4. The Black Co. is trying to plan for the next year. Their sales forecast for the next year is $3,500,000. Using the following current income statement, prepare the proforma income statement for the next year. Pay attention to the separation of expenses into fixed and variable components. Income Statement The Black Co. Sales revenue $3,028,500 Less: Cost of goods sold Fixed costs 1,350,000 Variable costs 1,260,600 Gross profits $ 417,900 Less: Operating expenses Fixed expenses 4,500 Variable expenses 85,840 Operating profits $ 327,560 Less: Interest expense 82,150 Net profits before taxes $ 245,410 Less: Taxes (40%) 98,164 Net profits after taxes $ 147,246 Less: Dividend 50,000 Increased retained earnings $ 97,246