You estimate that Barton Corporation will generate sales next year of $20 million, and that cost of goods sold and operating expenses will be 20% and 35% of sales respectively. You further estimate that depreciation will be $3,000,000 next year and the companys average tax rate is 34%.

Barton currently has $24 million of outstanding debt with an average interest rate of 10%. The company plans to issue $10 million of additional debt with an interest rate of 6.5%. $7millions of the new debt will be used to fund expansion, while $3 million will be used to pay off some of the companys higher rate debt with an average interest rate of 13%. You estimate shares outstanding next year of 600,000.

Use this information to create a Pro-forma income statement for Barton and estimate next years EPS

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