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    Income Statement for the year 2005 for BETSEN BOUTIQUE

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    You are given the following table of data for your client, Betsen Boutique.
    Set up a simple Income Statement, including common size columns.
    Next, use the Percent of Sales method to forecast results for 2005.
    Sales are projected to be $165,000 in 2005.
    (Note, not all info below is required for the Income Statement)

    Item 2004 2003

    Accounts Payable $12,000 $10,700
    Accounts Receivable $54,400 $55,300
    Accumulated Depreciation $30,200 $27,900
    Cash & Equivalents $10,500 $9,700
    Common Stock $40,500 $40,500
    Cost of Goods Sold $108,400 $92,600
    Depreciation $2,300 $2,250
    Fixed Expenses $7,600 $7,000
    Interest $3,400 $2,900
    Inventory $42,700 $37,800
    Long-term Debt $32,000 $29,800
    Other Current Liabilities $8,400 $8,600
    Plant & Equipment $56,900 $53,000
    Retained Earnings $22,700 $18,200
    Sales $150,500 $138,200
    Selling, G & A $15,500 $13,400
    Short Term Notes $18,700 $20,100
    Tax Rate 30% 30%

    BETSEN BOUTIQUE
    INCOME STATEMENT
    And Forecast for 2005

    2005* %* 2004 % 2003 %

    Sales $165,000
    Cost of Goods Sold
    Gross Profit
    Selling, G & A
    Fixed Expenses
    Depreciation
    EBIT
    Interest
    Earnings before taxes
    Taxes
    Net Income

    *Projected

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    https://brainmass.com/business/income-statement/income-statement-for-the-year-2005-for-betsen-boutique-123462

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    Solution Preview

    You are given the following table of data for your client, Betsen Boutique.
    Set up a simple Income Statement, including common size columns.
    Next, use the Percent of Sales method to forecast results for 2005.
    Sales are projected to be $165,000 in 2005.
    (Note, not all info below is required for the Income Statement)

    Item 2004 2003 Increase in %

    Accounts Payable $12,000 $10,700
    Accounts Receivable $54,400 $55,300
    Accumulated Depreciation $30,200 $27,900
    Cash & Equivalents $10,500 $9,700
    Common ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to prepare the income statement for Betsen Boutique.

    $2.19

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