Under the assumption that Ideko's market share will increase by 0.65 percent per year, you project the following investment and depreciation:

Fixed Assets and Capital Investment ($ 000)
	2005	2006	2007	2008	2009	2010
New Investment	5,000	5,000	5,000	5,000	5 comma 0005,000	19 comma 40019,400
Depreciation	(5,480)	(5,432)	(5,389)	(5,350)	( 5 comma 315 )(5,315)	( 6 comma 723 )(6,723)

Using this information and the information here

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IMPORTANT:

Please click on the icon to import the table into a spreadsheet and use all the values as rounded on the spreadsheet. DO NOT recalculate the forecasted values.), project net income through 2010 (that is, reproduce Table 19.7

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under the new assumptions). Assume the corporate tax rate is .35%.

Ideko's income statement for 2005 is shown here

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.

To build the pro forma income statement, we begin with Ideko's sales.(Round to the nearest $ 000.)

Income Statement ($ 000)	2005	2006	2007	2008	2009	2010
Sales	76,674
(Click on the Icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Estimated 2005 Income Statement Data for Ideko Corporation Income Statement ($ 000) Sales 76,674 Cost of Goods Sold Raw Materials (16,066) Direct Labor Costs (18,146) Gross Profi 42,462 Sales and Marketin (11,570) Administrat (13,824) EBITDA 17,068 Depreciation (5,480) EBIT 11,588 Interest Expense (net) (77) Pretax Income 11,511 Income Tax (4,029) Net Income Modifying 7 comma 482 with double underline 7,482

		Year
	Growth	2005	2006	2007	2008	2009	2010
Sales Data
Market Size (000 units)	5.005.00%	10 comma 20010,200	10 comma 71010,710	11 comma 24611,246	11 comma 80811,808	12 comma 39812,398	13 comma 01813,018
Market Share	0.650.65%	9.909.90%	10.5510.55%	11.2011.20%	11.8511.85%	12.5012.50%	13.1513.15%
Average Sales Price ($/unit)	1.851.85%	75.9375.93	77.3377.33	78.7778.77	80.2280.22	81.7181.71	83.2283.22
Cost of Goods Data
Raw Materials ($/unit)	1.051.05%	15.9115.91	16.0816.08	16.2516.25	16.4216.42	16.5916.59	16.7616.76
Direct Labor Costs ($/unit)	4.104.10%	17.9717.97	18.7118.71	19.4719.47	20.2720.27	21.1021.10	21.9721.97
Operating Expense Data
Sales and Marketing (% sales)		15.0915.09	16.4916.49	17.8917.89	19.2919.29	19.6919.69	19.6919.69
Administrative (% sales)		18.0318.03	15.0315.03	15.0315.03	14.0314.03	13.0313.03	13.0313.03
Interest on Term Loan ($ 000)		( 77 )(77)	( 6 comma 757 )(6,757)	( 6 comma 757 )(6,757)	( 6 comma 757 )(6,757)	( 6 comma 757 )(6,757)