Question
My store has sales in 2022 of $525,000. The forecast for 2023 uses the following assumptions: sales growth of 18%, COGS as a percentage of
My store has sales in 2022 of $525,000. The forecast for 2023 uses the following assumptions: sales growth of 18%, COGS as a percentage of sales of 65%, yearly fixed expenses of $12,800, yearly depreciation expense of $10,000, interest expense on their existing loan of 6.0%, corporate tax rate of 21%. Complete the 2022 Income Statement and forecast the 2023 Proforma Income Statement. What is EBIT for 2022? What is the Gross Profit for 2023? What is the Net income for 2023?
Step by Step Solution
3.50 Rating (163 Votes )
There are 3 Steps involved in it
Step: 1
Sales for 2022 525000 Cost of Goods Sold COGS 343750 Gross Profit 181250 Yearly Fixed Ex...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
