A proposed new investment has projected sales of $700,000. Variable costs are 60 percent of sales, and

Question:

A proposed new investment has projected sales of $700,000. Variable costs are 60 percent of sales, and fixed costs are $175,000; depreciation is $75,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?

Fantastic news! We've Found the answer you've been seeking!