You Are to Prepare a Projected Income Statement for a Proposed

question 112

Multiple Choice

You are to prepare a projected income statement for a proposed business venture. Your desired income is $28,000 and you have the following published statistics: Costs of goods sold = 56.9 percent of net sales
Operating expenses = 37.1 percent of net sales
Gross profit margin = 43.1 percent of net sales
This information indicates the net sales on your pro forma "P & L" (income statement) would be:

• A) $466,667.
• B) $491,228.
• C) $500,000.
• D) None of the above

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Definitions:

Developing Economies

Economies characterized by low income, limited industrialization, and moderate to high population growth. These economies are in the process of experiencing significant structural changes and economic development.

Literacy Rates

The percentage of a population aged 15 and above that can read and write with understanding a short simple statement about their everyday life.

Free-Market Economies

Economic systems in which the prices for goods and services are determined by the open market and consumers, with minimal governmental intervention.

Property Rights

The legal rights to possess, use, and dispose of assets including real estate, personal property, and intellectual property.