Forecast income statements, Financial Accounting

Assignment Help:

The forecast income statements are as follows:

448_Forecast income statements.png

WORKINGS

Sales = 50000 × 1·12 = $56000000

Variable cost of sales = 30000 × 1·12 × 0·85 = $28560000

Fixed cost of sales = 30000 × 0·15 = $4500000 (assumed to be constant)

Administration costs = 14000 × 1·05 = $14700000

Interest under debt financing = 300 + (5000 × 0·1) = 300 + 500 = $800000


Related Discussions:- Forecast income statements

Management and operational control, Management and operational control: Co...

Management and operational control: Cost of goods sold and gross margin analysis, profit as net income analysis, operating expense analysis, contribution analysis and analysis of

Explain briefly two methods of calculating depreciation, QUESTION 1: Th...

QUESTION 1: The Alpha Company Ltd was registered with Nominal Capital of 60,000 Equity shares of Rs.10 each. The following were the ledger balances on 31st March 2011.

Clarity and transparency in project, Clarity and transparency The terms...

Clarity and transparency The terms of the payment package must be clear and transparent so that directors and shareholders are in no doubt as to when rewards have been earned o

Calculate the weighted average cost of capital, Verizon Corporation has 55%...

Verizon Corporation has 55% equity and 45% debt (market values) in its capital structure. The pretax cost of debt is 7%, and that of equity 12%. The total value of the company is $

Specific accounting and related issues , Joe seeks your assistance in asses...

Joe seeks your assistance in assessing these investment options. He has five particular concerns, as outlined below. 1. Regarding his photographic studio, which would be a bette

Retirement of a partner, Retirement of a partner When one of the partners...

Retirement of a partner When one of the partners retires ante the others will continue trading, the n it is important that he gets a share of the goodwill that he helped create i

Accounting objectives, Accounting objectives Accounting has two main ob...

Accounting objectives Accounting has two main objectives: To assist control over the assets and liabilities, and the income and expenditure of the enterprise; and To

Return on Equity, Maghrabi Enclosure follows a moderate current asset inves...

Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f

According to the management perspective cost , Cost: - According to the ma...

Cost: - According to the management perspective cost is define as a reduction in the value of assets for to secure benefit or gain. In other words cost is the different expenses

Expected opportunity loss decision criterion, The construction manager for ...

The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd