April 20, 2014

Homework Help: accountyin question

Posted by irene thomas on Sunday, November 18, 2012 at 11:05pm.

how does one prepare a pro forma income with different assumptions given the numbers for current year
sales revenue 2,000,000
Cost of goods sold 1,400,000
Gross profit 600,000
Selling & admin.expenses 260,000
Net income 340,000

Cost of goods sold is usually 70% of sale revenue and selling administrative expenses are usually 10% if sales plus fixed cost of $60,000.

What percentage increase in sales would enable the company to reach its goal? show your answer with pro forma income statement. Please show me how to go about and get the answer/ Thanks

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