Year		1	2	3	4	5	6	7	8	9	10
Operating Profit		Given	685,000	736,375	791,603	811,393	831,678	852,470	873,782	895,626	918,017	940,967
Depreciation & Amortization		Given	276,083	-	-	-	-	-	-	-	-	-
Interest Expense		Given	212,625	182,250	151,875	121,500	91,125	60,750	30,375	-	-	-
Earnings before Tax		Calculate
Taxes	45%	Calculate									-	-
Net Income		Calculate									-	-
				Note: Depreciation only occurs in yr 1 and then $0 for the remaining years
				Students are to calculate Lines 13, 15 and 17
Question	Point Value
5	7	Given the pro forma income statement, calculate the Net Income for Each year
		What is the Net Income for year 3?
6	7	What is the amount of taxes paid in year 1?
7	7	Use sensitivity analysis to calculate the amount of tax savings is realized in year 2 due to Depreciation and amortization.
		What is the amount of taxes saved in your 2 due to Depreciation and Amortization?
8	7	How would operating profit change is the company had no long term debt?