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How do you calculate a pro forma for a income statement ?

How do you calculate a pro forma for a income statement ?

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Answer #1

Solution :

In order to calculate proforma invoice statement we need to do following things

1. Forecast the future growth rate of sales

2. Find the ratio of COGS / Sales and we can take the average of 5 years historical ratio to predict the future COGS .

3. Similarly based on the historical average and future expectations find other cost

4. Calculate the future interest based on the debts that the company will have

5. Find the net income after subtracting the cost from revenue and then subtracting interest and taxes

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