Please show all equations and answer question fully. Finish the pro forma income statement: Tax Rate...

Please show all equations and answer question fully. Finish the pro forma income statement:

Tax Rate	25%
Starting Sales	$1,250,000,000
Sales Growth Rate	0%
Price	$250
COGS %	81%
SGA %	7%
Depreciation	$10,000,000


Year	0	1	2	3	4	5	6
Sales Revenue		312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000
COGS		253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000
SGA		21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000
Depreciation		10,000,000	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Operating Profit
Taxes
Net Profit

Expert Solution

Operating Profit = Sales - ( COGS + SGA + Depreciation ) = 37,490, 000, 000

Taxes @ 25% = 25% * Operating Profit = 9,372, 500, 000

Net Profit = Operating Profit - Taxes = 28,117, 500, 000

Year	0	1	2	3	4	5	6
Sales Revenue		312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000	312,500,000,000
COGS		253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000	253,125,000,000
SGA		21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000	21,875,000,000
Depreciation		10,000,000	10,000,000	10,000,000	10,000,000	10,000,000	10,000,000
Operating Profit		37,490,000,000	37,490,000,000	37,490,000,000	37,490,000,000	37,490,000,000	37,490,000,000
Taxes		9,372,500,000	9,372,500,000	9,372,500,000	9,372,500,000	9,372,500,000	9,372,500,000
Net Profit		28,117,500,000	28,117,500,000	28,117,500,000	28,117,500,000	28,117,500,000	28,117,500,000

jeff jeffy answered 3 years ago

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