Show how you derived your pro forma income statement calculations and final pro forma cash flow analysis. Thus, all of your calculations should cascade to eventually solving for a final solution, which is your net present value (NPV) and Internal Rate of Return (IRR) results. Once you have the pro forma model created, please briefly describe your results and how various changes in unit volume, price, and costs can change your valuation results. This analysis includes the 20% increase and decrease in sales volumes.

Barton PC is a small-cap computer company located in Wilson NC. The company operations officer, Nancy Simpson, is also part owner in the company. Nancy started the company in the mid-90’s as a producer of small laptop computers. Over the years, laptop computer usage has slowly declined as consumers have moved to more mobile-centric devices. To capture this growing trend, Barton PC created the Barton-1 smartphone. The phone comes in just one model and has generated excellent sales. As with all modern electronics however, technology changes rapidly and the company is concerned sales will fall as new and existing competitors enter the market.
To ensure continued robust sales, Barton PC has spent $750,000 to develop a new prototype smartphone with new and enhanced features. To more fully understand the expected sales of the phone, a marketing study for $200,000 was also conducted
Nancy estimates the new phone’s variable manufacturing cost will be $205 per unit. Fixed costs for the project are estimated to run $5.1 million per year. The estimated 5-year sales volumes for the new phone are as follows: 64,000, 106,000, 87,000, 78,000 and 54,000 per year. Based on market research, Nancy feels the phone can be sold for $485 per phone. However, Nancy also finds there will be considerable upstart costs to start production. New equipment will be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the market value of the equipment in 5 years will be fully depreciated.


Net working capital for the phone will be 20% of sales and will occur with timing of the cash flows each year. In this case there are no startup costs for networking capital. Changes in net working capital will thus start when sales occur in year 1. The company has a 35% corporate tax rate and a required return on capital of 12%.

To ensure the phone creates value for the company, Nancy has requested a valuation analysis for the project. Specifically, she would like to see the net present value (NPV) and internal rate of return (IRR) for the phone over the 5-year expected sales. She would also like to see how these metrics change with various unit sales scenarios or 20% less and 20% more in unit volume sales.

Answer:How is pro forma income statement calculated?

Image result for Show how you derived your pro forma income statement calculations and final pro forma cash flow analysis. This, all of your calculations should cascade to eventually solving for a final solution, which is your net present value (NPV) and Internal Rate of Return (IRR) results.

How to Create A Pro Forma Income Statement

Sales (or Revenue) - Cost of Goods Sold = Gross Income (or Gross Earnings)

Gross Income (or Gross Sales/Earnings) - Operating Expenses = Operating Income.

Operating Income - Depreciation = EBIT.

EBIT - Interest Expense = EBT.

EBT – Taxes = Net Income (Net Earnings, EAT, Profits)

Step-by-step explanation:

factor completely. show full work

Solve the equation for the given variable
1/2 +y= 2/3

A) y=1/6
B) y=1/3
C) y=1/3
D) y=1 1/6

If I am ordering a custom wood frame costing $1.27 per inch and the entire area needing framing is 17" on all4 sides, how is price tabulated?

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These two triangles are congruent by ....
O SSS
O SAS
O HL
O ASA
O AAS
O the triangles are NOT congruent

I need help with my algebra.

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in an auditorium,there are 104 rows with 24 seats in each row.how many seats are available?

Simplify to the form of a square root of b

One method of slowing the growth of an insect population without using pesticides is to introduce into the population a number of sterile males that mate with fertile females but produce no offspring. If P represents the number of female insects in a population, S the number of sterile males introduced each generation, and r the population's natural growth rate, then the female population is related to time t by
t =
P+S
P[(r−1)P − S]
dP

Suppose an insect population with 10,000 females grows at a rate of r = 0.10 and 900 sterile males are added in each generation. Evaluate the integral to give an equation relating the female population to time. (Note that the resulting equation cannot be solved explicitly for P.)

14. Explain why a rotation of positive 180 degrees is the same as a rotation of -180 degrees.​

Customers at a gym pay a membership fee to join and then a fee for each class they attend. Here is a graph that represents the scenario.

What is the slope of the line?

Jerome makes and sells his own energy drinks. He mixes a liquid drink mix with water to create his own special blend. Jerome usually uses 8 cups of water and 3 cups of drink mix. Tomorrow, there is a road race in town, however, and Jerome thinks he’ll be able to sell a lot more of his energy drinks than usual. Jerome’s brother told him to add one cup of water for every one cup of drink mix he added to keep the ratio of water to drink mix the same and still increase the total amount of energy drink. Jerome’s sister told him to multiply both the amount of water and the amount of drink mix by the same number to keep the ratio the same and still increase the total amount of energy drink. Who is correct: Jerome’s brother or Jerome’s sister? As you complete the task, keep this question in mind: Based on what you know about ratios, what do you think the answer will be? Directions: Complete each task, reading the directions carefully as you do. You will be graded on the work you show, or your solution process, in addition to your answers. Make sure to show all your work and to answer each question as you complete the task. Type all of your work into this document so you can submit it to your teacher for a grade. You will be given partial credit based on the work you show and on the completeness and accuracy of your explanations. Your teacher will give you further directions on submitting your work. You may be asked to upload the document, e-mail it to your teacher, or hand in a hard copy. Now let’s get started! Step 1: Finding the part-to-part and part-to-whole ratios To make his special energy drink, Jerome uses 8 cups of water and 3 cups of drink mix. What is the ratio of water to drink mix? (2 points) What is the ratio of drink mix to water? (2 points) What is the ratio of drink mix to mixed energy drink? (2 points) What is the ratio of water to mixed energy drink? (2 points) Step 2: Testing Jerome’s brother’s approach Jerome’s brother told him to add one cup of water for every one cup of drink mix he add

Mr. and Mrs. Ramirez both have jobs for which 22% of their earnings are taken out of their paychecks for taxes. How much would they need to earn together per month before taxes to have enough income to cover all the expenses in their budget?

2 pts
Sammy wants to buy a new stereo priced at $439. He enters into an agreement to pay
$22 a month for 24 months. How much will the finance charge be for this purchase?
State your answer in terms of dollars rounded to the nearest cent (hundredth).

What does 6523 ÷ 65 equal?

write and equation on the line that passed through (0,-1) and is perpendicular to the line y =1/9x+2

Find the value of e.

Mrs. Cho has 24 students in her class. Some of her students are also in the play.

Explain why it is not possible for exactly 24% of the students in Mrs. Cho’s class to be in the play.​

1. You are interested in recycling behavior and whether it varies between urban and
rural residents. You know that the statewide recycling rate is 48.89%, and you
survey 140 rural residents and 310 urban residents to find out if they recycle.
180 urban residents respond that yes, they recycle. 130 do not. 40
rural residents recycle, and 100 do not.
a) Construct an expected frequencies crosstab, based on the sample size and the
statewide recycling rate.
b) Construct an observed frequencies crosstab, based on your actual data.
(NOTE for 1a and 16: Be sure to include both percentages and frequency values, in

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A ruler 30 cm long is broken into two parts in the ratio 8:7. How long
are the two parts?

hen Max was a puppy, he weighed 512 pounds. At his 1-year check-up with the vet, Max weighed 15.8 pounds.

How much weight did Max gain between the time he was a puppy and his 1-year check-up?

Enter your answer as a decimal or simplified mixed number in the box.

Solve the following system of equations graphically. Click on the graph until the correct solution of the system appears.

y = -3
x - y = 8

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Weverton Cliffs is a hiking trail in Maryland. This trail is 3 inches long on a map that has a scale of 7 ½ inches = 15 miles.

If Sarah hikes Weverton Cliffs from beginning to end and returns along the same trail, what is the total distance she hikes?

A. 3 miles
B. 6 miles
C. 12 miles
D. 18 miles

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Determine if the ordered pairs represent a function.

{(1,5), (2,7), (3,9), (4,7)}


(yes or no)​