Task: Pro-Forma Income Statement
Silver Company has asked you to prepare a pro-forma income statement for the coming year.The following information is available:
Expected sales revenue . . . . . . . . . . . $1,240,000
Manufacturing costs:
Variable cost of goods sold . . . . . . . . . .625,000
Fixed overhead . . . . . . . . . . . .. . . . . . 125,000
Selling expenses:
Variable expenses . . . . . . . . . . . . . . 140,000
Fixed expenses . . . . . . . . . . . . . . . 45,000
Administrative expenses:
Variable expenses . . . . . . . . . . . . 45,000
Fixed expenses . . . . . . . . . . . . . . 160,000
Other:
Interest expense . . . . . . . . . .. . . . 28,000
Income tax rate . . .. . . . . . . . . . . . . . . . 35%
Prepare a pro-forma contribution margin income statement for Silver Company.