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

Reasons for holding inventory, The dictionary explains the word 'inventory'...

The dictionary explains the word 'inventory' as stock of goods. Although, inventory implies that such type of assets that will be disposed of in future in the common course of busi

Use net present value and payback period method, Given the following cash f...

Given the following cash flows for projects A and B:   Year      Project A   Project B     0       -100,000     -150,000   (Project Cost)     1         25,000

Associate companies , ASSOCIATE COMPANIES (IAS 28) An associate company i...

ASSOCIATE COMPANIES (IAS 28) An associate company is a company in which the investing company owns more than 20% but less than 50% of the voting rights.  This means that the inve

Illustration of head office records-branches, Illustration of Head office r...

Illustration of Head office records In order to provide a check that branch managers and staff deal properly with goods and cash passing through their hands, goods are normally

Illustration regarding profit that head office can claim, Illustration rega...

Illustration regarding profit that head office can claim E Ltd sets up a branch in Nyeri on 1 July 2001. Goods are sent to branch at an invoice price which is 10% above cost. S

Mortgage, Ask questiJohn’s away at the moment, and his email provider has a...

Ask questiJohn’s away at the moment, and his email provider has a size limit on the data that can be sent via email. What is a potential solution for John, and name a provider that

Express trusts-trusts laws and accounts, EXPRESS TRUSTS Creation...

EXPRESS TRUSTS Creation : An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) Completely an

What are some examples of co branded foods?, What are some examples of co b...

What are some examples of co branded foods? is cool ranch doritos one?

Schedule of cost of goods, The following information was taken from the led...

The following information was taken from the ledger of Jefferson Industries, Inc.: Direct labor $85,000 Administrative expenses $59,0

Treasury security, The real risk-free rate is 3%. Inflation is usual to be ...

The real risk-free rate is 3%. Inflation is usual to be 3% this year, 4% next year, and then 5% afterthat. The maturity risk premium is estimated to be 0.0007 x (t - 1), where t =

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