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

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