Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allen Products, Inc wants to do a scenario analysis for the upcoming year. The pessimistic prediction for sales is $904,000; the most likely amount of

Allen Products, Inc wants to do a scenario analysis for the upcoming year. The pessimistic prediction for sales is $904,000; the most likely amount of sales is $1,120,000; and the optimistic prediction is $1,282,000. Allen's income statement for the most recent year is show.

Allen Products, Inc. Income Statement for the Year Ended December 31, 2015

Sales revenuse $936,700

Less: cost of good sold $420,578

Gross profits $516,122

Less: operating expenses $192,024

Operating profist $324,098

Less: interest expense 31,848

Net profit before taxes $292,250

Less: taxes (rate 30%) 87,675

Net profits after taxes $204,575

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_2

Step: 3

blur-text-image_3

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

Financial Valuation Workbook Step By Step Exercises To Help You Master Financial Valuation

Authors: James R. Hitchner, Michael J. Mard

2nd Edition

0471761184, 978-0471761181

More Books

Students also viewed these Finance questions