Question
A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $3000000. Using the
A&P is interested in predicting its income statement for the year 2021. The company estimates that its sales in 2021 will be $3000000. Using the fixed and variable cost data, Find the following:
A&P Company
Income statement
For the Year Ended December 31, 2020
Sales 2000000
Less: Cost of goods sold
Variable cost 1450000
Fixed cost 10000
Gross profit 540000
Less: Operating expenses
Selling expense (all variable) 20000
Utility expense (all variable) 34000
Depreciation expense(all variable) 6000
Operating profit 480000
Less: Interest expense ( all fixed) 12000
Net profit before taxes 468000
Less: Taxes (10%) 46800
Net profit after taxes 421200
A&P's Total cost of goods sold in 2021:Answer for part 1 A&P's Depreciation Expense in 2021:
Answer for part 2 A&P's Total operating expenses in 2021
Answer for part 3 A&P's Net profit after taxes in 2021:
Answer for part 4
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