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ADJUSTMENTS PRO FORMA REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA DEBT Year 1 3,000 1,800 1,200 700 140 360 500 2,200 The company

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ADJUSTMENTS PRO FORMA REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA DEBT Year 1 3,000 1,800 1,200 700 140 360 500 2,200 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were $2,500, with similar gross margins. Assume SG&A increases $600. Assume no incremental depreciation. 1. Fill in the adjustments and pro forma column. 2. Calculate Debt/EBITDA and interest coverage in the pro forma column. ADJUSTMENTS PRO FORMA REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA DEBT Year 1 3,000 1,800 1,200 700 140 360 500 2,200 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were $2,500, with similar gross margins. Assume SG&A increases $600. Assume no incremental depreciation. 1. Fill in the adjustments and pro forma column. 2. Calculate Debt/EBITDA and interest coverage in the pro forma column

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