Income statement for the year-betsen boutique

Question

Problem:

You are given the following table of data for your client, Betsen Boutique.

Set up a simple Income Statement, including common size columns.

Next, use the Percent of Sales method to forecast results for 2005.

Sales are projected to be $165,000 in 2005.

(Note, not all info below is required for the Income Statement)   

Item					2004		2003
Accounts Payable					$12,000		$10,700
Accounts Receivable					$54,400		$55,300
Accumulated Depreciation					$30,200		$27,900
Cash & Equivalents					$10,500		$9,700
Common Stock					$40,500		$40,500
Cost of Goods Sold					$108,400		$92,600
Depreciation					$2,300		$2,250
Fixed Expenses					$7,600		$7,000
Interest					$3,400		$2,900
Inventory					$42,700		$37,800
Long-term Debt					$32,000		$29,800
Other Current Liabilities					$8,400		$8,600
Plant & Equipment					$56,900		$53,000
Retained Earnings					$22,700		$18,200
Sales					$150,500		$138,200
Selling, G & A					$15,500		$13,400
Short Term Notes					$18,700		$20,100
Tax Rate					30%		30%

 

			BETSEN BOUTIQUE
			INCOME STATEMENT
			And Forecast for 2005
			2005*	%*	2004	%	2003	%
Sales			$165,000
Cost of Goods Sold
Gross Profit
Selling, G & A
Fixed Expenses
Depreciation
EBIT
Interest
Earnings before taxes
Taxes
Net Income
*Projected