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Income Statement Forecast

Refer to Appendix A and lines 74–79. Produce a forecast Income Statement for the year ending 30 September 2019. Assume no other changes. (6 marks) Winter 2018 Paper 32

Year Ending 30 Sept 2019_________________Method

Revenue ______________88_______________ 80 × 1.1 1
Cost of sales __________10.5 _____________ 10 × 1.05
Gross profit____________77.5 _____________2 88 – 10.5
Expenses _____________55 ________________53 + 2
Operating profit _______22.5_____________ 3 77.5 – 55
Financial Expenses ______5
Profit before tax____ ___17.5 _____________4 22.5 – 5
Corporation tax @15% ___2.625 __________17.5 × 0.15
Profit for the year _______14.875 5 ________17.5 – 2.625
Dividends_______________ 5.95 ___________0.4 × 14.875
Retained earnings ________8.925__________ 14.875 –5.95