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    Financial Management: Pro Forma Income Statement

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    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: 25%
    -Fixed Costs: $129,000
    -Income taxes: 20%
    -Interest Expense: $170,000

    In year 2, Price per unit increases to $13.50, and unit of sales increases by 4%, all other assumptions remain the same.

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    Proforma Income Statement
    XYZ Inc.
    Year 1 Year 2
    Sales ...

    Solution Summary

    Solution demonstrates the pro forma income statement for two years in the given case.