Construct a pro forma income statement for the first and second year in the given case.
Construct a pro forma income statement for the first year and second year for the following assumptions: -Units of Sales in Year 1: 110,000 -Price per Unit: $11 -Variable cost per unit: 25% -Fixed Costs: $129,000 -Income taxes: 20% -Interest Expense: $170,000 In year 2, Price per unit increases to $13.50, and unit of sa