Based on intense market research, the company expects sales to increase +15% (best case), +10% (most likely), or +5% (worst case). Using the % of sales method, and assuming only COGS and SG&A increase, create an income statement for the best, most likely, and worst-case scenarios.

Note, the interviewer sees a lot of potential in you, and shares a friendly reminder to exclude depreciation when growing other variable Operating Expense in each of the 3 scenarios, as it will not grow with sales like the rest of the expense base (i.e. depreciation should remain unchanged!)

Income Statement	BASE CASE	Best Case	Most Likely	Worst Case
Sales	$ 9.000.000
Cost of Goods Sold	$ (4.500.000)
Gross Profit	$ 4.500.000
Operating Expenses (including $500K depreciation)	$ (3.500.000)
Operating Profit	$ 1.000.000
Interest Expense	$ (450.000)
Earnings Before Taxes	$ 550.000
Income Taxes (21%)	$ (115.500)
Net Income	$ 434.500