Common-Size and Forecast Income Statements Income statements for The Schism, Inc. (the Company), follow ($ millions). THE SCHISM, INC. Consolidated Statement of Earnings Fiscal Year Ended Feb. 1, 2020 Feb. 2, 2019 Net sales $32,994 $33,391 Cost of goods sold and occupancy expenses 20,500 20,516 Gross profit 12,494 12,875 Operating expenses 11,273 10,058 Operating income 1,221 2,817 Interest expense 152 146 Interest income (60) (66) Income before income taxes 1,129 2,737 Income taxes 354 638 Net income $775 $2,099 Common-size Income Statements Income Statement Forecast b. Prepare an income statement forecast for the fiscal year 2020 (ending January 30, 2021), based on the following assumptions: Net sales total $28,195 million. Cost of goods sold and occupancy expenses are 62% of sales. Operating expenses total 35% of sales. Interest income and interest expense are unchanged from the 2019 (ending February 2, 2019) amounts. The Gap's effective tax rate on income before taxes is 25% in 2020. Note: Round your answers to the nearest million dollars. Use a negative sign to indicate interest income. THE SCHISM, INC. Forecast of Consolidated Statement of Earnings Fiscal Year Ended Net sales Cost of goods sold and occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net income Check Jan. 30, 2021 $ 114,353 x 70,898.86 x 43,454.14 x 40,023.55 x 3,430.59 x 584 x (264) x 3,110.59 x 777.6475 x $ 2,333