w] 5 ? 5 Tuolo [Compatibility Mode] - Word (Product Activation Failed) MAILINGS REVIEW VIEW FILE HOME INSERT DESIGN PAGE LAYOUT REFERENCES ! qais swiedan Cut AA * es TT ALT EB Copy AaBbcci 1 Normal 1 No Spac... Heading 1 Heading 2 Subtle Em... Find - mac Replace Select- Paste B TU abe x x A - aly Title Subtitle Format Painter Clipboard Font Paragraph Styles Editing Q1: The marketing department of Arab company estimates that its sales in 2013 will be $1.5 million. Interest expense is expected to remain unchanged at $35.000. The firm's income statement for the year ended December 31, 2012, is given below, along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2013. 7 marks Income Statement for the Year Ended December 31, 2012 Sales revenue $1,400,000 Less: Cost of goods sold 910,000 Gross profits $ 490,000 Less: Operating expenses 120.000 Operating profits $ 370,000 Less: Interest expense 35,000 Net profits before taxes $ 335,000 Less: Taxes (rate = 40%) 134,000 Net profits after taxes $ 201,000 Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2012 Cost of goods sold Fixed cost $210,000 Variable cost 700,000 Total costs $910.000 Activate Windows Go to Settings to activate Windows. PAGE 1 OF 2 83 OF 271 WORDS DE ENGLISH (UNITED KINGDOM) 100% Type here to search AD ENG 5:57 AM 5/22/2020 W] 5 ? 5 Tule Compatibility Mode] - Word (Product Activation Failed) MAILINGS REVIEW VIEW FILE HOME INSERT DESIGN PAGE LAYOUT REFERENCES ! qais swiedan Cut Times New Ro - 12 - A A * ess TT ALT Le Copy AaBbCcDc AalbCcDc AaBbc AaBbccAaB Aabbcc AaBb CCD 1 Normal 1 No Spac... Heading 1 Heading 2 Subtle Em... Find - mac Replace Select- Paste BIU - abe x, X* A - aly Title Subtitle Format Painter Clipboard Font Editing Paragraph Styles breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2013. 7 marks Income Statement for the Year Ended December 31, 2012 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes $1,400,000 910,000 $ 490,000 120,000 $ 370,000 35,000 $ 335,000 134,000 $ 201,000 Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2012 $210,000 700,000 $910,000 Cost of goods sold Fixed cost Variable cost Total costs Operating expenses Fixed expenses Variable expenses Total expenses $ 36,000 84,000 $120,000 Activate Windows Go to Settings to activate Windows. PAGE 1 OF 2 271 WORDS DX ENGLISH (UNITED STATES) 100% . Type here to search o AD ENG 5:58 AM 5/22/2020
