Problemconstruct a pro forma income statement for the first, Ask an Expert

Accounting

Problem:

Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110,000 Price per Unit: $11 Variable cost per unit: 25% Fixed Costs: $129,000 Income taxes: 20% Interest Expense: $170,000 In year 2, Price per unit increases to $13.50, and unit of sales increases by 4%, all other assumptions remain the same.

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166540

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