Expert answer:Accounting Problem – Construct a pro forma income

  

Solved by verified expert :1. Construct a pro forma income statement for the first year and second year for the following assumptions:Units of sales in year 1: 110,000Price per Unit: $11Variable cost per unit: 30%Fixed Costs: $125,000Income taxes: 15%Interest Expense: $200,000In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same.

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