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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.81 times at the end of 2018. If the firm's total debt at year-end was $9.00 million, how much equity does Trina's Trikes have? A. $16.29 million B. $1.81 million C. $9.00 million D. $4.97 million
Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.81 times at the end of 2018. If the firm's total debt at year-end was $9.00 million, how much equity does Trina's Trikes have? A. $16.29 million B. $1.81 million C. $9.00 million D. $4.97 million
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You have gathered this information on JJ Enterprises: 2014 2015 Sales $6.318 $7,202 COGS 3,945 4.460 Interest 303 277 Depreciation 1,204 1,196 Cash 672 418 Accounts receivables 601 578 Current liabilities 414 463 Inventory 1,215 1.598 Long-term debt 4,780 4.103 Net fixed assets 7.700 7,330 Shareholder's equity 4.994 5.358 Taxes 217 317 What is the operating cash flow for 2015? Al $1,823 B) $1.229 C) $1,367 D) $2,425 E) $1,766
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