1. You have just completed the first year of operation for your business and have the following Information: (50 points) Net sales, $295,000 cost of goods sold are 55% of sales rent, $26,400 Interest, $ 5,000 utilities, $12,000 Insurance, $6,600 equipment expense, $4,000; and Forecast Info: Your forecast indicates that your sales will increase by 20 percent. Your rental agreement provides for a 5 percent increase per year. You read in the paper that utility costs in your area will increase by 8 percent next year. You just received a notice from your insurance company stating your quarterly premium is increasing to $1,800 beginning the first quarter of next year. Your equipment expense will change to $7,000 next year, and the amortization schedule on your current loan indicates that interest expense for next year will be $3,800. a. Using this data, and the table below, construct an actual income statement for this year and a pro forma income statement for next year (round to the nearest dollar). After you have constructed the pro forma income statement answer the questions below. Income Statement for Current and Next Year Actual this Year Pro-forma Next year b. By what percentage did your net income change? Show your work, round answer to 4 decimal places. Example 45.69% or 0.4569 C. What is your current net profit margin and your pro forma net profit margin? Show your work, round answer to 4 decimal places. Example 45.69% or 0.4569 usiness Finance - BUSG 1341- Homework - Assignment 6.2 Ratio: Numbers Used: Answer: Current Net Profit Margin: Pro-forma Net Profit Margin: d. In your business, assets and liabilities have historically varied with sales. Assets are normally 80 percent of sales, and liabilities are usually 55 percent of sales. You anticipate that you will have no owner payout of net profit. Using the percentage of sales method, determine if any additional financing is needed for your business next year. Show your work. Calculate using 4 decimal places Numbers Used