QUESTION. If the sales are forecasted to be $3,850,000 in 2021 for Andrew Group, which is financial consultancy company, the additional depreciation in 2021 will be $5,000 and the tax rate 35%. Required: Forecast the 2021 income statement below for Andrew Group by using the method of percentage of sales. Based on the method of percentage of sales analysis, prepare the income statement for 2021. You can use Excel (copy paste the final income statement of 2021 or manual calculation to find the solution. Income Statement for Andrew Group For the Year Ended Dec. 31, 2020 in S 2020 Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes Taxes Net Income 2019 4,660,000 4.230,000 3,250,000 2,864,000 1,410,000 1,366,000 330,300 240,000 110,000 110,000 23.000 19,500 946,700 65.000 881,700 309,645 $72,055 996,500 60,000 936,500 327,985 608,515
QUESTION. If the sales are forecasted to be $3,850,000 in 2021 for Andrew Group, which is financial consultancy company, the additional depreciation in 2021 will be $5,000 and the tax rate 35%. Required: Forecast the 2021 income statement below for Andrew Group by using the method of percentage of sales. Based on the method of percentage of sales analysis, prepare the income statement for 2021. You can use Excel (copy paste the final income statement of 2021 or manual calculation to find the solution. Income Statement for Andrew Group For the Year Ended Dec. 31, 2020 in S 2020 Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes Taxes Net Income 2019 4,660,000 4.230,000 3,250,000 2,864,000 1,410,000 1,366,000 330,300 240,000 110,000 110,000 23.000 19,500 946,700 65.000 881,700 309,645 $72,055 996,500 60,000 936,500 327,985 608,515
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION.
If the sales are forecasted to be $3,850,000 in 2021 for Andrew Group, which is financial
consultancy company, the additional depreciation in 2021 will be $5,000 and the tax rate 35%.
Required:
Forecast the 2021 income statement below for Andrew Group by using the method of percentage
of sales. Based on the method of percentage of sales analysis, prepare the income statement for
2021. You can use Excel (copy paste the final income statement of 2021 or manual calculation to
find the solution.
Income Statement for Andrew Group
For the Year Ended Dec. 31, 2020 in S
2020
Sales
Cost of Goods Sold
Gross Profit
Selling and G&A Expenses
Fixed Expenses
Depreciation Expense
EBIT
Interest Expense
Earnings Before Taxes
Taxes
Net Income
2019
4,660,000 4.230,000
3.250,000 2,864,000
1,410,000 1,366,000
330,300 240,000
110,000
110.000
23.000
19,500
946,700
996,500
65,000
60,000
881,700 936,500
309,645 327,985
572,055 608,515
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