Chapter 28 Review (Forecasting and Income Statement

Which of the following are potential revenue streams for a popular web series airing on YouTube?

• advertising

• syndication

• sponsorship

• all of the above

The sales forecasting technique in which you predict selling as many products as you can is called

• target selling

• order projecting

• market share

• full capacity

Which of the following is not helpful in sales forecasting?

• researching industry standards

• estimating market share

• observing the competition

• developing a savings plan

If you expect to serve 1,000 customers next year who make an average of 2 purchases each for an average amount of $35, your sales forecast will be

• $35,000

• $70,000

• $1,000

• $60,000

An income statement is also called a

• balance sheet

• cash flow statement

• profit and loss statement

• sale forecast

On an income statement, gross profit is calculated by

• subtracting the cost of goods sold from the net sales

• subtracting the cost of goods sold from the operating expenses

• adding the cost of goods sold to the pre-tax profit

• adding the cost of goods sold to the total revenue

An income statement does not show

• profits

• expenses

• cash on hand

• taxes

If your pre-tax profit is $4,250 and your tax rate is 25%, your net profit is

• $2,500.00

• $3,528.00

• $3,187.50

• $4,000.00

If you pay yourself monthly a salary to run your business, that salary is entered on the income statement as

• net profit

• pre-tax profit

• fixed expense

• variable expense

Sara is a wedding makeup artist who worked 16 weddings last month for $250 each. Her COSS is $120 so her gross profit last month was

• $2,500

• $2,080

• $3,460

• $1,600