Construction of a pro forma income statement
Not what you're looking for?
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.
Purchase this Solution
Solution Summary
This solution constructs a pro forma income statement for two years in the given case.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Basics of corporate finance
These questions will test you on your knowledge of finance.