Description of this paper

1. Construct a pro forma income statement for the first year and second

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solution


Question

Question;1. Construct a pro forma income statement for the first year;and second year for the following assumptions;Units of sales in year 1: 110,000;Price per Unit: $11;Variable cost per unit: 30%;Fixed Costs: $125,000;Income taxes: 15%;Interest Expense: $200,000;In year 2, Price per unit increases to $11.50, and unit of;sales increases by 5%, all other assumptions remain the same.

 

Paper#43975 | Written in 18-Jul-2015

Price : $22
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