A Firm Has Sales of $1,090,000 and Cost of Goods

Multiple Choice

A firm has sales of $1,090,000 and cost of goods sold of $739,000. The firm expects sales to increase by 5% next year. What is the gross profit amount expected to be next year if the firm uses the percentage of sales approach when compiling pro forma statements?

A) $235,100
B) $265,000
C) $333,450
D) $362,500
E) $368,550