Problem #1: Proforma Statements

Prepare a common-size income statement given the following information:

Revenues = $100,000

COGS = $43,000

SG&A = $22,000

Depreciation = $10,000

Interest Owed = $5,000

Tax Rate = 40%

Problem #2: Proforma Statements Prepare a pro forma income statement from the data and common size income statement from Problem #1, assuming that the sales will grow by 5% and all expenses but interest and taxes will scale with sales.

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