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a,b,c please explain to me how you got the answers too Pro forma income statement Scenario analysis Allen Products, Inc. wants to don scenario analysis
a,b,c please explain to me how you got the answers too
Pro forma income statement Scenario analysis Allen Products, Inc. wants to don scenario analysis for the coming year. The pessimistic prediction for sales is 5910,000: the most likely amount of sales is 51.524 000; and to optimistic prediction is $1,251.000 Allen's income statement for the most recent year is shown here Une the percent of a method, the income statement for December 31, 2019, and the sales revenon estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming your b. Explain how this method could result in overstatement of profits for the pessimistice and understatement of profits for the most likely and optimistic cases Restate the proforma income statements prepared in part a to incorporate the following usumptions about the 2019 costs: $234,999 of the cost of goods sold is fixed, the rest is variable, 5209,577 of the operating expenses is fond, the rest in variable. All the interest expenses fixed. (Please seu d. Compare your findings in part c. to your findings in porta. Do your observations confirm your explanation in part b? Complete the pro terra income statement for the year ending December 31, 2020 that is shown below pessimistic scenario (Round the percentage of sales to one decimal place and the pro forma income statement accounts 10. The nearest do 409500 Pro Forma Income Statement Allen Products, Inc. for the Year Ended December 31, 2020 Pessimistic Sa 5 910,000 Los Cont of goods sold 5 45% Gross profit 500500 Less Operating expense 22750025 Operating profits 273000 Les Interest expense $ 3.2% Net pro before taxes 243880 $ 60970 29120 Netpont after taxes $ ed Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $937,400 Less: cost of good sold 407,769 Gross profits $529,631 Less: operating expenses 267,159 Operating profits $262,472 Less: interest expense 30,934 Net profit before taxes $231,538 Less: taxes (rate 25%) 57,885 Net profits after taxes $173,653 Print Done LIC -X Data Table fi he (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $937,400 Less: cost of good sold Fixed 234,999 Variable 172,770 Gross profits $529,631 Less: operating expenses Fixed 209,577 Variable 57,582 Operating profits $262,472 Less: interest expense 30,934 Net profit before taxes $231,538 Less: taxes (rate 25%) 57,885 Net profits after taxes $173,653 Print Done
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