Assume that you are one of the owners of Pinoy Corporation. Upon reviewing the project income statements as shown in Tables 7.3 and 7.4 you realized that salaries are understated because it only accounts for the 12 months of salary of each employee and does not include the 13th month pay, which is required by law. You also feel that cost of goods sold ought to be computed at 45% instead of 40% of salles revenues. Using a spreadsheet program, revise the projected income statements for the first year and the first three years of the business. Table 7.4. Pinoy Corporation, Projected Income Statement,First Three Years (in thousand pesos)Year 1Year 2Year 3Sales5820100.006402100.007042.2100Less: Cost of goodssold232840.002560.840.002816.8840.00Gross margin4225.32349260.003841.260.0060.00Operating expensesSalaries108016.87113416.1090015.46Rent3605.623605.113606.19 Table 7.3 Pinoy Corporation, Projected Income Statement, First Year by Month (in thousand pesos)JanFebMarAprMayJunJulyAugSepOctNovDecTotal288.0 420.0 480.0 500.0 600.0 600.0Sales120.0192.0480.0 640.0 720.0 780.0 5820.0Less: Cost of48.076.8115.2 168.0 192.0200.0240.0 240.0 192.0 256.0 288.0 312.0 2328.0goods soldGross margin72.0115.2172.8252.0288.0300.0360.0360.0288.0 384.0432.0468.03492.0OperatingexpensesSalaries75.075.075.075.075.075.075.075.075.075.075.075.0900.0Rent30.030.030.030.030.030.030.030.030.030.030.030.0360.0Utilities4.04.04.04.04.04.04.04.04.04.04.04.0480.0Sales15.015.015.015.015.015.015.015.015.015.015.015.0180.0expensesInsurance2.02.02.02.02.02.02.02.02.02.02.02.024.0Depreciation5.05.05.05.05.05.05.05.05.05.05.05.060.0Total operating131.0131.0131.0131.0131.0131.0131.0131.0 131.0 131.0131.0131.01572.0expensesNet profit (loss)(59.0)(15.8)41.8121.0157.0169.0229.0229.0157.0 253.0301.0337.01920.0o o

The income statements are projected to forecast the profit in future years on the basis of…

Assume that you are one of the owners of Pinoy Corporation. Upon reviewing the project income statements as shown in Tables 7.3 and 7.4 you realized that salaries are understated because it only accounts for the 12 months of salary of each employee and does not include the 13th month pay, which is required by law. You also feel that cost of goods sold ought to be computed at 45% instead of 40% of salles revenues. Using a spreadsheet program, revise the projected income statements for the first year and the first three years of the business.

Assume that you are one of the owners of Pinoy Corporation. Upon reviewing the project income statements as shown in Tables 7.3 and 7.4 you realized that salaries are understated because it only accounts for the 12 months of salary of each employee and does not include the 13th month pay, which is required by law. You also feel that cost of goods sold ought to be computed at 45% instead of 40% of salles revenues. Using a spreadsheet program, revise the projected income statements for the first year and the first three years of the business.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.1.1MBA

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