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A proposed new investment has projected sales of $522,000. Variable costs are 42 percent of sales, and fixed costs are $127,500; depreciation is $49,250. Prepare a pro forma income statement assuming a tax rate of 22 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income

A proposed new investment has projected sales of $522,000. Variable costs are 42 percent of sales, and fixed costs are $127,500; depreciation is $49,250. Prepare a pro forma income statement assuming a tax rate of 22 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income

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 $522,000. Variable costs are 42 percent of sales, and fixed costs are $127,500; depreciation is $49,250. Prepare a pro forma income statement assuming a tax rate of 22 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income
Transcribed Image Text:A proposed new investment has projected sales of $522,000. Variable costs are 42 percent of sales, and fixed costs are $127,500; depreciation is $49,250. Prepare a pro forma income statement assuming a tax rate of 22 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income
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