D$.$ Pro Form Financial Reporting and Interpretation

The income statement for the ZZZ Mattress Co$.$ for the year ended December $31,2021$ follow.

The ZZZ Mattress Co$.$ has been requested by the $1$st National Bank, a major creditor, to prepare

a pro forma financial reporting for the year ending, December $31,2022.$ Using the percent$-$of$-$

sales method and the following financial data:

$\mathrm{.}2022$ sales are estimated at $$330,000.$

Total depreciation expense for $2022$ will be $$15,000.$

$.$ Corporate Tax Rate $-21\%$

Prepare a pro forma income statement to compute EBIT and Operating Cash Flow