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    Pro-Forma Income Statement

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    Pro-Forma Income Statement
    Silver Company has asked you to prepare a pro-forma income statement for the coming year.The following information is available:

    Expected sales revenue . . . . . . . . . . . . . . . .. . . $1,240,000
    Manufacturing costs:
    Variable cost of goods sold . . . . . . . . . . . . . . 625,000
    Fixed overhead . . . . . . . . . . . .. . . . . . 125,000
    Selling expenses:
    Variable expenses . . . . . . . . . . . . . . 140,000
    Fixed expenses . . . . . . . . . . . . . . . 45,000
    Administrative expenses:
    Variable expenses . . . . . . . . . . . . 45,000
    Fixed expenses . . . . . . . . . . . . . . 160,000
    Other:
    Interest expense . . . . . . . . . .. . . . 28,000
    Income tax rate . . .. . . . . . . . . . . . . . . . 35%

    Prepare a pro-forma contribution margin income statement for Silver Company.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:41 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/pro-forma-income-statement-159604

    Solution Preview

    Pro-Forma Income Statement
    Silver Company has asked you to prepare a pro-forma income statement for the coming year.The following information is available:

    Expected sales revenue . . . . . . . . . . . . . . . .. . . $1,240,000
    Manufacturing costs:
    Variable cost of goods sold . . . . . . . . . . . . . . 625,000
    Fixed overhead . . . . . . . . . . . .. . ...

    Solution Summary

    This solution is comprised of Pro-Forma Income Statement for Silver Company.

    $2.19