Apply the percent of sales method to prepare the 2020 projected financial statements. Provide assumptions such as percentage increase in sales, specific accounts to remain unchanged (fixed values) and others. Please show complete solutions PROJECTED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 (IN PESOS) AMOUNT PERCENT OF SALES Amount (solution) % of sales solution SALES (NET) COST OF GOODS SOLD GROSS PROFIT LESS: OPERATING EXPENSES SALARIES GASOLINE/TRAVEL UTILITIES DEPRECIATION TOTAL OPERATING EXPENSES INCOME (LOSS) FROM OPERATIONS LESS: INTEREST INCOME BEFORE TAXES LESS: TAXES (30%) constant NET INCOME AFTER TAXES SALE OF GOODS AND SERVICES (Notes 24 and 34) COST OF SALES (Note 24) GROSS PROFIT Selling and distribution costs (Note 25) General and administrative expenses (Note 26) OPERATING INCOME Finance costs (Note 30) Net foreign exchange gains (losses) Finance revenue (Note 29) Equity in net losses of joint ventures (Note 16) Market valuation gain (loss) on financial assets and liabilities at fair value through profit or loss - net (Note 8) Provision for credit and impairment losses (Notes 10, 11 and 15) Other income (Loss) - net (Notes 13. 16. 17 and 19) INCOME BEFORE INCOME TAX PROVISION FOR INCOME TAX (Note 32) NET INCOME Years Ended December 31 2019 2018 2017 P134.174,527,579 P127,769,949,329 P125,007,824,013 93,861,929,762 90,332,569.341 85,693,355,234 40,312,597,817 37,437,379.988 39,314,468,779 (19,827,312,084) (18,719,558,853) (19.250.876,212) (5,473,328,075) (5,337,208,345) (5.111.425,807) 15,011,957,658 13,380,612,790 14.952,166,760 (1,669,869,069) (1,661,700,393) (1.427,329,826) (557,668,647) (174,658,640) 154,190,672 327,611,502 359,281,191 225,582,853 (158,602,482) (132,407,965) (280,533,323) (5.253.797) (35,424.289) 71,016,151 (2.211.403) (45.001,536) (21.423,202) (1.049,552.732) (145,821.109) 276,737.549 11,896,411,630 11,544,880,049 13.950,407,634 1.781.727.853 2,082,093.827 2.797,486,301 P10,114,683,777 19,462,786,222 P11,152,921,333 Apply the percent of sales method to prepare the 2020 projected financial statements. Provide assumptions such as percentage increase in sales, specific accounts to remain unchanged (fixed values) and others. Please show complete solutions PROJECTED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 (IN PESOS) AMOUNT PERCENT OF SALES Amount (solution) % of sales solution SALES (NET) COST OF GOODS SOLD GROSS PROFIT LESS: OPERATING EXPENSES SALARIES GASOLINE/TRAVEL UTILITIES DEPRECIATION TOTAL OPERATING EXPENSES INCOME (LOSS) FROM OPERATIONS LESS: INTEREST INCOME BEFORE TAXES LESS: TAXES (30%) constant NET INCOME AFTER TAXES SALE OF GOODS AND SERVICES (Notes 24 and 34) COST OF SALES (Note 24) GROSS PROFIT Selling and distribution costs (Note 25) General and administrative expenses (Note 26) OPERATING INCOME Finance costs (Note 30) Net foreign exchange gains (losses) Finance revenue (Note 29) Equity in net losses of joint ventures (Note 16) Market valuation gain (loss) on financial assets and liabilities at fair value through profit or loss - net (Note 8) Provision for credit and impairment losses (Notes 10, 11 and 15) Other income (Loss) - net (Notes 13. 16. 17 and 19) INCOME BEFORE INCOME TAX PROVISION FOR INCOME TAX (Note 32) NET INCOME Years Ended December 31 2019 2018 2017 P134.174,527,579 P127,769,949,329 P125,007,824,013 93,861,929,762 90,332,569.341 85,693,355,234 40,312,597,817 37,437,379.988 39,314,468,779 (19,827,312,084) (18,719,558,853) (19.250.876,212) (5,473,328,075) (5,337,208,345) (5.111.425,807) 15,011,957,658 13,380,612,790 14.952,166,760 (1,669,869,069) (1,661,700,393) (1.427,329,826) (557,668,647) (174,658,640) 154,190,672 327,611,502 359,281,191 225,582,853 (158,602,482) (132,407,965) (280,533,323) (5.253.797) (35,424.289) 71,016,151 (2.211.403) (45.001,536) (21.423,202) (1.049,552.732) (145,821.109) 276,737.549 11,896,411,630 11,544,880,049 13.950,407,634 1.781.727.853 2,082,093.827 2.797,486,301 P10,114,683,777 19,462,786,222 P11,152,921,333