pro forma income statement
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