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The forecast income statements are as follows:
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
what is closing entry
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Illustrations of Income statement Profit/Loss on disposal of non-current assets Material write down or reversal of write down on assets e.g. PPE inventory and debtors.
what are types of accounting concepts
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