Your pro forma income statement shows sales of $ 1 comma 000 comma 000, cost of goods sold as $ 500 comma 000, depreciation expense of $ 100 comma 000, and taxes of $ 160 comma 000 due to a tax rate of 40 %. What are your pro forma earnings? What is your pro forma free cash flow? Complete the pro forma income statement below: (Round to the nearest dollar.) Sales $ 1000000 Cost of Goods Sold $ (500000) Gross Profit $ 500000 Depreciation $ (100000) EBIT $ 400000 Taxes (40%) $ (160000) Earnings $ 240000 The pro forma free cash flow will be $

The correct answer for proforma earning is $240,000 and proforma free cash flow is $340,000.

Explanation:

According to the scenario, the computation of the given data are as follows

Sales  = $1,000,000

Cost of goods sold  (Less) = $500,000

Gross Profit  = $500,000

Depreciation (Less) =  $100,000

EBIT  = $400,000

Taxes [40% × $400,000]  = $160,000

Proforma Earnings = Sales - Cost of goods sold  -  Depreciation - Taxes

= $1,000,000  - $500,000 - $100,000 - $160,000 = $240,000

And we can calculate the proforma free cash flow by using following method:

Proforma Free cash flow = Proforma earning + Depreciation Amount

By putting the value, we get

Proforma free cash flow = $240,000 + $100,000 = $340,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'