Question:
Consider Apple’s Consolidated Statement of Operations for the year ended September 25, 1999 as shown below and answer the following question:
Use the Percentage Sales Method and a 20% increase in sales to forecast Apples' Consolidated Statement of Operations for the period September 26, 1999 through September 25, 2000. Assume a 15% tax rate.
Consolidated Statements of Operations For the period September 26, 1998 through September 25, 1999
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Sales
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$6,134
|
|
Cost of Sales
|
4,438
|
|
Gross Margin
|
1,696
|
|
Operating expenses:
|
|
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R & D
|
314
|
|
Selling, General, and Administrative
|
996
|
|
In-process R & D
|
---------
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Restructuring costs
|
---------
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Total Operating Exp
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$1,310
|
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Operating income
|
$ 386
|
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Total interest and other Income net
|
317
|
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Income before provision for Income taxes
|
703
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Provision for income Taxes (15%)
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105.4
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Net income
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$ 597.6
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