Gospel Company Income Statement For the year ended Dec. 31, 2018 P 2,500,000 Sales Cost of Sales (1,500,000) Gross profit 1,000,000 Operating expenses (380,000) Earnings before interest and taxes Interest expense Earnings before taxes Taxes (35%) (189,500) Net Income/Earnings after taxes 620,000 80,000 540,000 P. 350,500 Dividends 140,200 Additional Information: 1. The firm is expecting a 25% increase in sales next year. 2. The company expecting to declare 30% of dividend Required: 1. Prepare the projected income statement of Gospel Company. 2. How much is the net income? 3. How much is the dividend?
Gospel Company Income Statement For the year ended Dec. 31, 2018 P 2,500,000 Sales Cost of Sales (1,500,000) Gross profit 1,000,000 Operating expenses (380,000) Earnings before interest and taxes Interest expense Earnings before taxes Taxes (35%) (189,500) Net Income/Earnings after taxes 620,000 80,000 540,000 P. 350,500 Dividends 140,200 Additional Information: 1. The firm is expecting a 25% increase in sales next year. 2. The company expecting to declare 30% of dividend Required: 1. Prepare the projected income statement of Gospel Company. 2. How much is the net income? 3. How much is the dividend?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 7E: Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December...
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Transcribed Image Text:Gospel Company
Income Statement
For the year ended Dec. 31, 2018
Sales
P 2,500,000
Cost of Sales
(1,500,000)
Gross profit
1,000,000
Operating expenses
(380,000)
Earnings before interest and taxes
Interest expense
Earnings before taxes
Тахes (35%)
(189,500)
Net Income/Earnings after taxes
620,000
80,000
540,000
P.
350,500
Dividends
P
140,200
Additional Information:
1. The firm is expecting a 25% increase in sales next year.
2. The company expecting to declare 30% of dividend
Required:
1. Prepare the projected income statement of Gospel Company.
2. How much is the net income?
3. How much is the dividend?
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