Table 4.4 Use the Percent-Of-Sales Method to Prepare a Pro Forma Income

question 68

Multiple Choice

Table 4.4
Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2015, for Hennesaw Lumber, Inc.
Hennesaw Lumber, Inc. estimates that its sales in 2000 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2015. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2014 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.
-The pro forma accumulated retained earnings account on the balance sheet is projected to be ________. (See Table 4.4)

• A) $62,500
• B) $52,500
• C) $57,000
• D) $67,000

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Definitions:

Implicit Memory

A type of long-term memory that operates without conscious awareness, influencing thoughts and behaviors.

Long-Term Memory

Long-term memory refers to the storage of information over an extended period, ranging from hours to a lifetime, and is critical for learning, decision-making, and identity.

Nondeclarative Memories

A type of long-term memory that includes skills and experiences that are performed automatically without conscious recall, such as procedural memory.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.