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Complete the following pro forma financial statements for XYZ Corporation. Assume the following: 20% sales growth, no changes in the tax rate, cost of goods
Complete the following pro forma financial statements for XYZ Corporation. Assume the following: 20% sales growth, no changes in the tax rate, cost of goods sold is 60% of sales, operating expense is 10% of sales, tax is 30% and a 50% dividend payout ratio. Round figures to the nearest whole dollar
\begin{tabular}{|r|r|r|} \hline \multicolumn{3}{|c|}{ Income Statement } \\ \hline 2022 & 2021 & \\ \hline & 1,000$ & Sales \\ \hline & 600 & Cost of goods sold \\ \hline & 100 & Operating expense \\ \hline 130 & 100 & Depreciation expense \\ \hline & 200 & EBIT \\ \hline 20 & 25 & Interest expense \\ \hline & 175 & Pre-tax income \\ \hline & 52.5 & Tax \\ \hline & 122.5$ & Net income \\ \hline \end{tabular}Step by Step Solution
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