A proposed new investment has projected sales of $600,000. Variable costs are 45% of sales, and fixed costs are $150,000. Depreciation is $90,000. Prepare a pro forma income statement assuming a tax rate of 35%. What is the projected net income? What is the operating cash flow?

A proposed new investment has projected sales of $600,000. Variable costs are 45% of sales, and fixed costs are $150,000. Depreciation is $90,000. Prepare a pro forma income statement assuming a tax rate of 35%. What is the projected net income? What is the operating cash flow?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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Need help with this question solution general accounting

A proposed new investment has projected sales of $600,000. Variable costs
are 45% of sales, and fixed costs are $150,000. Depreciation is $90,000.
Prepare a pro forma income statement assuming a tax rate of 35%. What is the
projected net income? What is the operating cash flow?

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