Question
Company has forecasted a sales growth rate of 15% for next year (Fiscal Year 2023). Please use the percentage-of-sales approach to construct the firms pro-forma
Company has forecasted a sales growth rate of 15% for next year (Fiscal Year 2023). Please use the percentage-of-sales approach to construct the firms pro-forma income statement for next year (template is provided)
| Sales Increase | |||
| Income Statement | Fiscal Year 2022 | Analysis (if required) | Fiscal Year 2023 |
| Sales revenue | $400,000.00 | ||
| Costs except depreciation | $300,000.00 | ||
| EBITDA | $100,000.00 | ||
| Depreciation and amortization | $20,000.00 | ||
| Earnings Before Income and Taxes (EBIT) | $80,000.00 | ||
| Interest expense | $5,000.00 | ||
| Earnings before taxes (EBT) | $75,000.00 | ||
| Taxes (20%) | $15,000.00 | ||
| Net Income | $60,000.00 | ||
| Common stock dividends | $42,000.00 | ||
| Increase in retained earnings | $18,000.00 |
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
