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3) please highlight the answer You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.2

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3) please highlight the answer

You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.2 million and cost of goods sold of $3.12 million. You will be depreciating a $2 million machine for 5 years using straight-line depreciation. Your tax rate is 33%. Finally, you expect working capital to increase from $200,000 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 ? Complete the following pro forma statement. (Round to the nearest dollar.)

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