You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $ 5.7 million and cost of goods sold of $ 3.42 million. You will be depreciating a $ 2 million machine for 5 years using straight-line depreciation. Your tax rate is 35%. Finally, you expect working capital to increase from $ 190,000 in year 2 to $ 305,000 in year 3. What are your pro forma earnings for year 3? What are your pro forma free cash flows for year 3?

You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.7 million and cost of goods sold of $3.42 million. You will be depreciating a $2 million machine for 5 years using straight-line depreciation. Your tax rate is 35%. Finally, you expect working capital to increase from $190,000 in year 2 to $305,000 in year 3 . What are your pro forma earnings for year 3 ? What are your pro forma free cash flows for year 3 ? Complete the following pro forma statement. (Round to the nearest dollar.)