Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales willgrow by 5% and all expenses but interest and taxes will scale with sales. Prepare a common size income statement given the following information:Revenues = $100,000COGS = $43,000SG&A = $22,000Depreciation = $10,000Interest Owed = $5,000Tax Rate = 40%

Each line item on an income statement that uses percentages of revenue or sales is known as a common…

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Accounting

Prepare a common size income statement given the following information:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29E

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Question

Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales will
grow by 5% and all expenses but interest and taxes will scale with sales.

Prepare a common size income statement given the following information:
Revenues = $100,000
COGS = $43,000
SG&A = $22,000
Depreciation = $10,000
Interest Owed = $5,000
Tax Rate = 40%

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