Integrative-Pro forma statements Provincial imports, Inc., has assembled past (2019) financial statements (income statement and balance sheet E EBB) and financial projections for use in preparing financial plans for the coming year (2020). Information related to financial projections for the year 2020 is as follows: (1) Projoctod sales are $6,000,000. (2) Cost of goods sold in 2019 includes $1.000,000 in fixed costs. (3) Operating expense in 2019 includes $250,000 in fixed costs. (4) Interest expense will temain 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 wil remain unchanged. (8) Accounts recelvable. accounts payable, and other current liabelities will change in direct response to the change in sales. (9) A new computer system costing $356,000 will be purchased during the yeat, Total depreciation expense for the year wil be $110.000. (10) The tax rate will romain at 40%. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the foxed cost data given to improve the accuracy of the percent-of-sales method. b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the tetained earnings account. c. Analyze these statements, and discuss the resutting extemal financing required. a. Prepare a pro forma income statement for the yeat ended December 31,2020 , using the fixed cost data given to improve the accuracy of the percent-ot-sales method. Complete the pro forma income statement for the year ended December 31,2020 below: (Round to the nearest dollar.) Iework Integrative Pro forma statements Provincial Imports, Inc., has Sales Less: Cost of goods sold Gross profits Loss: Operating expenses Operating profits Less: Interest expense 4 (book) Net profits before taxes Less. Taxes (rate =40% ) Net profits atter taxes Less: Cash dividends (40\%) To Retained earnings Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (Click on the icon here Integrative-Pro forma statements Provincial imports, Inc., has assembled past (2019) financial statements (income statement and balance sheet E EBB) and financial projections for use in preparing financial plans for the coming year (2020). Information related to financial projections for the year 2020 is as follows: (1) Projoctod sales are $6,000,000. (2) Cost of goods sold in 2019 includes $1.000,000 in fixed costs. (3) Operating expense in 2019 includes $250,000 in fixed costs. (4) Interest expense will temain 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 wil remain unchanged. (8) Accounts recelvable. accounts payable, and other current liabelities will change in direct response to the change in sales. (9) A new computer system costing $356,000 will be purchased during the yeat, Total depreciation expense for the year wil be $110.000. (10) The tax rate will romain at 40%. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the foxed cost data given to improve the accuracy of the percent-of-sales method. b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the tetained earnings account. c. Analyze these statements, and discuss the resutting extemal financing required. a. Prepare a pro forma income statement for the yeat ended December 31,2020 , using the fixed cost data given to improve the accuracy of the percent-ot-sales method. Complete the pro forma income statement for the year ended December 31,2020 below: (Round to the nearest dollar.) Iework Integrative Pro forma statements Provincial Imports, Inc., has Sales Less: Cost of goods sold Gross profits Loss: Operating expenses Operating profits Less: Interest expense 4 (book) Net profits before taxes Less. Taxes (rate =40% ) Net profits atter taxes Less: Cash dividends (40\%) To Retained earnings Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (Click on the icon here