1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Thepotemich [5.8K]
3 years ago
10

Use the​ percent-of-sales method to prepare a pro forma income statement for the year ended December​ 31, 2015, for Hennesaw​ Lu

mber, Inc. Hennesaw​ Lumber, Inc. estimates that its sales in 2015 will be​ $4,500,000. Interest expense is to remain unchanged at​ $105,000 and the firm plans to pay cash dividends of​ $150,000 during 2015. Hennesaw​ Lumber, Inc.'s income statement for the year ended December​ 31, 2014 is shown below. From your preparation of the pro forma income​ statement, answer the following multiple choice question. Income Statement Hennesaw Lumber, Inc. For the Year Ended December 31, 2014 Sales Revenue $4,200,000 Less: Cost of goods sold 3,570,000 Gross profits $ 630,000 Less: Operating expenses 210,000 Operating profits $ 420,000 Less: Interest expense 105,000 Net profits before taxes $ 315,000 Less: Taxes (40%) 126,000 Net profits after taxes $ 189,000 Less: Cash dividends 120,000 To: Retained earnings $ 69,000 The pro forma net profits after taxes for 2015 are​ ________.
Business
1 answer:
777dan777 [17]3 years ago
7 0

Answer:

207,000

Explanation:

We can find the net profit after tax under the percent of sales method as follows. workings are explained as in order to estimate the net profit after tax we need to estimate the variable cost according to estimated sales.

Sales                                                               $4,500,000

Cost of Goods Sold                                       ($3,825,000)

((3,570,000/4,200,000) x 4,500,000)

Gross Profit                                                      $675,000

Operating Expenses                                      ($225,000 )

(( 210,000 / 4,200,000) x 4,500,000 )          

Operating Profits                                           $450,000

Interest Expense                                             ($105,000 )

Net Profit before Taxes                                    $345,000

Taxes ( 40 %)                                                    ($138,000 )

Net Profit after Taxes                                     207,000

You might be interested in
Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doc
Katarina [22]

Answer:

$300

Explanation:

Given that s a health insurance program with co-payments of $10 per doctor visit.

Thus,

amount paid by insurance in 1 visit = $10

Amount paid by insurance in 6 visit = $10*6 = $60

Total bill charged by the doctor in 6 visit = 360

Amount paid by the consumer = Total bill charged by the doctor in 6 visit - Amount paid by consumer in 6 visit = $360 - $60 = $300

Since , consumer is the third party payer he pays $300 out of total $360 bill charged by the doctor.

In fraction ,portion of bill paid by the third party payer = 300/360 = 5/6

Thus, 5/6 portion of bill is paid by third party payer.

3 0
3 years ago
Which of the following is true when there is excess demand for a product in a market?
tigry1 [53]
Surplus hope it helps since you did not put any choices ......
7 0
3 years ago
A company that packages and distributes fruit for on-the-go lunches has established a differentiation. they are packaged in such
SSSSS [86.1K]

The correct answer is forward integration. Forward integration is being defined as a business strategy by which it is associated with the vertical integration of where business activities are being expanded by means of including the control of the direct distribution or the supply of the products of the company.

6 0
3 years ago
New seasons market, a locally owned and operated one-stop grocery store based in portland, oregon is committed to providing loca
Dmitry_Shevchenko [17]
I would say that New Seasons is creating a model for a store which sells local products and ones which its' customers approve of ie it could be for a particular type of sardine for example or a particular ethnic food like tamales so that its customers wishes are taken into account and acted upon.
5 0
3 years ago
What impacts the growth of small business
In-s [12.5K]

Answer:

Variation in size, scope and buoyancy of demand in local markets is likely to affect growth opportunities. ... A business set up to exploit an identified market opportunity would be expected to have stronger growth orientation than one set up as a result of 'push' factors such as a lack of alternative opportunities.

8 0
3 years ago
Other questions:
  • Excerpts from Huckabee Company's December 31, 2018 and 2017, financial statements are presented below: 2018 2017 Accounts receiv
    7·1 answer
  • Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's has a fixed asset turnover rate of
    8·1 answer
  • When an employer takes the time to explain a mistake you have made and provides suggestions for avoiding that same mistake in th
    11·2 answers
  • Which of the following statements is CORRECT? a. Suppose some of a publicly-traded firm's stockholders are not diversified; they
    10·1 answer
  • A firm operated at 80% of capacity for the past year, during which fixed costs were $330,000, variable costs were 70% of sales,
    10·1 answer
  • The level to which productive resources are used efficiently is called _______.
    15·1 answer
  • What type of value may consumers be interested in if they are looking for the potential rate of return
    11·1 answer
  • If you have a fixed rate loan for three years with monthly installments, what equation will best allow you to calculate the full
    11·1 answer
  • If reputable companies such as IBM and Apple have been charged with using bribes to obtain sales, why should you worry about bei
    6·1 answer
  • in construction of a new housing development, which factor of production can be catergorized by land?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!