Finance questions

Question

=+19.1. Suppose that u(12) and fe L". Show that IfIl, Ilfilo.

Answered: 1 week ago