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    Pro Forma Income Statement for Company

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    Prepare a pro forma income statement for Hi-Tech Manufacturing Company using the following information:
    1. Projected sales of $2,025,000 based on 1,000 units
    2. Cost of goods sold: $1,200 variable cost per unit and $135,000 of fixed costs
    3. Selling and administrative expenses: $20,000 per month
    4. Depreciation: $10,000 per month from January through April and $12,000 per month from May through December
    5. Interest expense: $40,000
    6. Tax rate: 46 percent

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    https://brainmass.com/business/finance/pro-forma-income-statement-company-598490

    Solution Preview

    Sales = $2,025,000.
    Cost of goods sold = 1,000 * $1,200 + $135,000 = $1,335,000
    Gross profit = Sales - Cost of goods sold = $2,025,000 - ...

    Solution Summary

    This solution calculates the pro forma income statement based on given information regarding sales, cost of goods sold, selling and administrative expenses, depreciation, interest expense, and the tax rate.

    $2.19