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Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2021, for General Systems, Inc. General Systems, Inc.
Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2021, for General Systems, Inc. General Systems, Inc. estimates that its sales in 2021 will be 6000000 . Interest expense is to remain unchanged at $105000 and the firm plans to pay cash dividends of 170000 during 2021. General Systems, Inc.'s income statement for the year ended December 31, 2020 is shown below: Income statement General Systems, Inc. For the year ended December 31,2020 Sales Revenue $4200000 Less: Cost of Goods sold 3570000 Gross profits $630000 Less: Operating expenses 210000 Operating profits $420000 Less: Interest expense 105000 Profit before tax $315000 Less: Taxes (30%) 94,500 Net profit after taxes $220500 Less: Cash dividends 120000 To retained earnings $100500 What is the cost of goods sold in year 2021? Answer for part 1 What is the gross profit in year 2021? Answer for part 2 What are the operating expenses in year 2021? Answer for part 3 What is the operating profit in year 2021? Answer for part 4 What is the profit before tax in year 2021? Answer for part 5 What is the profit after tax in year 2021? Answer for part 6 How much goes to retained earnings in year 2021? Answer for part 7
Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2021, for General Systems, Inc.
General Systems, Inc. estimates that its sales in 2021 will be 6000000 . Interest expense is to remain unchanged at $105000 and the firm plans to pay cash dividends of 170000 during 2021. General Systems, Inc.'s income statement for the year ended December 31, 2020 is shown below:
Income statement
General Systems, Inc.
For the year ended December 31,2020
Sales Revenue
$4200000
Less: Cost of Goods sold
3570000
Gross profits
$630000
Less: Operating expenses
210000
Operating profits
$420000
Less: Interest expense
105000
Profit before tax
$315000
Less: Taxes (30%)
94,500
Net profit after taxes
$220500
Less: Cash dividends
120000
To retained earnings
$100500
What is the cost of goods sold in year 2021?
Answer for part 1
What is the gross profit in year 2021?
Answer for part 2
What are the operating expenses in year 2021?
Answer for part 3
What is the operating profit in year 2021?
Answer for part 4
What is the profit before tax in year 2021?
Answer for part 5
What is the profit after tax in year 2021?
Answer for part 6
How much goes to retained earnings in year 2021?
Answer for part 7
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
