Percent of sales method-pro forma financial statements

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Reference no: EM13932741

Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's inventory. Make the following assumptions: current year's sales are $24,500,000; current year's cost of goods sold is $15,925,000; sales are expected to rise by 25%. The firm's investment in inventory in the current year is $3,621,300. What is the projection for next year's inventory? a. $5,555,000, B.$6,125,000,C. $4,526,600 D. $3,981,250

Reference no: EM13932741

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