Pro forma.

You are a financial analyst that has been hired to forecast the possible funding need for a company based on its financial information and future plans. You know that the net property, plant, and equipment at the end of 2018 was $25,000K and it currently equals $30,000K. Long-term debt at the end of 2018 was $15,000K and it currently equals $17,000K. You assumed that sales will decreased by 10 percent. Given the companys recent income statement, you constructed the pro forma below:

1. Report the ratios for the Cost of Goods Sold, Depreciation, Interest Expense, and Tax that you used to construct the pro-forma net income statement for fiscal year end 2020.

Proforma Ratio assumptions Net Income Statement, Fiscal Year End 2019 (in thousands of $) Sales 30000 (30000 x0.9) PPE 2018 = 25,000 27000 18000 Cost of Goods Sold 20000 PPE 2019 = 30,000 Depreciation 3000 3600 LT DEBT 2018 = 15,000 LT DEBT 2019 = 17,000 EBIT Interest Expense 7000 1200 5400 1360 Pre-Tax Income 5800 4040 Tax 870 606 Net Income 4930 3434