Allen Products, Inc. wants to project their earnings and income for 2020. Allen's income statement for the most recent year follows: Allen Products Inc. Income Statement For the Year Ended December 31, 2019 Sales Revenue $97,500 Less: Cost of Goods Sold 41,875 Gross Profits (Margin) $55,625 Less: Operating Expenses 24,375 Operating Profits (Margin) (EBIT) $31,250 Less: Interest Expense 3,000 Net profits before tax (EBT) $28,250 Less: Taxes (rate = 35%) 9,888 Net Profits after taxes (EAT, net income, net $18,362 margin) 1. Use the percent of sales method, the income statement for December 31, 2019, and the sales revenue estimate of $107,250 to develop a pro forma income statement for the coming year. Allen Products plans to pay a 50% dividend in 2020, which is the same payout as 2019. 2020 Calculations Allen Products Inc. Income Statement Sales Revenue Less: Cost of Goods Sold Gross Profits (Margin) Less: Operating Expenses Operating profits (Margin) (EBIT) Less: Interest Expense Net profits before tax (EBT) Less: Taxes (rate = 35%) Net Profits after taxes (EAT, net income, net margin) Less: Dividends To Retained Earnings