The income statements for Infonext Corporation for 2007 and 2008 are provided below:
-Refer to the information above. Assume that Infonext's depreciation expense in 2009 will be the same as it was in 2008 and that the remaining "total other operating expenses" are expected
To be 8.5% of sales. Assume, too, that sales growth will be the same as last year. Forecast the
2009 "total other operating expenses" for Infonext.

Question

The income statements for Infonext Corporation for 2007 and 2008 are provided below:  
-Refer to the information above. Assume that Infonext's depreciation expense in 2009 will be the same as it was in 2008 and that the remaining "total other operating expenses" are expected
To be 8.5% of sales. Assume, too, that sales growth will be the same as last year. Forecast the
2009 "total other operating expenses" for Infonext.

Quizplus · Accepted Answer

The correct answer is A. $2,857.Explanation:Total other operating expenses = 8.5% of sales= 8.5% * 1.10 * $24,000= 8.5% * $26,400= $2,244Total other operating expenses = Depreciation expense + Other operating expenses= $613 + $2,244= $2,857

The Income Statements for Infonext Corporation for 2007 and 2008