1A) A construction company takes a loan of $1,076,000 to cover the cost of a new grader. If the interest rate is 7.1% APR, and payments are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month?

A. 5.92 B. 0.64 C. 0.59 D. 0.54 E. 0.69

1B)

Your pro forma income statement shows sales of $991,000, cost of goods sold as $525,000, depreciation expense of $104,000, and taxes of $144,800 due to a tax rat of 40%. What are your pro forma earnings? What is your pro forma free cash flow? Complete the pro forma income statement below: (Round to the nearest dollar.) Sales $ Cost of Goods Sold Gross Profit $ $ $ Depreciation EBIT TA Taxes (40%) $ TA Earnings The pro forma free cash flow will be $ (Round to the nearest dollar.)