(SOLVED) Your pro forma income statement shows sales of $1,008,000, cost of goods sold as $491,000, depreciation expense of $101,000, and taxes of $166,400 due to a tax rate of 40%.

Question

Your pro forma income statement shows sales of $1,008,000, cost of goods sold as $491,000, depreciation expense of $101,000, and taxes of $166,400 due to a tax rate of 40%.

What are your pro forma earnings? What is your pro forma free cash flow?

Complete the pro forma income statement below: (Round to the nearest dollar.)

Sales

Cost of Goods Sold ____

Gross Profit____

Depreciation_____

EBIT______

Taxes (40%)_______

Earnings _________