1. Sales Revenue should increase by 2% in 2021; 3% in 2022 and decreased by 3% in 2023 and remains the same on 2024. 2. Cost of Sales increased to 4 576 000 in 2021 and increased by 2% for the next TWO years and increased by 1% for the last year of projection. 3. Operating Expenses will only increase in 2021 and 2024 by 2%. 4. Income Tax Rate is 30%. 2020 (ACTUAL) 2021 2022 2023 2024 SALES 9 345 255 3. 10. 17. 24. LESS: COSTS OF SALES 3 445 554 4. 11. 18. 25. GROSS PROFIT 5 899 701 5. 12. 19. 26. 13. 20. 27. LESS: OPERATING 4 140 000 6. EXPENSES 28. 21. 14. 1759 701 7. 29. NIBT 22. 15. 1. 527910.3 8. 30 LESS: INCOME TAX 16. 23. 2. 1231790.7 9.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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for 2022
1. Sales Revenue should increase by 2% in 2021; 3% in 2022 and decreased by 3% in 2023 and remains the same on 2024.
2. Cost of Sales increased to 4 576 000 in 2021 and increased by 2% for the next TWO years and increased by 1% for the last year of projection.
3. Operating Expenses will only increase in 2021 and 2024 by 2%.
4. Income Tax Rate is 30%.
2020 (ACTUAL)
2021
2022
2023
2024
SALES
9 345 255
3.
10.
17.
24.
LESS: COSTS OF SALES
3 445 554
4.
11.
18.
25.
GROSS PROFIT
5 899 701
5.
12.
19.
26.
20.
27.
4 140 000
6.
13.
LESS: OPERATING
EXPENSES
28.
21.
14.
1 759 701
7.
29.
NIBT
22.
15.
1.
527910.3
8.
30.
23.
LESS: INCOME TAX
16.
9.
2.
1231790.7
NIAT
Transcribed Image Text:1. Sales Revenue should increase by 2% in 2021; 3% in 2022 and decreased by 3% in 2023 and remains the same on 2024. 2. Cost of Sales increased to 4 576 000 in 2021 and increased by 2% for the next TWO years and increased by 1% for the last year of projection. 3. Operating Expenses will only increase in 2021 and 2024 by 2%. 4. Income Tax Rate is 30%. 2020 (ACTUAL) 2021 2022 2023 2024 SALES 9 345 255 3. 10. 17. 24. LESS: COSTS OF SALES 3 445 554 4. 11. 18. 25. GROSS PROFIT 5 899 701 5. 12. 19. 26. 20. 27. 4 140 000 6. 13. LESS: OPERATING EXPENSES 28. 21. 14. 1 759 701 7. 29. NIBT 22. 15. 1. 527910.3 8. 30. 23. LESS: INCOME TAX 16. 9. 2. 1231790.7 NIAT
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