Pro-Forma Assumptions 2008 Sales Growth COGS % of Sales 40% 55% Increase in Wages $300,000 Increase in Rent Expense 20% Marketing & Advertising % of Sales 3.5% Inventory Days for 90 Loan for Patio $1,060,000 Interest Rate on Loan for Patio Interest Rate for All Other Loans Tax Rate Other Income Day Sales Outstanding Minimum Cash % of Sales 9% 16% 23% $0 1.3 0.40% Pro-Forma Income Statement Net sales Cost of goods sold $ 12,127,828 $ 6,670,305 Gross profit $ 5,457,522 Operating expenses: Administrative expenses $ 343,454 Amortization $ 324,946 Insurance $ 61,032 Marketing & advertising $ 424,474 Miscellaneous $ 264,009 Rent $ 623,887 Repairs & maintenance $ 417,819 Security $ 193,281 Supplies & expenses $ 247,142 Telephone $ 199,752 Travel & entertainment $ 92,252 Utilities $ 74,214 Vehicle expenses $ 86,834 Wages $ 1,221,768 Total operating expenses $ 4,574,862 Operating income $ 882,660 $ Other income Interest expense $ 612,751.68 Net income (loss) $ 269,908 Interest expense $ 612.751.68 Net income (loss) 269,908 Additional comments: How do you calculate interest expense?
Pro-Forma Assumptions 2008 Sales Growth COGS % of Sales 40% 55% Increase in Wages $300,000 Increase in Rent Expense 20% Marketing & Advertising % of Sales 3.5% Inventory Days for 90 Loan for Patio $1,060,000 Interest Rate on Loan for Patio Interest Rate for All Other Loans Tax Rate Other Income Day Sales Outstanding Minimum Cash % of Sales 9% 16% 23% $0 1.3 0.40% Pro-Forma Income Statement Net sales Cost of goods sold $ 12,127,828 $ 6,670,305 Gross profit $ 5,457,522 Operating expenses: Administrative expenses $ 343,454 Amortization $ 324,946 Insurance $ 61,032 Marketing & advertising $ 424,474 Miscellaneous $ 264,009 Rent $ 623,887 Repairs & maintenance $ 417,819 Security $ 193,281 Supplies & expenses $ 247,142 Telephone $ 199,752 Travel & entertainment $ 92,252 Utilities $ 74,214 Vehicle expenses $ 86,834 Wages $ 1,221,768 Total operating expenses $ 4,574,862 Operating income $ 882,660 $ Other income Interest expense $ 612,751.68 Net income (loss) $ 269,908 Interest expense $ 612.751.68 Net income (loss) 269,908 Additional comments: How do you calculate interest expense?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 57BE
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