Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pro forma income statements. Green Planet, a restaurant supply company, has the following income statement accounts for 2013: Revenue $12,350,000 Sales Returns $184,120 COGS $5,541,300

image text in transcribed

Pro forma income statements. Green Planet, a restaurant supply company, has the following income statement accounts for 2013: Revenue $12,350,000 Sales Returns $184,120 COGS $5,541,300 Fixed Costs $1,986,000 SG & A Costs $1,412,900 Depreciation $966,340 Interest Expense $806,790 Construct the income statement for 2013 with a tax rate of 39%. Then construct pro forma income statements for the years 2014, 2015, and 2016 if the company expects projected sales to rise annually at 3.5% and all the accounts have the same percentage of sales as in 2013. Redo the pro forma statements for 2014, 2015, and 2016 if fixed costs are truly fixed and remain at $1,986,000, but all other accounts listed will be at the same percentage of sales for the next three years as in 2013. Find the growth in net income each year. .... Construct the income statement for 2013 with a tax rate of 39%. Complete the income statement for 2013 below: (Round to the nearest dollar.) Income Statement 2013 Revenue $ Returns $ Net Revenue $ Costs $ COGS Fixed Costs $ SG and A Costs $ Depreciation $ EBIT $ Interest Expense $ Taxable Income $ Taxes $ Net Income $

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

Forensic Analytics Methods And Techniques For Forensic Accounting Investigations

Authors: Mark J. Nigrini

2nd Edition

1119585767, 9781119585763

More Books

Students also viewed these Accounting questions

Question

1 Why might people resist change?

Answered: 1 week ago