22) Given the actual Income Statement for UMPI Inc. for 2019, the company anticipates sales growth of 3% in 2020 and 5% growth in sales for 2021. Prepare a pro forma income statement for 2020 & 2021. Note that depreciation & interest expense did not increase for 2020 & 2021. Also, the tax expense is calculated based on 30% of taxable income calculated on the pro forma income statement.

UMPI, Incorporated Income Statement

For the Period Ended December 31, 2019

Sales Revenue $280,000

COGS 140,000

SG&A 65,000

Depreciation 15,000

EBIT 60,000

Interest expense 10,000

Taxable Income 50,000

Tax rate 30%

Tax expense 15,000

Net Income $35,000