Prepare a common size income statement given the following information:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales will
grow by 5% and all expenses but interest and taxes will scale with sales.

Transcribed Image Text:Prepare a common size income statement given the following information:
Revenues = $100,000
COGS = $43,000
SG&A = $22,000
Depreciation = $10,000
Interest Owed = $5,000
Tax Rate = 40%
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