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Rimier Corp. forecasts sales of $653,000 for 2020. Assume the firm has fixed costs of $245,000 and variable costs amounting to 31% of sales. Operating

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Rimier Corp. forecasts sales of $653,000 for 2020. Assume the firm has fixed costs of $245,000 and variable costs amounting to 31% of sales. Operating expenses are estimated to include fixed costs of $29,000 and a variable portion equal to 5.6% of sales. Interest expenses for the coming year are estimated to be $22,000. Estimate Rimier's net profits before taxes for 2020. Compute the estimated net profits before taxes below: (Round to the nearest dollar.) Rimier Corp Pro Forma Income Statement 2020 Sales revenue Less: Cost of goods sold Fixed cost Variable cost Gross profits Less: Operating expenses Fixed Expense Variable expenses Operating profits Less: Interest expense (all fixed) Net profits before taxes

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