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Question
Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's cost of goods sold. Make the following assumptions: current year's sales are $27,800,000; current year's cost of goods sold is $17,528,000; sales are expected to rise by 30%. What is the projection for next year's cost of goods sold?A) $20,481,000
B) $21,138,900
C) $21,459,200
D) $22,786,400
Answer
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