Question

Your pro forma income statement shows sales of

$975,000​,

cost of goods sold as

$503,000​,

depreciation expense of

$102,000​,

and taxes of

$148,000

due to a tax rate of

40 %

What are your pro forma​ earnings? What is your pro forma free cash​ flow?

Complete the pro forma income statement​ below:  ​(Round to the nearest​ dollar.)

Sales	$
Cost of Goods Sold	$
Gross Profit	$
Depreciation	$
EBIT	$
Taxes (40%)	$
Earnings	$

Answer 1

I have answered the question below

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Answer:

	Particulars	Amount($)
	Sales	975000
	LESS:- Cost of goods sold	-503000
	Gross Profit	472000
	Less:- Depreciation	-102000
	EBIT	370000
	Taxes [40% of 370000]	-148000
	Earnings [ans]	222000
1]Proforma earnings = $222000
2]Proforma free cash flow = Earnings + Depreciation
324000
$324000