Financial

1.    Construct a pro forma income statement for the first year and second year for the following assumptions:

o    Units of Sales in Year 1: 100,000

o    Price per Unit: $10

o    Variable cost per unit: 30%

o    Fixed Costs: $120,000

o    Income taxes: 15%

o    Interest Expense: $200,000

o    In year 2, Price per unit increases to $11.50, and unit of sales increases by 3%, all other assumptions remain the same.