File Home Insert Layout References Review View Help Table Editing Times 11 A A BI U AA Page 1 of 2 400 words English (U.S.) Text Predictions: On Type here to search Redinc. a publicly traded software company wishes to prepare a budgeted income statement for December 31, 2020. They project sales for 2020 will be twice as large as the 2019 sales (sales grew to $343,750 in 2019). The following additional information has also been collected Merchandise/Inventory costs are estimated to be 20% of annual sales Calculate: 1) The projected sales for Redinc: Selling and Admin costs are 30% of annual sales Total depreciation for the year will be $110,000 Tax rate: 35% Outstanding number of shares 68,750, Shares are trading at $17.50. Industry Averages: Debt Ratio: 56% R.O.A: 12.5%, R.O.E. 14%, E.P.S $1.03 Complete the following budgeted income statement_(10 MARKS) 2) Projected Selling and Admin costs for are: 3) Merchandise/Inventory costs are estimated Budgeted Income Statement December 2020 Sales 687,500 Merchandise/Inventory costs 137,500 Selling and Admin costs 206,250 Total Cost 343,750 Depreciation 110,000 Net Income before Taxes (NIBT) 233,750 Taxes (35%) 81,813 Net Income after Taxes (NIAT) 151,938 4) The total cost: Share Dictate Editor Comments 100% + Give Feedback to Microsoft ENG 8:47 AM 2020-12-15 1