Your pro forma income statement shows sales of $ 965 comma 000, cost of goods sold as $ 492 comma 000, depreciation expense of $ 96 comma 000, and taxes of $ 94 comma 250 due to a tax rate of 25 %. What are your pro forma earnings? What is your pro forma free cash flow?

Answer and Explanation:

The computation is shown below:

For Proforma earnings

Sales$965,000

Less: Cost of Goods sold $492,000

Gross Profit$473,000

Less: Depreciation expense  $96,000

EBIT$377,000

Less: Taxes$94,250

Proforma Earnings $282,750

Now the proforma free cash flow is

= Proforma Earnings+ depreciation expense

= $282,750 + $96,000

= $378,750

We simply applied the above format and equation to determine each of the item

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.