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 $97,500 41,875 $55,625 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 24,375 $31,250 3,000 $28,250 9,888 $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. Allen Products Inc. Income Statement 2020 Calculations 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