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Proforma Income Statement Analysis

The proforma income statement outlines key financial metrics for a company, including a cost margin of 60%, an overhead rate of 37.20% of sales, an effective tax rate of 20%, and a dividend payout rate of 10%. The retained earnings projected for 2026 are estimated to be 177.6. The document also provides historical sales data and growth rates from 2019 to 2026.

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5 views4 pages

Proforma Income Statement Analysis

The proforma income statement outlines key financial metrics for a company, including a cost margin of 60%, an overhead rate of 37.20% of sales, an effective tax rate of 20%, and a dividend payout rate of 10%. The retained earnings projected for 2026 are estimated to be 177.6. The document also provides historical sales data and growth rates from 2019 to 2026.

Uploaded by

wongshirley552
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

PROFORMA INCOME STATEMENT

What is this company's cost margin? 4%


What is the firm's overhead rate as a % of sales?
What is this firm's effective tax rate?
What is this firm's dividend payout rate?
What is this firm's retained earnings in 2026?

Income statement 2019 2020 2021


Sales 551.6 573.7 596.6
COGS -331 -344.2 -358
Gross profit 220.6 229.5 238.7
Sales, general & administrative -33.1 -34.4 -35.8
EBIT 187.5 195.1 202.9
Income tax provision -37.5 -39 -40.6
Net income 150 156 162.3
Dividend -15 -15.6 -16.2
Retained earnings 135 140.4 146.1

Sales growth y/y% 4% 4%


COGS as % of sales
SG&A as % of sales
Effective tax rate (% of EBIT)
Dividend Payout as % of net income
2022 2023 2024 2025 2026

4% 4% 4% 4% 4%
PROFORMA INCOME STATEMENT

What is this company's cost margin? 60%


What is the firm's overhead rate as a % of sales? 37.20%
What is this firm's effective tax rate? 20%
What is this firm's dividend payout rate? 10%
What is this firm's retained earnings in 2026? 177.6

Income statement 2019 2020 2021


Sales 551.6 573.7 596.6
COGS -331 -344.2 -358
Gross profit 220.6 229.5 238.7
Sales, general & administrative -33.1 -34.4 -35.8
EBIT 187.5 195.1 202.9
Income tax provision -37.5 -39 -40.6
Net income 150 156 162.3
Dividend -15 -15.6 -16.2
Retained earnings 135 140.4 146.1

Sales growth y/y% 4% 4%


COGS as % of sales -60% -60% -60%
SG&A as % of sales -6% -6% -6%
Effective tax rate (% of EBIT) -20% -20% -20%
Dividend Payout as % of net income -10% -10% -10%
2022 2023 2024 2025 2026
620.41 645.18 670.93 697.71 725.56
-372.29 -387.1505 -402.6041 -418.6746 -435.3866
248.12 258.03 268.33 279.04 290.18
-37.229 -38.71505 -40.26041 -41.86746 -43.53866
210.90 219.31 228.07 237.17 246.64
-42.2 -43.9 -45.6 -47.5 -49.4
168.70 175.43 182.43 189.71 197.29
-16.8 -17.5 -18.2 -18.9 -19.7
151.9 157.9 164.2 170.8 177.6

4% 4% 4% 4% 4%
-60% -60% -60% -60% -60%
-6% -6% -6% -6% -6%
-20% -20% -20% -20% -20%
-10% -10% -10% -10% -10%

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