Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow?
Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow?
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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100%
Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow ?
The pro forma free cash will be $___?
(round to the nearest dollar)
Transcribed Image Text:Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax
rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow?
Complete the pro forma income statement below: (Round to the nearest dollar.)
Sales
%24
Cost of Goods Sold
2$
Gross Profit
$
Depreciation
2$
EBIT
2$
Taxes (25%)
Earnings
24
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