Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income statement and balance sheet E) and financial projections for use in preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $5.995,000. (2) Cost of goods sold last year includes $1,004,000 in fixed costs. (3) Operating expense last year includes $252.000 in fixed costs. (4) Interest expense will remain unchanged. (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double. (7) Marketable securities, notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing $357,000 will be purchased during the year. Total depreciation expense for the year will be $105,000. (10) The tax rate will remain at 40% a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales method. b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales method. Complete the pro forma income statement for next year below: (Round to the nearest dollar.) Pro Forma Income Statement Provincial Imports, Inc. for Next Year (percent-of-sales method) s Sales Less: Cost of goods sold Gross profits s Less: Operating expenses Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Income Statement for the Year Just Ended Sales revenue $4,99 1,000 Less: Cost of goods sold 2.746.000 Gross profits $2,245.000 Less: Operating expenses 858.000 Operating profits $1,387,000 Less: Interest expense 192.000 Net profits before taxes $1,195.000 Less: Taxes (rate=40%) 478.000 Net profits after taxes $717.000 Less: Cash dividends 286.800 To retained earnings $430,200 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet for the Year Just Ended Assets Liabilities and Stockholders' Equity Cash $207.000 Accounts payable $707.000 Marketable securities 217.000 Taxes payable 95,000 Accounts receivable 631,000 Notes payable 204,000 Inventories 490,000 Other current liabilities 5,000 Total current assets $1,545,000 Total current liabilities $1,011,000 Net fixed assets 1,402,000 Long-term debt 483,000 Common stock 78,000 Cat-issa inar 1 277 000 Print Done