Forecasting
A) Dexter Company reported the
following 2018 income statement
Total revenue
$13,256,500
Cost of revenue
7,066,300
Gross profit
6,190,200
Selling and administrative expenses
3,758,200
Operating income
2,432,000
Interest expense
572,800
Income before income taxes
1,859,200
Income tax expense
687,905
Net income
$ 1,171,295
Forecast Dexter’s income statement assuming a 5% increase in
sales, a 17% effective tax rate, and a continuation of the 2018
percentage relation to net sales for expenses except for interest
where the company...