A Firm Has Sales of $685,000 and Cost of Goods

Multiple Choice

A firm has sales of $685,000 and cost of goods sold of $435,000.The firm expects sales to increase by 6 percent 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) $335,000
D) $355,100
E) $536,100