You want to start your own retail furniture store, and you have already gathered a great...

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Finance

You want to start your own retail furniture store, and you havealready gathered a great deal of information on location, layout,form of ownership, business failure rates, etc. In applying for aloan, you notice that a projected income statement is required.Your problem is to complete this projected "P&L," given adesired income of $23,000 and the following published statistics.Cost of Goods Sold 60.3 percent of net sales Operating Expenses36.4 percent of net sales Gross Profit Margin 39.7 percent of netsales
1) If a market survey indicates that your firm's sales would be$620,000, what net profit would you expect to earn?
23,000 (I think)
2) How much should your firm’s sales be if you would like toachieve the desired income above?

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You want to start your own retail furniture store, and you havealready gathered a great deal of information on location, layout,form of ownership, business failure rates, etc. In applying for aloan, you notice that a projected income statement is required.Your problem is to complete this projected "P&L," given adesired income of $23,000 and the following published statistics.Cost of Goods Sold 60.3 percent of net sales Operating Expenses36.4 percent of net sales Gross Profit Margin 39.7 percent of netsales1) If a market survey indicates that your firm's sales would be$620,000, what net profit would you expect to earn?23,000 (I think)2) How much should your firm’s sales be if you would like toachieve the desired income above?