1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. The Financial Statements
5. Income Statement
6. 159604

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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.