Last Year, a Firm Had Net Income of $508,000 on Sales

question 60

Multiple Choice

Last year, a firm had net income of $508,000 on sales of $1,250,000. The projected sales for next year are $1,450,000. Assume the firm uses the percentage of sales method for pro forma statements. What is the projected net income?

• A)$589,280
• B)$599,390
• C)$639,200
• D)$650,500
• E)$701,900

---

Definitions:

Reticular Formation

A complex network of nerve pathways within the brainstem, involved in controlling alertness and consciousness.

Brainstem

A region at the base of the brain that controls vital functions like breathing, heart rate, and blood pressure.

Amygdala

Two lima-bean–sized neural clusters in the limbic system; linked to emotion.

Reward Centers

Areas in the brain, particularly within the limbic system, that are responsible for the sensation of pleasure in response to certain stimuli, playing a crucial role in motivation and reward-based learning.