8. Use the percent of sales method to prepare a pro forma income statement for Calico Enterprise. Projected sales for next year equal US$20,000. Cost of goods sold is expected to be 70 % of sales, administrative expense equals US$5000, and depreciation expense is US$7000. Interest expense equals US$5,000 and income is taxed at a rate of 40 %. The firm plans to spend US$1,000 during the year to renovate its office facility and will retire US$7,000 in notes payable. Finally, selling expense equals 5 % of sales.