TABLE 6–7 Pro Forma Income Statement Income Statements for Time Periods Indicated Actual Sales for 2012 Pro Forma Sales for 2013 Sales COG Gross Profit $200,000 100,000 $100,000 $250,000 $125,000 $125,000 Operating Expenses Rent 24,000 3,000 60,000 2,400 5,000 4,500 $ 98,900 $ 1,100 5,000 $ (3,900) 24,000 3,600 63,000 3,000 7,000 7,800 $108,400 $ 16,600 6,800 $ 9,800 Utilities Salaries Insurance Depreciation Equipment Totai Operating Expenses Operating Profit Interest Expense Net Profit

Q: What is the purpose of financial statement analysis?

A: Financial statements are written records that convey the information on the financial performance,…

Q: How do you make a horizontal analysis on an income statement and balance sheet?

A: Horizontal analysis of financial statements: In horizontal analysis of financial statement, the…

Q: hat about an income statement and a CVP Income statement?

A: An income statement is a form of computation of net income after deducting expenses from revenue.…

Q: Define financial data.

A: Financial Data means the unaudited salary explanations identifying with activity of the property for…

Q: Describe the accounting applications of present value techniques.

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: What data points are necessary for developing an accurate financial statement? Define the terms

A: Financial statements are formal records of a company's financial activities and performance over a…

Q: What is the income statement formula?

A: Introduction: Income statement: All revenues and expenses are recorded in Income statement. it tells…

Q: Describe the approach to financial statement analysis

A: Financial statement analysis: Financial statement analysis is a valuable measure for evaluating…

Q: how to calculate and interpret basic financial statement ratios?

A: The question is based on the concept of Financial Accounting. Financial ratios are a mathematical…

Q: Define the term financial statements?

A: Financial Statements: When the accounting period ends, there is a need to report and communicate the…

Q: List and explain the objectives of Financial Reporting.

A: Financial reporting is providing detailed financial information to all relevant parties on the…

Q: Define Income before taxes.

A:

Q: Define the term financing activities.

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…