Question

The sales forecast for 2014 is------------------------

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 7.01% 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 22,845,000 Cost of goods sold $ -11,624,000 Selling, general, and administrative expenses $ -3,994,000 Depreciation expenses -1,358,000 EBIT 5,869,000 Interest expense -176,000 Taxable income 5,693,000 Taxes $ -2,494,932 Net income $ 3,198,068 CA % CA % CA % $ % % %

The pro forma income statement for 2014​ is.................

Answer 1

Formulas and Income statement for 2014 has been provided in the below table. please find it

For 2013, we have to find the percenatge to the sales of each line item and same percentage we should apply to 2014 Income statement

	Income statement 2013	Income statement 2014
Sales Revenue	22845000	100.00%	24446434.5	Increase of 7.01%
Cost of goods sold	-11624000	-50.88%	-12438842.4	50.88%*24446434.5
Selling, general and administrative expenses	-3994000	-17.48%	-4273979.4	17.48%*24446434.5
Depreciation expenses	-1358000	-5.94%	-1453195.8	5.94%*24446434.5
EBIT	5869000	25.69%	6280416.9	Sales-Cost of goods sold-SGA expenses-depreciation
Interest expenses	-176000	-0.77%	-188337.6	0.77%*24446434.5
Taxable Income	5693000	24.92%	6092079.3	EBIT-Interest expenses
Taxes	-2494932	-10.92%	-2669826.7	10.92%*24446434.5
Net income	3198068	14.00%	3422252.6	Taxable Income-Taxes