Solution-Construct a pro forma income statement for the

Construct a pro forma income statement for the first year

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Reference no: EM13849452

Question:

Construct a pro forma income statement for the first year and second year for the following assumptions:

Units of Sales in Year 1: 110,000 .

Price per Unit: $11 .

Variable cost per unit: 30% .

Fixed Costs: $125,000 .

Income taxes: 15% .

Interest Expense: $200,000 .

In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same.

Reference no: EM13849452

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Construct a pro forma income statement for the first year

Reference no: EM13849452

Reference no: EM13849452

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