Question

12.6

Pro forma income statement. Given the income statement in the popup window, € , for California Cement Company for 2013 and an expected sales growth rate of 7.42% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) California Cement Company Income Statement for 2013 Sales revenue $ 22,861,000 % $ -11,691,000 % $ -4,043,000 % Cost of goods sold Selling, general, and administrative expenses Depreciation expenses |EBIT $ -1,390,000 % $ 5,737,000 % Interest expense $ -172,000 % Taxable income $ 5,565,000 % Taxes GA -2,438,837 % Net income $ 3,126,163 % Data Table California Cement Company Income Statement for 2013 Sales revenue $ 22,861,000 $ -11,691,000 Cost of goods sold Selling, general, and administrative expenses Depreciation expenses $ -4,043,000 $ -1,390,000 EBIT $ 5,737,000 Interest expense $ -172,000 Taxable income $ 5,565,000 -2,438,837 Taxes $ Net income $ 3,126,163 Enter any number in

Answer 1

	2013	Percentage of Sales	2014
Sales Revenue	22,861,000	100%	24,557,286
COGS	11,691,000	51%	12,558,472
SG&A	4,043,000	18%	4,342,991
Depreciation	1,390,000	6%
EBIT	5,737,000	25%	6,162,685
Interest Expense	172,000	1%	184,762
Taxable Income	5,565,000	24%	5,977,923
Taxes	2,438,837	11%	2,619,799
Net Income	3,126,163	14%	3,358,124

Revenue of 2014 = Revenue of 2013*1.0742

2014 Line items = Line Item value in 2013* Percentage of Revenue in 2013