A B E FORECASTING IN CLASS ASSIGNMENT (3) ADJUSTMENTS PRO FORMA REVENUES COGS Year 1 3,000 1,800 1,200 700 140 GROSS PROFIT SG&A DEPRECIATION 360 OPERATING INCOME EBITDA 500 DEB 2,200 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were $2,500, with similar gross margins. Assume SG&A increases $600. Assume no incremental depreciation. 1. Fill in the adjustments and pro forma column. 2. Calculate Debt/EBITDA and interest coverage in the pro forma column. A B E FORECASTING IN CLASS ASSIGNMENT (3) ADJUSTMENTS PRO FORMA REVENUES COGS Year 1 3,000 1,800 1,200 700 140 GROSS PROFIT SG&A DEPRECIATION 360 OPERATING INCOME EBITDA 500 DEB 2,200 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were $2,500, with similar gross margins. Assume SG&A increases $600. Assume no incremental depreciation. 1. Fill in the adjustments and pro forma column. 2. Calculate Debt/EBITDA and interest coverage in the pro forma column