Allen Products, Inc wants to do a scenario analysis for the upcoming year. The pessimistic prediction for sales is $904,000; the most likely amount of sales is $1,120,000; and the optimistic prediction is $1,282,000. Allen's income statement for the most recent year is show.
Allen Products, Inc. Income Statement for the Year Ended December 31, 2015
Sales revenuse $936,700
Less: cost of good sold $420,578
Gross profits $516,122
Less: operating expenses $192,024
Operating profist $324,098
Less: interest expense 31,848
Net profit before taxes $292,250
Less: taxes (rate 30%) 87,675
Net profits after taxes $204,575