Read the following questions carefully and select the BEST answer from the options provided. Take a photograph of the solutions to questions 1, 2, and 3. I. Problem Solving. Make a projection of the company's net income considering the given information. Do not forget to write the given information before proceeding to the questions. Round the 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. Assume the following: 1. Sales revenues increased by 10% 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%. 2022 2023 2024 2025 Year 5 Gross Sales ₱ 1,988,500.00 Less: Cost of Sales 980,000.00 Gross Profit 1,008,500.00 Less: Operating Expenses 100,850.00 Net Income Before Tax 907,650.00 Income Tax Expenses 317,678.00 Net Income After Tax 589,972.00
Read the following questions carefully and select the BEST answer from the options provided. Take a photograph of the solutions to questions 1, 2, and 3. I. Problem Solving. Make a projection of the company's net income considering the given information. Do not forget to write the given information before proceeding to the questions. Round the 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. Assume the following: 1. Sales revenues increased by 10% 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%. 2022 2023 2024 2025 Year 5 Gross Sales ₱ 1,988,500.00 Less: Cost of Sales 980,000.00 Gross Profit 1,008,500.00 Less: Operating Expenses 100,850.00 Net Income Before Tax 907,650.00 Income Tax Expenses 317,678.00 Net Income After Tax 589,972.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Read the following questions carefully and select the BEST answer from the options provided. Take a photograph of the solutions to questions 1, 2, and 3.
I. Problem Solving.
Make a projection of the company's net income considering the given information. Do not forget to write the given information before proceeding to the questions. Round the 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.
Assume the following:
1. Sales revenues increased by 10% 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%.
| 2022 | 2023 | 2024 | 2025 | Year 5 | |
| Gross Sales | ₱ 1,988,500.00 | ||||
| Less: Cost of Sales | 980,000.00 | ||||
| Gross Profit | 1,008,500.00 | ||||
| Less: Operating Expenses | 100,850.00 | ||||
| Net Income Before Tax | 907,650.00 | ||||
| Income Tax Expenses | 317,678.00 | ||||
| Net Income After Tax | 589,972.00 |
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