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b. Prepare an income statement forecast for the fiscal year 2015 (ending January 30, 2016), based on the following assumptions: • Net sales total $15,000 million. • Cost of goods sold and occupancy expenses are 64% of sales. • Operating expenses total 26% of sales. • Interest income and interest expense are unchanged from the 2014 amounts. • The Gap's effective tax rate is 39%. Round answers to the nearest dollar. Use rounded answers for subsequent calculations. Use a negative sign with your interest income answer only. The Gap, Inc. Proforma Income Statement Jan. 30, 2016 Net sales Cost of goods sold & occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net earnings 24

b. Prepare an income statement forecast for the fiscal year 2015 (ending January 30, 2016), based on the following assumptions: • Net sales total $15,000 million. • Cost of goods sold and occupancy expenses are 64% of sales. • Operating expenses total 26% of sales. • Interest income and interest expense are unchanged from the 2014 amounts. • The Gap's effective tax rate is 39%. Round answers to the nearest dollar. Use rounded answers for subsequent calculations. Use a negative sign with your interest income answer only. The Gap, Inc. Proforma Income Statement Jan. 30, 2016 Net sales Cost of goods sold & occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net earnings 24

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 20Q: What is the difference between a multi-step and simple income statement?
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b. Prepare an income statement forecast for the fiscal year 2015 (ending January 30, 2016), based on the following assumptions: • Net sales total $15,000 million. • Cost of goods sold and occupancy expenses are 64% of sales. • Operating expenses total 26% of sales. • Interest income and interest expense are unchanged from the 2014 amounts. • The Gap's effective tax rate is 39%. Round answers to the nearest dollar. Use rounded answers for subsequent calculations. Use a negative sign with your interest income answer only. The Gap, Inc. Proforma Income Statement Jan. 30, 2016 Net sales Cost of goods sold & occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net earnings 24
Transcribed Image Text:b. Prepare an income statement forecast for the fiscal year 2015 (ending January 30, 2016), based on the following assumptions: • Net sales total $15,000 million. • Cost of goods sold and occupancy expenses are 64% of sales. • Operating expenses total 26% of sales. • Interest income and interest expense are unchanged from the 2014 amounts. • The Gap's effective tax rate is 39%. Round answers to the nearest dollar. Use rounded answers for subsequent calculations. Use a negative sign with your interest income answer only. The Gap, Inc. Proforma Income Statement Jan. 30, 2016 Net sales Cost of goods sold & occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net earnings 24
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