Question

Pharoah Corporation’s financial statements for the fiscal year just ended are shown below:

Cattail Corporation Financial Statements for Fiscal Year Just Ended ($ thousands)
Income Statement				Balance Sheet
Net sales		$1,300		Assets		$700		Debt		$570
Costs		350						Equity		$130
Net income		$950		Total		$700		Total		$700

Pharoah management expects sales to increase by 12 percent next year. Assume that the financial statement accounts vary directly with changes in sales and that management has no financing plan at this time. Given this information, develop a pro forma income statement for Pharoah for the next fiscal year. (Enter amounts in thousands.)

Pharoah Corporation Pro Forma Income Statement ($ thousands)
select an income statement item                                                          Net salesCostsNet incomeDirect wagesDirect materials		$enter an amount in thousands of dollars
select an income statement item                                                          Direct wagesDirect materialsNet incomeNet salesCosts		enter an amount in thousands of dollars
select a closing name for this statement                                                          Net incomeNet salesDirect materialsDirect wagesCosts		$enter a total amount for this statement

Answer 1

Pharoah Corporation Pro Forma Income Statement ($ thousands) Net sales ($1,300 * 1.12) 1,456 Costs ($350 * 1.12) 392 Net income 1,064