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Income Statement for 2015
Sales Revenue
Cost of Goods Sold
Selling, General & Admin Exp
Depreciation Expense
EBIT
Interest Expense
Taxable Income
Taxes
Net Income
$35,500,000
12,725,000
11,200,000
3,200,000
8,375,000
350,000
8,025,000
3,210,000
4,815,000
Transfer this income statement to an Excel spreadsheet and begin to prepare a
Pro Forma Income statement for 2016 based on the following information:
1. Sales revenue to increase 5.2%, COGS to increase 4.5%, S,G&A will
increase 3.8% and depreciation expense will be $3,255,000. Assume interest
expense to be $375,000 and taxes are to be 40% of taxable income. You will
now have income statements for 2015 and 2016 for ICS Manufacturing.
This is the balance sheet information for ICS Manufacturing Company:
ICS Manufacturing Company
Balance Sheet for year ending December 31, 2015
Assets
Liabilities
Cash
$2,625,000
Accounts
Payable
$5,825,000
Accounts Receivable $2,715,000
Other Current
Liabilities $3,365,000
Inventories
$1,514,000
Total Current Liabilities $9,190,000
Total Current Assets $6,854,000