The income statements for Bullseye Corporation for fiscal years 2015, 2014, and 2013 follow:
Prepare a pro-forma income statement for 2016 for Bullseye assuming the following:
A. Total revenues are $142,000 million.
B. Cost of sales is 68% of net sales.
C. Selling, general and administrative expenses increase by 10% from 2015. Credit card expense increases by 12%.
D. Depreciation increases by 5%
E. There is no gain on receivables held for sale.
F. Interest costs remain the same.
G. The effective income tax rate is 35%.

Question

The income statements for Bullseye Corporation for fiscal years 2015, 2014, and 2013 follow:
  Prepare a pro-forma income statement for 2016 for Bullseye assuming the following:
A. Total revenues are $142,000 million.
B. Cost of sales is 68% of net sales.
C. Selling, general and administrative expenses increase by 10% from 2015. Credit card expense increases by 12%.
D. Depreciation increases by 5%
E. There is no gain on receivables held for sale.
F. Interest costs remain the same.
G. The effective income tax rate is 35%.

Quizplus · Accepted Answer

The Answer of The income statements for Bullseye Corporation for fiscal years 2015, 2014, and 2013 follow:
  Prepare a pro-forma income statement for 2016 for Bullseye assuming the following:
A. Total revenues are $142,000 million.
B. Cost of sales is 68% of net sales.
C. Selling, general and administrative expenses increase by 10% from 2015. Credit card expense increases by 12%.
D. Depreciation increases by 5%
E. There is no gain on receivables held for sale.
F. Interest costs remain the same.
G. The effective income tax rate is 35%.

The Income Statements for Bullseye Corporation for Fiscal Years 2015