Income Statement Huddleston Manufacturing Company For the Year Ended December 31, 2012 Sales $2,800,000 Less: Cost of goods sold 1,820,000 Gross profits $ 980,000 Less: Operating expenses 240,000 Operating Profits $ 740,000 Less: Interest expense 70,000 Net...

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Finance

Income Statement
Huddleston Manufacturing Company
For the Year Ended December 31, 2012
Sales                                                                $2,800,000
Less: Cost of goodssold                                    1,820,000
Grossprofits                                                     $   980,000
Less: Operatingexpenses                                       240,000
OperatingProfits                                               $   740,000
Less: Interestexpense                                              70,000
Net profits beforetaxes                                     $   670,000
Less: Taxes(40%)                                                  268,000
Net profits aftertaxes                                        $   402,000
Less: CashDividends                                             132,000
To: Retainedearnings                                       $   270,000
Huddleston Manufacturing estimates its sales in 2013 will be $3million.  Interest expense is expected to remainunchanged at $70,000, and the firm plans to pay cash dividends of$140,000 during 2013.  Cost of goods sold includes$200,000 in fixed costs, and operating expenses include $50,000 infixed costs.  Use the percent?of?sales method to preparea pro forma income statement for the year ended December 31, 2013,based on the 2012 income statement shown above.

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Income StatementHuddleston Manufacturing CompanyFor the Year Ended December 31, 2012Sales $2,800,000Less: Cost of goodssold 1,820,000Grossprofits $ 980,000Less: Operatingexpenses 240,000OperatingProfits $ 740,000Less: Interestexpense 70,000Net profits beforetaxes $ 670,000Less: Taxes(40%) 268,000Net profits aftertaxes $ 402,000Less: CashDividends 132,000To: Retainedearnings $ 270,000Huddleston Manufacturing estimates its sales in 2013 will be $3million. Interest expense is expected to remainunchanged at $70,000, and the firm plans to pay cash dividends of$140,000 during 2013. Cost of goods sold includes$200,000 in fixed costs, and operating expenses include $50,000 infixed costs. Use the percent?of?sales method to preparea pro forma income statement for the year ended December 31, 2013,based on the 2012 income statement shown above.