Homework SourseCharles llc has base sale of 100 and depreciation expense is
Charles llc has base sale of 100 and depreciation expense is 20% of sales. Assuming a 20% increase in sales, depreciation expense for the first pro forma year is?
A. 22
B. 24
C. 26
D. 28
Charles llc has base sale of 100 and depreciation expense is 20% of sales. Assuming a 20% increase in sales, depreciation expense for the first pro forma year is?
A. 22
B. 24
C. 26
D. 28
Solution
Answer:B. 24
increased Sales = 100 x120% = 120
Depreciation Expense for the first pro forma year is = 120 x 20% = 24
