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

question 1

Multiple Choice

Table 4.4
Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31,2019,for Hennesaw Lumber,Inc.
Hennesaw Lumber,Inc.estimates that its sales in 2019 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 2019.Hennesaw Lumber,Inc.'s income statement for the year ended December 31,2018 is shown below.From your preparation of the pro forma income statement,answer the following multiple choice questions.
-The pro forma net profits after taxes for 2019 are ________.(See Table 4.4)

• A)$272,550
• B)$207,000
• C)$122,550
• D)$57,000

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Definitions:

Memory Loss

A condition where a person experiences an inability to remember information, events, or experiences, often caused by brain injury, disease, or psychological trauma.

Dissociative Identity Disorder

A psychological condition where a person exhibits two or more distinct and alternating personalities.

Multiple Personality Disorder

Now known as Dissociative Identity Disorder, it is a mental condition characterized by the presence of two or more distinct personality states.

Split Personality

An outdated term, often incorrectly used to describe Dissociative Identity Disorder, which involves the presence of two or more distinct personality states.