PIE Pro-forma Income Statement For the Year Ended Dec. 31, 2016 2015 2017* 5 Sales 104.00 3,850.00,432.00 4.283.93 3,250.00 2,864.00 84.42% 83.45% 83.93% EXAMPLE 6 Cost of Goods Sold 7 Gross Profit 8 Selling and G&A Expenses 9Fixed Expenses 10 Depreciation Expense 568.00 330.30 240.00 100.00 100.00 Using the Percent-of-Sales Method to complete the Proforma Income Statement 20.00 18.90 and Balance Sheet. 11 EBIT 149.70 209.10 (hint) Only certain items vary directly with sales, some are fixed. PIE plans on purchasing a $50,000 piece of equipment. Does this cause a problem with the Balance Sheet. How could we fix it? 76.00 12 Interest Expense 13 Earnings Before Taxes 14 Taxes 73.70 146.60 29.48 15 Net Income 87.96 16 Forecast 18 Notes: 19 Tax Rate 20 Additional Depreciation 21 Interest Rate 5.00 PIE Pro-forma Balance Sheet As of Dec. 31, 2016 017+ 33 Total Current Assets 37 Total Assets Short-term Notes Payable 42 Total Current Liabilities 48 Total Liabilities and Owner's E 53 Net Addition to Plant&Equipment 54 Life of New Equipment in Ycars 55 New Depreciation (Straight Line) 50.00 5.00 57 Note that firm's capital expenditures 58 are expected to rise by S50,000 in the 59 new year. This will lead to an increase PIE Pro-forma Income Statement For the Year Ended Dec. 31, 2016 2015 2017* 5 Sales 104.00 3,850.00,432.00 4.283.93 3,250.00 2,864.00 84.42% 83.45% 83.93% EXAMPLE 6 Cost of Goods Sold 7 Gross Profit 8 Selling and G&A Expenses 9Fixed Expenses 10 Depreciation Expense 568.00 330.30 240.00 100.00 100.00 Using the Percent-of-Sales Method to complete the Proforma Income Statement 20.00 18.90 and Balance Sheet. 11 EBIT 149.70 209.10 (hint) Only certain items vary directly with sales, some are fixed. PIE plans on purchasing a $50,000 piece of equipment. Does this cause a problem with the Balance Sheet. How could we fix it? 76.00 12 Interest Expense 13 Earnings Before Taxes 14 Taxes 73.70 146.60 29.48 15 Net Income 87.96 16 Forecast 18 Notes: 19 Tax Rate 20 Additional Depreciation 21 Interest Rate 5.00 PIE Pro-forma Balance Sheet As of Dec. 31, 2016 017+ 33 Total Current Assets 37 Total Assets Short-term Notes Payable 42 Total Current Liabilities 48 Total Liabilities and Owner's E 53 Net Addition to Plant&Equipment 54 Life of New Equipment in Ycars 55 New Depreciation (Straight Line) 50.00 5.00 57 Note that firm's capital expenditures 58 are expected to rise by S50,000 in the 59 new year. This will lead to an increase