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Thank You in advance for whoever is helping me!. All the blank/red spaces are wrong. I just need help its so hard to figure out.

Thank You in advance for whoever is helping me!. All the blank/red spaces are wrong. I just need help its so hard to figure out. Thank YOuimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $937,100 Less: cost of good sold Fixed 215,673 Variable 184,469 Gross profits $536,958 Less: operating expenses Fixed 132,722 Variable 56,572 Operating profits $347,664 Less: interest expense 32,799 Net profit before taxes $314,865 Less: taxes (rate 25%) 78,716 Net profits after taxes $236,149 Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $937,100 Less: cost of good sold 400,142 Gross profits $536,958 Less: operating expenses 189,294 Operating profits $347,664 Less: interest expense 32,799 Net profit before taxes $314,865 Less: taxes (rate 25%) 78,716 Net profits after taxes $236,149 Pro forma income statement-Scenario analysis Allen Products LP, wants to do a scenario analysis for the coming year. The pessimistic prediction for sales is $894,000; the most likely amount of sales is $1,134,000; and the optimistic prediction is $1,281,000. Allen's income statement for the most recent year is shown here . a. Use the percent-of-sales method, the income statement for December 31, 2019, and the sales revenue estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming year. b. Explain how this method could result in overstatement of profits for the pessimistic case and understatement of profits for the most likely and optimistic cases. c. Restate the pro forma income statements prepared in part a. to incorporate the following assumptions about the 2019 costs: $215,673 of the cost of goods sold is fixed; the rest is variable. $132,722 of the operating expenses is fixed; the rest is variable. All the interest expense is fixed. (Please see: 5.) d. Compare your findings in part c. to your findings in part a. Do your observations confirm your explanation in part b? Allen Products, Inc. for the Year Ended December 31, 2020 Pessimistic Sales $ 894,000 Less: Cost of goods sold 446,106 49.9 % Gross profits $ 447,894 229,758 25.7 % Less: Operating expense Operating profits $ 218,136 Less: Interest expense $ 30,396 3.4 % Net profits before taxes $ 187,740 Taxes (30%) $ 56,322 $ Net profits after taxes 131,418 Complete the pro forma income statement for the year ending December 31, 2020 that is shown below (most likely scenario): (Round the percentage of sales to one decimal place and the pro forma income statement accounts to the nearest dollar) Allen Products, Inc. for the Year Ended December 31, 2020 Most Likely 1,133,000 Sales Less: Cost of goods sold $ 565,367 49.9 % $ 567,633 Gross profits Less: Operating expense Operating profits 291,181 25.7 % $ 276,452 Less: Interest expense 38,522 3.4 % Net profits before taxes 237,930 Taxes (30%) $ 71,379 $ Net profits after taxes 166,551 Complete the pro forma income statement for the year ending December 31, 2020 that is shown below (optimistic scenario): (Round the percentage of sales to one decimal place and the pro forma income statement accounts to the nearest dollar.) Pro Forma Income Statement Allen Products, Inc. for the Year Ended December 31, 2020 Optimistic $ 1,273,000 Sales Less: Cost of goods sold 635,227 49.9 % Gross profits 637,773 Less: Operating expense 327,161 25.7 % $ $ Operating profits 310,612 Less: Interest expense $ 43,282 3.4 % Net profits before taxes $ 267,330 80,199 Taxes (30%) $ Net profits after taxes $ 187,131 Pessimistic Sales $ 894,000 Less: Cost of goods sold Fixed $ 286,728 Variable $ 172,448 19.2895 % $ 434,824 Gross profits Less: Operating expense Fixed 178,181 Variable $ 59,700 6.6778 % Operating profits 196,943 31,848 Less: Interest expense Net profits before taxes 165,095 Taxes (30%) 49,529 115,566 Net profits after taxes Sales $ 1,133,000 Less: Cost of goods sold Fixed $ 286,728 Variable $ 218,550 19.2895 % $ 627,722 Gross profits Less: Operating expense Fixed $ 178,181 Variable $ 75,659 6.6778 % $ 373,882 Operating profits Less: Interest expense Net profits before taxes $ 31,848 $ 342,034 Taxes (30%) $ 102,610 Net profits after taxes $ 239,424 Optimistic $ 1,273,000 Sales Less: Cost of goods sold Fixed 286,728 245,555 Variable $ 19.2895 % Gross profits 740,717 Less: Operating expense Fixed $ 178,181 Variable $ 85,008 6.6778 % Operating profits 477,528 Less: Interest expense $ 31,848 Net profits before taxes $ 445,680 Taxes (30%) $ 133,704 $ Net profits after taxes 311,976

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