Your pro forma income statement shows sales of $ 1 comma 023 comma 000, cost of goods sold as $ 483 comma 000, depreciation expense of $ 104 comma 000, and taxes of $ 174 comma 400 due to a tax rate of 40 %. what are your pro forma earnings? what is your pro forma free cash flow? complete the pro forma income statement below: (round to the nearest dollar.)

sales $

cost of goods sold $

gross profit $

depreciation $

ebit $

taxes (40%) $

earnings $

This question require us to complete the pro forma income statement given in the question. The complete income statement pro forma is given below.

Sales $                                                   $ 1,023,000                        

Cost of Goods Sold $                          ($  483,000)

Gross Profit $                                        $ 540,000

Depreciation $                                      ($ 104,000)

EBIT $                                                     $ 436,000

Taxes (40%) $                                        ($ 174,400)

Earnings $                                             $ 261,600

Pro forma earning is 261,600.

Cash flow will be Earning + Depreciation = 261,000 + 104,000 = $ 365,000.