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XV, Inc. estimates that its sales in 2019 will be $6,000,000. The firm plans to pay cash dividends of $100,000 during 2019. XV. Inc.'s income
XV, Inc. estimates that its sales in 2019 will be $6,000,000. The firm plans to pay cash dividends of $100,000 during 2019. XV. Inc.'s income statement for the year ended December 31, 2018 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions. Sales revenue $5,000,000 Less: Cost of goods sold 2,750,000 Gross profits $2,250,000 Less: Operating expenses 850,000 Operating profits $1,400,000 Less: Interest expense 200,000 Net profits before taxes $1,200,000 Less: Taxes (rate 40%) 480,000 Net profits after taxes $ 720,000 Less: Cash dividends 288,000 To retained earnings 432.0000 The amount that will transfer from the 2019 income statement to the 2019 balance sheet as an addition to retained earnings is
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