ZZZ Mattress Co$.$

Pro Forma Income Statement

For the year ending, December $31,2022$

Sales $$330,000$

Less: Cost of goods sold $($$$214,500)$

Gross Profit $$115,500$

Less: Selling Expense $$44,000$

General and Administrative Expense $$12,110$

Less: Depreciation $$15,000$

Operating Profit $$44,390$

Less: Interest Expense $$12,000$

Net Profit Before Taxes $$32,390$

Less: Taxes $(21\%)$ $$6,802$

Net Profit After Taxes $$25,588$

Instructions:

compute EBIT and Operating Cash Flow