5. Compile the Pro forma Income statement for the year 2020 using percent of sales method. (1 mark) Information for the year 2019 Marketable Securities 20,000.00 Accounts Receivable 60,000.00 Inventory 30,000.00 Number of shares outstanding 120,000.00 Other current assets 10,000.00 Propert, Plant and equipment 400,000.00 Machinery 80,000.00 Furniture 15,000.00 Vehicles 100,000.00 Paid in capital in excess of par value 600,000.00 Par value of stock 1.00 Notes payable 30,000.00 Accounts payable 30,000.00 Long term loan 89,000.00 Short term loan 20,000.00 Dividends 18,900,00 Cash 500,000.00 Accumulated depreciation 20,000.00 Sales 700,000.00 Depreciation expense 5,000.00 Selling expense 15,000.00 Cost of goods sold 450,000.00 Research and development expense 30,000.00 General and administrative expense 20,000.00 Interest expense 16,000.00 Tax rate 35% Utilities expense 30,000.00 Beginning balance of retained earnings 237,800.00 Information for the year 2020 Marketable Securities 10,000.00 Accounts Receivable 50,000.00 Inventory 10,000.00 Number of shares outstanding 100,000.00 Other current assets 40,000.00 Propert, Plant and equipment 381,000.00 Machinery 60,000.00 Furniture 70,000.00 Vehicles 120,000.00 Paid in capital in excess of par value 420,000.00 Par value of stock 1.00 Notes payable 30,000.00 Accounts payable 5,000.00 Long term loan 60,000.00 Short term loan 13,500.00 Dividends 16,000.00 Cash 300,000.00 Accumulated depreciation 25,000.00 Sales 900,000.00 Depreciation expense 5,000.00 Selling expense 20,000.00 Cost of goods sold 600,000.00 Research and development expense 30,000.00 General and administrative expense 40,000.00 Interest expense 10,000.00 Tax rate 35% Utilities expense 45,000.00 Beginning balance of retained earnings