FORECASTING IN CLASS ASSIGNMENT (3) Year 1 ADJUSTMENTS PRO FORMA REVENUES 3,000 COGS 1,800 GROSS PROFIT 1,200 SG&A 700 DEPRECIATION 140 OPERATING INCOME 360 EBITDA 500 DEBT 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