Module 9: financial section

Operating income is sometimes also called

EBIT

Another term for earnings is profits.

true

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

interest expense

In preparing projected statements, to project the cost of goods sold in the income statement, which of these methods is recommended?

 

Common Size Method using percentage-of-sales

Dividends and taxes cannot be forecasted using the percentage-of-sales method.

true

A projected financial analysis can be used to forecast the impact of various implementation decisions.

true

All items on the income statement can be forecasted using the percentage-of-sales method.

false

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales (common size) method?

taxable income

In preparing projected income statements, which method is recommended for forecasting taxable income?

using a percentage of sales (common size method)