A proposed new investment has projected sales of $800,000. Variable costs are 65% of sales, and fixed costs are $169,000; depreciation is $70,000. Prepare a pro forma income statement assuming a tax rate of 34%.
What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.)
Financial statements refer to the reports which show the financial performance of the firm over a certain period. The major financial statements are the balance sheet, income statement, statement of cash flow, and the statement of owner's equity.
Answer and Explanation:
The table below displays the pro porma income statement of the firm.
The projected net income of the investment is $27,060
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2