You are evaluating a new product. In year 3 of your​ analysis, you are projecting pro forma sales of ​$5.8 million and cost of goods sold of ​$3.48 million. You will be depreciating a ​$2 million...




You are evaluating a new product. In year 3 of your​ analysis, you are projecting pro forma sales of
​$5.8

million and cost of goods sold of
​$3.48

million. You will be depreciating a
​$2

million machine for
5

years using​ straight-line depreciation. Your tax rate is
33​%.

​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.)

























































Pro Forma




Year 3


Sales


$






COGS






Depreciation






EBIT






Tax






Earnings






Depreciation






Net working capital






Free cash flows













Jun 06, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here