(SOLVED) Your pro forma income statement shows sales of $1,008,000, cost of goods sold as $491,000, depreciation expense of $101,000, and taxes of $166,400 due to a tax rate of 40%.

Discipline: Finance

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 1-2)

Paper Format: APA

Pages: 1 Words: 30

Question

Your pro forma income statement shows sales of $1,008,000, cost of goods sold as $491,000, depreciation expense of $101,000, and taxes of $166,400 due to a tax rate of 40%.


What are your pro forma earnings? What is your pro forma free cash flow?


Complete the pro forma income statement below: (Round to the nearest dollar.)


Sales


Cost of Goods Sold ____


Gross Profit____


Depreciation_____


EBIT______


Taxes (40%)_______


Earnings _________