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A proposed new investment has projected sales of $515,000. Variable costs are 38 percent of sales, and fixed costs are $131,500; depreciation is $51,250. Prepare a pro forma income statement assuming a tax rate of 25 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 515,000 Variable costs 221,450 Fixed costs Depreciation 53,500 EBT $ 104,050 Taxes 24,972 Net income $ 79,078

A proposed new investment has projected sales of $515,000. Variable costs are 38 percent of sales, and fixed costs are $131,500; depreciation is $51,250. Prepare a pro forma income statement assuming a tax rate of 25 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 515,000 Variable costs 221,450 Fixed costs Depreciation 53,500 EBT $ 104,050 Taxes 24,972 Net income $ 79,078

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A proposed new investment has projected sales of $515,000. Variable costs are 38 percent of sales, and fixed costs are $131,500; depreciation is $51,250. Prepare a pro forma income statement assuming a tax rate of 25 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 515,000 Variable costs 221,450 Fixed costs Depreciation 53,500 EBT $ 104,050 Taxes 24,972 Net income $ 79,078
Transcribed Image Text:A proposed new investment has projected sales of $515,000. Variable costs are 38 percent of sales, and fixed costs are $131,500; depreciation is $51,250. Prepare a pro forma income statement assuming a tax rate of 25 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 515,000 Variable costs 221,450 Fixed costs Depreciation 53,500 EBT $ 104,050 Taxes 24,972 Net income $ 79,078
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