Your Company Has Pretax Income of $52,000 on Sales of $506,000.Sales

question 79

Multiple Choice

Your company has pretax income of $52,000 on sales of $506,000.Sales are expected to increase by 6 percent next year and the tax rate is 40 percent.What is the expected net income for next year if your firm uses the percentage of sales approach when compiling pro forma statements?

• A) $28,938
• B) $31,835
• C) $33,072
• D) $35,582
• E) $44,520

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Definitions:

Decisive Action

A firm, resolute action taken to solve a problem or achieve a goal, often characterized by its effectiveness in bringing about a significant change or resolving a critical situation.

Confederate Soldiers

Individuals who served in the military forces of the Confederate States of America during the American Civil War.

Union

An organization formed by workers in various sectors to protect their rights, negotiate wages, and improve working conditions.

Casualties

Individuals who are killed, wounded, or missing in action due to conflict, accidents, or disasters.