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Income Statement for the year 2005 for BETSEN BOUTIQUE

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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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