Use the following (very simplified) numbers in creating your pro-forma income statement:Sales start at $1000 for January and increase by 10% per month (so, February sales will be $1100, March sales will be $1210, etc.).The venture uses a markup of 100%, so the cost of goods is 50% of the sales amount (so, January cost of goods is $500, Februarycost of goods is $550, etc.).The venture pays a salary of $500/month for the first 6 months, then hires an additional employee in July and pays $1000/month forthe rest of the year.The venture pays a total overhead cost (including rent, utilities, and insurance) of $50/month.Payroll taxes start out at $20/month for January-June, then increase to $40/month for July-December.The venture's assets depreciate by $10/month.Office expenses are $15/month for January-April, increase to $25/month for May-August, and go back down to $15/month forSeptember-December

Answered: Use the following (very simplified)…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...

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