A company anticipates revenues next year of $3,000,000. Interest expense is expected to remain the same at $50,000. The company expects to pay $40,000 in cash dividends.
Below is the Income Statement as of December 31, 2014.
Prepare a Pro-Forma income statement for December 31, 2015 using the percentage of sales method.
ACTUAL 2014
Sales Revenue $1,700,000
COGS $1,105,000
Gross Profits $595,000
Operating Expenses $120,000
EBIT $475,000
Interest Expense $50,000
EBT $425,000
Tax $170,000
Dividends $15,000
To Retained Earnings $240,000