Balance Sheet Income Statement Ashmont Cycles Balance Sheet As of December 31, 2019 and 2020 2019 2020 8.000 2 500 67.000 1.500 500 79,500 29,000 12.460 26,600 106,100 9,000 7.000 70,000 4.100 700 90,800 49,000 14.800 44 200 135,000 Assets Cash Accounts receivable Inventory Prepaid expenses Other current assets Total current assets Property, plant, and equipment Accumulated depreciation Nel property, plant, and equipment Total Assets Liabilities Accounts payable Line of credit Current portion of long-term debt Accrued expenses Total Current Liabilities Long-term debt Total Liabilities Owner's Equity Contributed capital Retained earnings Total Owner's Equity 3.000 10,000 6.000 1.100 20.100 16.000 36,100 4.000 10.000 5,000 2 000 21.000 14,000 35,000 50.000 20.000 70,000 60,000 40.000 100,000 Ashmont Cycles Income Statement For the year ended December 31, 2019 and 2020 2019 2020 $177,000 190.000 87,000 $300,000 1100.000) 200,000 Sales Cost of goods sold Gross Profit Operating Expense Selling general and administrative expenses Utilities expense Rent expense Depreciation and amortization Total operating expenses Operating Income Interest expense Income before Income Taxes Income taxes (35%) Net Income (20.000) (4.000) (10,000 (2.400 36 400 50.600 11.200 49,400 (17 290) $32.110 (S0.000) (3.500) (14,000) 2.400) (59 900) 130,100 (1.200 128.900 (45,115 $83,785 4. Ashmont Cycles Corporation estimates its sales for the 2021 financial year will be $500,000. No new borrowing was obtained and therefore, the interest expense will remain unchanged $1,200 during 2021. Compile the Pro forma Income statement for Ashmont Cycles Corporation for the year 2021 using percent of sales method. ( 2marks)