Intro Current sales are $40,000 and total assets are $130,000. The company operates at 93% of capacity and sales are projected to grow by 33%. Part 1 Attempt 1/15 for 10 pts. To what level can sales grow before any new assets are required? 0+ decimals Submit Part 2 - Attempt 1/15 for 10 pts. What additional investment in assets is required for sales to grow by 33%? 0+ decimals Submit Income statement for 2020 Line item Amount ($) Sales 540,000 - COGS 216,000 = Gross profit 324,000 - SG&A 108,000 - Depreciation 54,000 = Operating profit 162,000 - Interest 25,000 = Taxable income 137,000 - Taxes (28%) 38,360 = Net income 98,640 Sales are expected to increase to $648,000 in 2021, while interest expenses and the average tax rate are expected to stay constant. Part 1 18 Attempt 2/15 for 8 pts. Prepare a pro forma income statement for 2021 using the percent-of-sales method. What is the expected net income? We also know the break-down into fixed and variable costs for 2020: Fixed costs Variable costs COGS 54,000 162,000 SG&A 81,000 27,000 Prepare a pro forma income statement for 2021 using the percent-of-sales method and distinguish between fixed and variable costs. What is the expected net income