Aveena Company is a small firm that produces a range of low-priced small to medium-sized data storage devices for a well-known online seller of computer equipment. Aveena's Income Statement as of 12/31/2018 is shown here: Aveena Company Income Statement Sales (in $000) Cost of Goods Sold 2018 $2,567 $1,711 Gross Profit (Margin) $856 Less: Operating Expenses Selling expense $108 General $ Admin exp $187 Lease expense $35 Depreciation expense $223 Total Operating Expenses $553 Operating Income (EBIT) $303 Less: Interest expense $91 Income before taxes (EBT) $212 Less: Taxes $64 Net Income $148 $1.95 $0.97 Earnings per share (EPS) Dividends per shapre (DPS) Aveena is in the early stages of preparing its 2019 Pro Forma Income Statement and is considering an expansion in the range of products it carries which will require the firm to secure additional capital financing to support this expansion. The Chief Operating Officer (COO) has asked you, as Aveena's financial analyst intern, to prepare a projection for the 2019 I/S based on the 2019 projections listed below. The firm is considering raising the additional financing either through additional long term debt (option A) or selling additional common stock that has been authorized but not issued (option B). One of the items the COO wishes to investigate is the firms Cost of Good Sold. Cost of Goods sold includes all the direct and indirect costs associated with the manufacture of the firm's product line. These costs include all raw materials, labor, and manufacturing overhead that is directly associated with product manufacture. Aveena's product line is currently manufactured in a plant in Southeast Asia, in order to minimize production cost and leverage the technology manufacturing and assembly expertise available in SE Asia. The COO has stated that he believes Aveena's primary market competition is currently operating at a COGS rate of 63%. Assignment: 1. Prepare a pro forma 2019 Income Statement (Option A) based on the following projections: a. A projected sales increase of 20% based on the product line expansion b. 2019 expense projections: