The CEO of PDL Corporation would like to see a five-year (2023-2027) cumulative net income projection. Consider the following information from 2022 as the basis. Sales - 1,988,500; Cost of sales - 980,000; Gross profit- 1,008,500; Operating expenses- 100,850; Net income before tax- 907,650; Income tax - 317,678; Net income after tax - 589,972. Assume the following: 1. Sales revenues increased by 10% in each year. 2. Cost of sales increased by 12% each year. 3. Operating expenses increased by 11% each year. 4. Income tax rate is 35%. How much are the forecasted sales, costs of sale, gross profit, operating expenses, net income before tax, income tax, and net income after tax for the year 2023 based on the given information? Round your answer to the nearest whole number.
The CEO of PDL Corporation would like to see a five-year (2023-2027) cumulative net income projection. Consider the following information from 2022 as the basis. Sales - 1,988,500; Cost of sales - 980,000; Gross profit- 1,008,500; Operating expenses- 100,850; Net income before tax- 907,650; Income tax - 317,678; Net income after tax - 589,972. Assume the following: 1. Sales revenues increased by 10% in each year. 2. Cost of sales increased by 12% each year. 3. Operating expenses increased by 11% each year. 4. Income tax rate is 35%. How much are the forecasted sales, costs of sale, gross profit, operating expenses, net income before tax, income tax, and net income after tax for the year 2023 based on the given information? Round your answer to the nearest whole number.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 12P
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The CEO of PDL Corporation would like to see a five-year (2023-2027) cumulative net income projection. Consider the following information from 2022 as the basis.
Sales - 1,988,500; Cost of sales - 980,000; Gross profit- 1,008,500; Operating expenses- 100,850; Net income before tax- 907,650; Income tax - 317,678; Net income after tax - 589,972. Assume the following:
1. Sales revenues increased by 10% in each year.
2. Cost of sales increased by 12% each year.
3. Operating expenses increased by 11% each year.
4. Income tax rate is 35%.
How much are theforecasted sales, costs of sale, gross profit, operating expenses, net income before tax, income tax, and net income after tax for the
year 2023 based on the given information? Round your answer to the nearest whole number.
Sales - 1,988,500; Cost of sales - 980,000; Gross profit- 1,008,500; Operating expenses- 100,850; Net income before tax- 907,650; Income tax - 317,678; Net income after tax - 589,972. Assume the following:
1. Sales revenues increased by 10% in each year.
2. Cost of sales increased by 12% each year.
3. Operating expenses increased by 11% each year.
4. Income tax rate is 35%.
How much are the
year 2023 based on the given information? Round your answer to the nearest whole number.
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