Problem:
A proposed new investment has projected sales of $650,000. Variable costs are 65 percent of sales, and fixed costs are $154,000; depreciation is $55,000. Prepare a pro forma income statement assuming a tax rate of 34 percent.
Required:
Question: What is the projected net income? (Input all amounts as positive values.)
- Sales =
- Variable costs =
- Fixed costs =
- Depreciation =
- EBT =
- Taxes =
- Net income =
Note: Explain all steps comprehensively.