Last Year,a Firm Had Net Income of $62,000 on Sales

question 62

Multiple Choice

Last year,a firm had net income of $62,000 on sales of $595,000.The projected sales for next year are $654,500.Assume the firm uses the percentage of sales method for pro forma statements.What is the projected net income?

• A) $59,500
• B) $65,500
• C) $68,200
• D) $71,500
• E) $71,900

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Definitions:

Scientific Method

a systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion to validate or refute a hypothesis.

Correlational

Pertaining to a statistical relationship between two variables, indicating how one may predict or relate to the other, without implying causation.

Experimental

Pertaining to a method of research that involves the manipulation of variables to determine cause and effect relationships.

Field Experimental

A research study conducted in natural settings outside the laboratory to investigate hypotheses under more realistic conditions.