A proposed new investment has projected sales of $680,000. Variable costs are 65 percent of sales, and fixed costs are $157,000; depreciation is $58,000. Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected net income? (Input all amounts as positive values.)

A proposed new investment has projected sales of $680,000. Variable costs are 65 percent of sales, and fixed costs are $157,000; depreciation is $58,000. Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected net income? (Input all amounts as positive values.)

Sales	$
Variable costs
Fixed costs
Depreciation
EBT	$
Taxes
Net income	$

Explanation:

Taxes (34%) = $7,820