How do I calculate the
Reduction in selling and administrative expenses?
Homework Answers
b)
|
TILDON COMPANY Pro forma Income statement |
|
| sales revenue | 1600000 |
| cost of goods sold [1120000(1-.02)] | 1097600 |
| Gross profit | 502400 |
| selling and administrative expense (Balancing figure ,502400-333500] | 168900 |
| Net income [290000(1+.15)] | 333500 |
| Reduction in selling and administrative expense | 21100 |
Reduction in selling and administrative expense =current selling and administrative expense- Projected selling and administrative expense
= 190000 -168900
= 21100
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How do I calculate the
Reduction in selling and administrative expenses?
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