Question

A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000; depreciation is $51,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Input all amounts as positive values.) 

 Sales 

Variable costs 

Fixed costs 

Depreciation 

EBT 

Taxes 

Net income

Answer 1

	SALES	585000
LESS	VARIABLE COST	257400	(585000 * 44%)
LESS	FIXED COST	187000
LESS	DEPRECIATION	51000
	EBT	89600
LESS	TAX	18816	(89600 * 21%)
	NET INCOME	70784