1. Construct a pro forma income statement for the first year and second year for

1. Construct a pro forma income statement for the first year and second year for the following assumptions: Units of Sales in Year 1: 110000Price per Unit: $11Variable cost per unit: 30%Fixed Costs: $125000Income taxes: 15%Interest Expense: $200000In year 2 Price per unit increases to $11.50 and unit of sales increases by 5% all other assumptions remain the same.2. Calculate a table of interest rates for 5 years based on the following information: The pure interest rate is 2% Inflation expectations for year 1 = 3% year 2 =4% years 3-5 =5%The default risk is .1% for year one and increases by .1% over each yearLiquidity premium is 0 for year 1 and increases by .2% each yearMaturity risk premium is 0 for years 1 and 2 and .3% for years 3-53. Calculate the sustainable growth based on the following information:* earning after taxes = $35000* equity = $100000* d=22.4%4. Future value of single sum problem You put $2000 in an investment account today which will earn 8% over the next 14 years what is the future value? 5. Future value of annuity problem You deposit $10000 into a retirement account at the end of the next 10 years earning 9% interest what is the future value of your retirement after 10 years?

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