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
$27,800,000; current year's cost of goods sold is $17,528,000; sales are expected to rise by 30%. The
firm's investment in inventory in the current year is $5,890,200. What is the projection for next
year's inventory?
A) $5,845,500 B) $7,657,260 C) $4,526,600 D) $6,981,250
B
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Hawkeye Corporation has acquired a property that included both land and a building for $570,000
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