Percentage of sales income statement. Using the percentage of sales method forecast the income statement of the company using the following data and forecasts:
Sales last year= $3,000,000
Variable expenses:
cost of goods sold= $1,200,000
Operating expenses=$960,000
Fixed operating expense = $200,000
Interest bearing debt:
Average balance next year=$1,000,000
Average interest rate net year 12%
Tax rate 35%
This problem must also factor in the company's sales forecast for next year is:
a. $ 3,400,000
b. $ 3,900,000
c. $ 4,200,000
d. $ 4,500,000
Please assist with obtaining the answers