Question

Lead! Inc. offers executive coaching services to small business owners. Lead!'s operating profits average 24 percent of revenues and its marketing and administrative costs average 25 percent of the cost of services sold.

Required:

Lead! Inc. expects revenues to be $210,000 for April. Prepare an income statement for April for Lead! Inc. assuming its expectations are met.

LEAD!, INC.

Income Statement

For the Month Ended April 30

Answer 1

LEAD!, INC.

Income Statement

For the Month Ended April 30

Particulars	Total Cost in $	Total Amount in $
Revenues	-	$2,10,000
Less- manufacturing Cost (Total cost-Mark. & Adm. Cost)3	1,19,700	1,19,700
Gross Profit4	-	90,300
Less- Marketing and administrative costs (25 percent of the cost of services sold)2	39,900	39,900
Cost of services sold (Revenue-Operating profit)1	$1,59,600	-
Operating Profit ( 24 percent of revenues)	-	$50,400

No. 1 to 4 are steps of calculations in chronological order.

Thanks & all the best......