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: Statement of comprehensive income can be presented as

A: Statement of Comprehensive Income can be defined as the statement that contains the summary of 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: How to complete income statements?

A: The income statement summarises a company's sales, costs, and profits or losses. This is one of…

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: mptions that need to be considered while preparing  a financial statement.

A: Financial statements are formal records of a company's, individual's, or other entity's financial…

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: advantages of taking amount (measurement bases)

A: Measurement bases are bases at which elements of financial statements are recognized.

Q: Explain the what is statement of comprehensive income. Discuss the accounts contained in statement…

A: Comprehensive income includes unrealized profits or losses on hedge/derivative financial…

Q: What information do we get from the income statement?

A: Income statement is a financial statement which is prepared on periodical basis along with Balance…

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: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Define the term financial ratio.

A: Financial ratio: The financial ratio is used to determine the performance of the business by…

Q: What differentiates things reported on the income statement from those reported on the balance sheet…

A: The Answer

Q: Define Income before taxes.

A:

Q: Why is the income statement called a dynamic financial statement?

A: Income statement is that financial statement that shows the different income as well as expenditures…

Q: Show the income statement equation and define eachelement.

A:

Q: laborate the uses of financial statement analysis.

A: Financial statements: The written records that describe the activities of the business and the…

Q: describe, calculate, and interpret comprehensive income;

A: The income statement is considered an important financial statement as it helps in order to get the…

Q: Define the term financing activities.

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