i need help filling in the yellow blocks thank you B4 12-31 Year 3 High-End Lift
ID: 2328247 • Letter: I
Question
i need help filling in the yellow blocks
thank you
B4 12-31 Year 3 High-End Lifts, Inc. Projected Income Statement 12-31 Year 3 Directions: COMPLETE ALL YELLOW CELLS Sales Assumptions: 25 units x $275,000each. | COGS: Before, 70% of sales; After 50% of sales. Cell E7-E61.5 Outsourcin % Manufacturing % Sales Revenue Cost of Goods Sold Gross Margin SG&A Expenses Advertising Expense Sales Commissions Salaries & Wages Expense Depreciation Expense Insurance Expense Rent Expense Utilities Expense Total SG&A Expenses Operating Income (EBIT) Other Income & Expenses Interest Expense Earnings Before Taxes (EBT) Income Tax Expense, 25% Net Income 6,875,000 100.0% 4,812,500 70.0% 2,062,500 30.0% #DIV/0! ,#DIV/01 #DIV/0! 1 Gross margin averaged 30% before conversion to full production (see IS tab). Gross margin is projected to increase to 50% under mar 687,500 10.0% 343,750 5.0% 481,250 7.0% 23,900 0.3% 25,000 0.4% 24,000 0.3% 14,500 0.2% 1,599,900 23.3% 462,600 6.7% #ONro, 1 full production. This is primarily due to the fact that they are no #DIV/0! longer outsourcing the purchase of inventory (covering the profit #DIV/0! margin of their suppliers). #DIV/0! #DIV/0! SG&A Expenses: all items are the same dollar amounts as #DIV/0! Outsourcing. Copy by entering in cell E10 the formula:-C10 and #DIV/0! follow the same pattern to the bottom of the SG&A section. #DIV/0! #DIV/0! Interest Expense is the same dollar amount as outsourcing 3 49,834 0.7% 412,766 6.0% 103,192 1.5% 309,575 4.5% #DIV/0! Income tax expense is 25% of EBT . 2 IE O Type here to search eExplanation / Answer
High-End Lifts, Inc
Projected Income Statement
12-31 Year 3
Outsourcing
%
Manufacturing
%
Sales Revenue
$ 6,875,000
100.0%
$ 6,875,000
100.0%
Cost of Goods sold
$ 4,812,500
70.0%
$ 3,437,500
50.0%
Gross margin
$ 2,062,500
30.0%
$ 3,437,500
50.0%
SG&A
Advertising Expense
$ 687,500
10.0%
$ 687,500
10.0%
Sales Commission
$ 343,750
5.0%
$ 343,750
5.0%
Salaries and wages expense
$ 481,250
7.0%
$ 481,250
7.0%
Depreciation expense
$ 23,900
0.3%
$ 23,900
0.3%
Insurance Expense
$ 25,000
0.4%
$ 25,000
0.4%
Rent Expense
$ 24,000
0.3%
$ 24,000
0.3%
Utilities Expense
$ 14,500
0.2%
$ 14,500
0.2%
Total SG&A
$ 1,599,900
23.3%
$ 1,599,900
23.3%
Operating Income (EBIT)
$ 462,600
6.7%
$ 1,837,600
26.7%
Other income and Expense
Interest Expense
$ 49,834
0.7%
$ 49,834
0.7%
Earnings before taxes (EBT)
$ 412,766
6.0%
$ 1,787,766
26.0%
Income tax expense 25%
$ 103,192
1.5%
$ 446,942
6.5%
Net Income
$ 309,575
4.5%
$ 1,340,825
19.5%
High-End Lifts, Inc
Projected Income Statement
12-31 Year 3
Outsourcing
%
Manufacturing
%
Sales Revenue
$ 6,875,000
100.0%
$ 6,875,000
100.0%
Cost of Goods sold
$ 4,812,500
70.0%
$ 3,437,500
50.0%
Gross margin
$ 2,062,500
30.0%
$ 3,437,500
50.0%
SG&A
Advertising Expense
$ 687,500
10.0%
$ 687,500
10.0%
Sales Commission
$ 343,750
5.0%
$ 343,750
5.0%
Salaries and wages expense
$ 481,250
7.0%
$ 481,250
7.0%
Depreciation expense
$ 23,900
0.3%
$ 23,900
0.3%
Insurance Expense
$ 25,000
0.4%
$ 25,000
0.4%
Rent Expense
$ 24,000
0.3%
$ 24,000
0.3%
Utilities Expense
$ 14,500
0.2%
$ 14,500
0.2%
Total SG&A
$ 1,599,900
23.3%
$ 1,599,900
23.3%
Operating Income (EBIT)
$ 462,600
6.7%
$ 1,837,600
26.7%
Other income and Expense
Interest Expense
$ 49,834
0.7%
$ 49,834
0.7%
Earnings before taxes (EBT)
$ 412,766
6.0%
$ 1,787,766
26.0%
Income tax expense 25%
$ 103,192
1.5%
$ 446,942
6.5%
Net Income
$ 309,575
4.5%
$ 1,340,825
19.5%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.