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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Question
Question 6 HW
![Pro forma income statement. Given the income statement in the popup window, E, for California Cement Company for 2013 and an expected sales growth rate of
7.43% for 2014, prepare a pro forma income statement for 2014.
First, find the percentage of each income statement line from 2013 as a percent of sales
Data Table
California Cement Company
Income Statement for 2013
Sales revenue
22,868,000
-11,678,000
$
California Cement Company
Cost of goods sold
$
Income Statement for 2013
Selling, general, and administrative expenses
$
-3,919,000
Sales revenue
22,868,000
Depreciation expenses
$
-1,367,000
Cost of goods sold
2$
-11,678,000
EBIT
$
5,904,000|
Selling, general, and administrative expenses
$
-3,919,000
Interest expense
$
-174.000
Depreciation expenses
$
-1,367,000
Taxable income
Taxes
$
5,730,000
EBIT
5,904,000
$
-2,511,147
Interest expense
$
-174,000
Net income
$
3,218,853
Taxable income
5,730,000
Taxes
$
-2,511,147
Net income
$
3,218,853
Duin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a986b02-ba6c-4ef1-b256-a9c9c22af021%2F4092e22e-0714-4a48-90fb-4ab0dde9a33a%2Ffdgv3uv_processed.png&w=3840&q=75)
Transcribed Image Text:Pro forma income statement. Given the income statement in the popup window, E, for California Cement Company for 2013 and an expected sales growth rate of
7.43% for 2014, prepare a pro forma income statement for 2014.
First, find the percentage of each income statement line from 2013 as a percent of sales
Data Table
California Cement Company
Income Statement for 2013
Sales revenue
22,868,000
-11,678,000
$
California Cement Company
Cost of goods sold
$
Income Statement for 2013
Selling, general, and administrative expenses
$
-3,919,000
Sales revenue
22,868,000
Depreciation expenses
$
-1,367,000
Cost of goods sold
2$
-11,678,000
EBIT
$
5,904,000|
Selling, general, and administrative expenses
$
-3,919,000
Interest expense
$
-174.000
Depreciation expenses
$
-1,367,000
Taxable income
Taxes
$
5,730,000
EBIT
5,904,000
$
-2,511,147
Interest expense
$
-174,000
Net income
$
3,218,853
Taxable income
5,730,000
Taxes
$
-2,511,147
Net income
$
3,218,853
Duin
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