Question
The S&H Construction Company expects to have total sales next year totaling $15,500,000. In addition, the firm pays taxes at 35 percent and will owe
The S&H Construction Company expects to have total sales next year totaling
$15,500,000.
In addition, the firm pays taxes at
35
percent and will owe
$287,000
in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be
55
percent of sales and operating expenses will total
25
percent. What is your estimate of the firm's net income (after taxes) for the coming year?
Question content area bottom
Part 1
Complete the pro-forma income statement below:(Round to the nearest dollar.)
Pro-Forma Income Statement | ||
Sales | $ |
|
Cost of goods sold |
|
|
Gross profit | $ |
|
Operating expenses |
|
|
Net operating income | $ |
|
Interest expense |
|
|
Earnings before taxes | $ |
|
Taxes |
| |
Net income | $ |
|
2-1 q4
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