Given the following 2019 income statement and predictions for 2020, answer the following questions:

 

Show calculations. Given the following 2019 income statement and predictions for 2020, answer the following questions: Sales COGS Gross profit Fixed expenses Operating income Tax rate 30% Net income $ 10,000 $4,500 $5,500 $1,500 $ 4,000 $ 1,200 $ 2,800 Predicted 2020 sales increase: 20% Predicted 2020 fixed expense increase: 6% COGS varies proportionally to change in sales 1. Calculate the predicted 2020 net income (6 pts) 2. Based on the pro forma prediction, what is the % change in net income from 2019 to 2020? (2 pts)