Question: q 8 please read well and give me answer as it is required clear one just fill the schedule i have un clear and somtime
q 8 please read well and give me answer as it is required clear one just fill the schedule
i have un clear and somtime wrong ansers pls pls
You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.7 million and cost of goods sold of $3.42 million. You will be depreciating a
$1 million machine for 5 years using straight-line depreciation. Your tax rate is 35%. Finally, you expect working capital to increase from $190,000 in year 2 to $305,000
in year 3. What are your pro forma earnings for year 3? What are your pro forma free cash flows for year 3?
Question content area bottom
Part 1
Complete the following pro forma statement.(Round to the nearest dollar.)
| Pro Forma |
| Year 3 |
| Sales | $ |
|
| COGS |
| |
| Depreciation |
| |
| EBIT |
| |
| Tax |
| |
| Earnings |
| |
| Depreciation |
| |
| Net working capital |
| |
| Free cash flows |
|
|
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