The Most Recent Two Income Statements for Chinook Sailing School

The most recent two income statements for Chinook Sailing School are provided below:
-Refer to the information above. Assume that revenues are expected to grow by 10% in
2009. Also assume the following:
*Cost of goods sold will maintain its 2008 relationship to sales.
*The lease expense will remain the same as in the previous two years, and the other expense will be 12.5% of sales.
*Interest expense will increase to $20,000.
*The tax rate will be a flat 34%.
**Net working capital will remain at its 2008 percent of sales.
*Chinook will invest another $100,000 in plant and equipment.
*The depreciation expense will be 20% of the gross plant, property, and equipment.
*The only investing cash flow in 2009 will be the firm's planned capital expenditures.
There are no deferred taxes or other non-cash items to worry about. Round all
percentages to the nearest tenth of a percent.
a. Prepare a pro forma income statement for 2009 for Chinook Sailing School.
b.Forecast the 2009 project cash flow for Chinook Sailing School.