You Are to Prepare a Projected Income Statement for a Proposed

Multiple Choice

You are to prepare a projected income statement for a proposed business venture. Your desired income is $28,000 and you have the following published statistics: Costs of goods sold = 56.9 percent of net sales
Operating expenses = 37.1 percent of net sales
Gross profit margin = 43.1 percent of net sales
This information indicates the net sales on your pro forma "P & L" (income statement) would be:

A) $466,667.
B) $491,228.
C) $500,000.
D) None of the above