Question
The income statement for Your Mom's Corporation appears below (amounts in millions): Total revenue $31,683.5 Cost of revenue 20,947.5 Gross profit 10,736.0 Total operating expenses
The income statement for Your Mom's Corporation appears below (amounts in millions):
| Total revenue | $31,683.5 |
| Cost of revenue | 20,947.5 |
| Gross profit | 10,736.0 |
| Total operating expenses | 8,100.0 |
| Operating income or loss 2,636.0 | |
Other income.expense: 11.0
Earnings before interest and taxes: $2,647.0
Interest expense: 334.7
Income before ta: 2,312.3
Income tax expense: 809.3
Net income: $1,503.0
How much is pro forma net income for the next year if sales growth is forecasted to be 10% per year, the income tax rate is 35.0%, and all expenses except for interest vary as a function of sales?
| A. | $1,010.75 million | |
| B. | $1,095.21 million | |
| C. | $1,675.05 million | |
| D. | $2,218.00 million |
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
