Company P is considering investing in Company S, but is unsure about what level of ownership should be undertaken. Company P and Company S have the following reported incomes;

Company P

Company S

Sales

$1,000,000

$500,000

-Cost of Goods Sold

300,000

200,000

Gross Profit

$700,000

$300,000

-Selling and Administrative Expenses

220,000

100,000

Net Income

$480,000

$200,000

Company S paid $20,000 in cash dividends to its investors. Make a pro forma income statement for Company P that compares income under 15%, 40%, 90%, and 100% ownership levels.