Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer as soon as possible Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31,

please answer as soon as possible image text in transcribed
image text in transcribed
Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021 for Tesla, Inc. Tesla, Inc. estimates that its sales in 2021 will be 300000 The firm plans to pay cash dividends of 7000 during 2021 Tesla, Inc.'s income statement for the year ended December 31, 2020 is shown below: Income statement Tesla, Inc. For the year ended December 31, 2020 Sales Revenue $200000 Less: Cost of Goods sold $50000 fixed $50000 variable $100000 Gross profits Less: Operating expenses fixed 5000 5000 Variable Operating profits Less: Interest expense Profit before tax $90000 10000 $80000 32000 Less: Taxes (40%) Net profit after taxes Less: Cash dividends $48000 8000 To retained earnings $40000 What is the company's cost of goods sold in the year 20212 What is the company's gross profit in the year 20218 What are the company's operating expenses in the year 20212 What is the company's operating profit in the year 2021 What is the company's net income in the year 20212 How much goes to the company's retained earnings

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

Step: 3

blur-text-image

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

Risk Sensitive Investment Management

Authors: Mark H A Davis, Sébastien Lleo

1st Edition

9814578037, 978-9814578035

More Books

Students also viewed these Finance questions