Given the following information, forecast the taxes to be paid in 2019. 2018 Income Statement Amounts:...

Given the following information, forecast the taxes to be paid in 2019. 2018 Income Statement Amounts: Sales 30,000 COGS 13,650 Selling Expenses 3,000 Depreciation 2,250 Fixed Expenses 3,000 EBIT 8,100 Taxes (40%) 3,240 Net Income 4,860 Sales are forecast to grow to $37,500. COGS & Selling Expenses are expected to change at the same rate as sales. Depreciation and Fixed Expenses are expected to remain the same. The tax rate will remain at 40%.

Solutions

Expert Solution

Given,

Sales in 2019 = $ 37500

Sales in 2018 = $ 30000

Tax rate = 40%

Solution :-

jeff jeffy answered 3 weeks ago

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