Sony Inc. has decided to sell a new line of blue$-$tooth speakers. You have been asked by the CFO to assess the financial viability of the new line of speakers.

Sony will require new manufacturing equipment that will cost $$500,000$ to make the speakers. The equipment will have a useful life of $5$ years and will be depreciated on the straight$-$line basis to $$0$ for tax purposes. The company spent $$40,000$ on a marketing study that determined the equipment will have to be scrapped and disposed of after the five years. The marketing study also determined that the company could sell $8,000$ speakers in each of the $5$ years. The speakers will sell for $$100$ per speaker. The anticipated variable costs will be $$70$ per speaker and the fixed costs per year will be $$75,000.$

The cost of capital for the firm is $11\%$ and the company is subject to a tax rate of $30\%.$ The company expects to make an investment in working capital at the beginning of the project in the amount of $$10,000($which will be released at the end of the project$).$

Fill in the required spaces below using the information above to complete the proforma income statement: