Silver Company has asked you to prepare a pro-forma income statement for the coming year. The following
Question:
Silver Company has asked you to prepare a pro-forma income statement for the coming year. The following information is available:
Expected sales revenue
$\$ 1,240,000$
\section*{Manufacturing costs:}
Variable cost of goods sold . . . . . . . . . . . . . . 625,000 Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . 125,000 Selling expenses:
Variable expenses . . . . . . . . . . . . . . . . . . . . . 140,000 Fixed expenses . . . . . . . . . . . . . . . . . . . . . . . $\quad 45,000$
\section*{Administrative expenses:}
Variable expenses . . . . . . . . . . . . . . . . . . . . . 45,000 Fixed expenses . . . . . . . . . . . . . . . . . . . . . . . . 160,000
\section*{Other:}
Interest expense . . . . . . . . . . . . . . . . . . . . 28,000 Income tax rate . . . . . . . . . . . . . . . . . . . . . $35 \%$
Prepare a pro-forma contribution margin income statement for Silver Company.
Step by Step Answer:
Survey Of Accounting
ISBN: 9780538846172
1st Edition
Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen