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    Proforma Income Statement Question - Silver Company

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

    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, 8:55 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/proforma-income-statement-question-silver-company-166797

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    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

    The solution explains how to prepare a contribution margin format pro-forma income statement

    $2.19