sadly, the accounting manager of Delta Plastics, Inc., was unexpectedly terminated, due to suspicion of an embezzlement at his prior position with Superior Chocolates.

Upon arrival at Delta,you found the following information in the books and records of Delta Plastics:

Sales$525,000

Cost of goods sold 200,000

General and administrative

expenses 62,000

Depreciation expenses 8,000

Interest expense 12,000

Income taxes 97,200

From the above information you are to prepare an income statement in $s as well as a common size income statement.

1. Delta's net income forecast was $135,000 after taxes. Did Delta achieve their net income goal? Explain.
2. During the past 5 years Delta's cost of goods sold as been running between 35 and 37 per cent of sales. Will Delta be pleased with the results you have calculated for the current year? Explain.
3. Delta is somewhat concerned about increasing sales in order to generate more net income. Their current plant is running at 98% capacity. What would you recommend they do in order to increase sales, considering their current capacity? Give at least two