Your pro-forma income statement shows sales of $1,000,000, cost of goods sold as
ID: 2785870 • Letter: Y
Question
Your pro-forma income statement shows sales of $1,000,000, cost of goods sold as $494,000, depreciation expense of $101,000, and taxes of $162,000 due to a tax rate of 40%. 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 Cost of Goods Sold Gross Profit Depreciation EBIT Taxes (40%) Earnings $1,000,000 (494,000) $506,000 (101,000) $ 405,000 (162,000) S 243,000 The pro-forma free cash flow will be $ . (Round to the nearest dollar.)Explanation / Answer
Pro-forma free cash flow
=earnings+depreciation
=243000+101000
=344000
the above is the answer
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