PROBLEM: FINANCIAL PLANNING
Financial Forecasting - Use the percent of sales methods to prepare pro forma income statement for Calico Sales Co., Inc. projected sales for next year is P 4million. Cost of Goods sold is expected to be 70% of sales, administrative expense equals to P500,000.00 and depreciation expense is P 300,000. Interest expense equals P50,000 and income is taxed at a rate of 40%. The firm plans to spend P 200,00.00 during the period to renovate its office facility and will retire P 150,000 in notes payable. Finally Selling expense equals 5 percent of sales.