Based on the income statements created in Questions 1, create a forecasted income statement on the worksheet Q2_Pro-forma IS for 2022.

Assume that: 1) Each income statement item remains in the same proportion as in 2021.

2) The forecasted sales for 2022 are $9,000,000.

3) Fixed expenses and interest expense will not change for 2022.

4) Changes in depreciation expenses are proportional to changes in sales for 2022.

5) The tax rate and the number of shares outstanding for 2022 are the same as those in 2021

Income statement created in Question one:

\begin{tabular}{|r|l|r|r|} \hline 2 & \multicolumn{2}{|c|}{ Income Statement } \\ \hline 3 & For the Year Ended Dec. 31, 2021 (\$ in 000's) \\ \hline 4 & & 2021 & 2020 \\ \hline 5 & Sales & 8,050.00 & 6,500.00 \\ \hline 6 & Cost of Goods Sold & 5,350.00 & 4,250.00 \\ \hline 7 & Gross Profit & 2,700.00 & 2,250.00 \\ \hline 8 & Depreciation & 120.00 & 100.00 \\ \hline 9 & Selling and G\&A Expense & 820.00 & 730.00 \\ \hline 10 & Fixed Expense & 200.00 & 200.00 \\ \hline 11 & EBIT & 1,560.00 & 1,220.00 \\ \hline 12 & Intereset Expense & 350.00 & 300.00 \\ \hline 13 & Earnings Before Taxes & 1,210.00 & 920.00 \\ \hline 14 & Taxes & 484.00 & 368.00 \\ \hline 15 & Net income & 726.00 & 552.00 \\ \hline 16 & & & \\ \hline 17 & Notes: & & \\ \hline 18 & Tax Rate & 30.00% & 40.00% \\ \hline 19 & Shares Outstanding & 100,000 & 80,000 \\ \hline 20 & Earnings per share & $7.26 & $6.90 \\ \hline 21 & Dividends per share & $3.63 & \\ \hline 22 & Addition to RE per share & $3.63 & $6.90 \\ \hline \end{tabular} \begin{tabular}{|r|l|r|r|} \hline 2 & \multicolumn{2}{|c|}{ Income Statement } \\ \hline 3 & For the Year Ended Dec. 31, 2021 (\$ in 000's) \\ \hline 4 & & 2021 & 2020 \\ \hline 5 & Sales & 8,050.00 & 6,500.00 \\ \hline 6 & Cost of Goods Sold & 5,350.00 & 4,250.00 \\ \hline 7 & Gross Profit & 2,700.00 & 2,250.00 \\ \hline 8 & Depreciation & 120.00 & 100.00 \\ \hline 9 & Selling and G\&A Expense & 820.00 & 730.00 \\ \hline 10 & Fixed Expense & 200.00 & 200.00 \\ \hline 11 & EBIT & 1,560.00 & 1,220.00 \\ \hline 12 & Intereset Expense & 350.00 & 300.00 \\ \hline 13 & Earnings Before Taxes & 1,210.00 & 920.00 \\ \hline 14 & Taxes & 484.00 & 368.00 \\ \hline 15 & Net income & 726.00 & 552.00 \\ \hline 16 & & & \\ \hline 17 & Notes: & & \\ \hline 18 & Tax Rate & 30.00% & 40.00% \\ \hline 19 & Shares Outstanding & 100,000 & 80,000 \\ \hline 20 & Earnings per share & $7.26 & $6.90 \\ \hline 21 & Dividends per share & $3.63 & \\ \hline 22 & Addition to RE per share & $3.63 & $6.90 \\ \hline \end{tabular}