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Preparing tax forma income statement

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Reference no: EM13878629

Connelly Corporation is a preparing a tax forma income statement for the 4th quarter. Solve for earnings after tax

Raw materials is 12 percent of sales

Labor is 16 percent of sales

Utilities is $4600 plus 4 percent of sales

Factory over head is 5 percent of sales

Selling and admin is $6800 plus 5 percent of sales

Fixed overhead is $40,000 per quarter

Depreciation will be $50,000

Interest Expense will be $6,000

Tax rate is 35%

The marketing department predicts fourth quarters sales is $218,000.

What I have so far: How do I solve for taxes?

TOTAL SALES      $218,000

RAW MATERIAL                $26,160

LABOR $34,880.00

Utilities                 $17,680.0

FACTORY OVERHEAD      $10,900.0

SELLING AND ADMIN     17700

Fixed     $40,000

Depreciation      50000

Interest                $6,000

 

TOTAL SALES      $14,680.00

Reference no: EM13878629

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