Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Tesla, Inc. Tesla, Inc.

image text in transcribed
image text in transcribed
Use the fixed and variable method to prepare a pro forma income statement for the year ended December 31, 2021, for Tesla, Inc. Tesla, Inc. estimates that its sales in 2021 will be 300000. The firm plans to pay cash dividends of 9000 during 2021. Tesla, Inc.'s income statement for the year ended December 31, 2020 is shown below: Income statement Tesla, Inc. For the year ended December 31, 2020 Sales Revenue $200000 Less: Cost of Goods sold fixed $50000 $50000 variable Gross profits $100000 Less: Operating expenses 5000 fixed 5000 variable Operating profits $90000 Less: Interest expense 10000 Profit before tax $80000 32000 Less: Taxes (40%) Net profit after taxes $48000 Less: Cash dividends 8000 To retained earnings $40000 What is the company's cost of ante What is the company's cost of goods sold in the year 2021? What is the company's gross profit in the year 2021? What are the company's operating expenses in the year 2021? What is the company's operating profit in the year 2021? What is the company's net income in the year 2021? How much goes to the company's retained earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions