What is needed in order to complete the pro forma income statement from EBIT to net income?
A)Balance sheet
B)Debt schedule
C)CIM
D)LIBOR curve

Question

Quizplus · Accepted Answer

A debt schedule is needed to determine the interest expense, which is necessary to calculate net income from EBIT (Earnings Before Interest and Taxes). Interest expense is subtracted from EBIT to get EBT (Earnings Before Taxes), and then taxes are subtracted to arrive at net income.

What Is Needed in Order to Complete the Pro Forma