Fill in the blank cells of the projected income statement .

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

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Answer 5

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

Answer 6

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.

Answer 7

Chapter 1, Problem 52P

To determine

Fill in the blank cells of the projected income statement.

Answer 8

Expert Solution & Answer

Explanation of Solution

Projected income statement: The projected income statement represents the future financial position of the entity. The projected income statement is prepared with an objective of showing the financial results for a future period of time.

Fill in the blank cells of the projected income statement:

Company D
Projected Income Statement
For One Year
	Status Quo:	% Increase	Alternative
	Single Product	(Decrease)	Two Products	Difference
Sales revenue	$375,000 (a)	20% (b)	$450,000	$75,000 (c)
Costs
Equipment lease	$100,000	10%	$110,000	$10,000
Labor	72,000 (d)	30% (e)	$93,600	$21,600 (f)
Rent	12,500 (g)	20%	$15,000	$2,500 (h)
Depreciation	$20,000	5%	$21,000 (i)	$1,000 (j)
Utilities	$55,000	(k)	l	(m)
Other	$20,000	(n)	o	(p)
Total costs	$279,500(q)		$330,600 (r)	$51,100 (s)
Operating profit	$95,500		$119,400 (t)	$23,900

Table (1)

Working note 1:

Compute the value of (a):

Sales revenue ofcurrent service (a)} =Total costs (q)+operating profit=$279,500+$95,500= $375,000

Working note 2:

Compute the value of (b):

Sales revenue % ofenchante services(b)} =(Sales revenue of enhanced servicesSales revenue of current services)−1= ($450,000 375,000)−1=1.2−1=0.2 or 20%

Working note 3:

Compute the value of (c):

Sales revenuedifference(c) }=[(Sales revenue ofenhanced services)−(Sales revenue ofcurrent services)]= ($450,000−375,000)=$75,000

Working note 4:

Compute the value of (d):

Labor costs ofcurrent service(d)}=( Labor costs of enhanced−Difference in Labor costs)=$93,600−$21,600=$72,000

Working note 5:

Compute the value of (e):

Labor %(d) =( Labor costs of enhancedLabor costs of current)−1=($93,600$72,000)−1=1.30−1=0.30 or 30%

Working note 5:

Compute the value of (f):

$21,600 is given in the problem.

Working note 6:

Compute the value of (g):

Rent of currentservice(g)} =Rent of enhanced100+20%=$15,0001.2= $12,500

Working note 6:

Compute the value of (h):

Rent %(h) =Rent of enhanced−Rent of current service100+20%=$15,000−$12,500= $2,500

Working note 7:

Compute the value of (i):

Depreciation of enhanced(i) =[Depreciation of current×(100%+5% )]=$20,000 ×1.05= $21,000

Working note 8:

Compute the value of (j):

Depreciation % =[Depreciation of current−Depreciation of enhanced]=$21,000 − $21,000= $1,000

Working note 9:

Compute the value of (k-p):

The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000 ($330,600–$110,000–$93,600–$15,000–$21,000), however it cannot be separated into the two components. Likewise, the increase or decrease and difference between the two alternatives can be determined without the value of enhanced service.