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    Use the Percentage Sales method and a 20% increase in sales to forecast Apples' Consolidated Statement of Operations for the period September 26, 1999 through September 25, 2000. Assume a 15% tax rate and restructuring costs of 1% of the new sales figure.

    Consolidated Statements of Operations For the period September 26, 1998 through September 25, 1999

    Sales $6,134
    Cost of Sales 4,438
    Gross Margin 1,696
    Operating expenses:
    R & D 314
    Selling, General, and Administrative 996
    In-process R & D ---------
    Restructuring costs ---------
    Total Operating Exp $1,310
    Operating income $ 386
    Total interest and other Income net 317
    Income before provision for Income taxes 703
    Provision for income Taxes (15%) 105.4
    Net income $ 597.6

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    Percentage Sales method and a 20% increase in sales is used to forecast Apples' Consolidated Statement of Operations.

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