A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales,...

A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,0

A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000; depreciation is $51,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Input all amounts as positive values.)

Sales

Variable costs

Fixed costs

Depreciation

EBT

Taxes

Net income

Expert Solution

	SALES	585000
LESS	VARIABLE COST	257400	(585000 * 44%)
LESS	FIXED COST	187000
LESS	DEPRECIATION	51000
	EBT	89600
LESS	TAX	18816	(89600 * 21%)
	NET INCOME	70784

jeff jeffy answered 2 years ago

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