A proposed new investment has projected sales of $635,000, Variable Costs are 44% of sales, and Fixed Costs are $193,000, depreciation is $54,000. Prepare a pro-forma income statement assuming a tax rate of .34%. What is the projected EBITDA, what is NET INCOME and OPERATING CASH FLOW

A proposed new investment has projected sales of $635,000, Variable Costs are 44% of sales, and Fixed Costs are $193,000, depreciation is $54,000. Prepare a pro-forma income statement assuming a tax rate of .34%. What is the projected EBITDA, what is NET INCOME and OPERATING CASH FLOW

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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