MyPal designs.. expects sales during 2013 to rise from the 2012 level to 55.0 million. Because of a scheduled loan payment, the interest expense in 2013 is expected to decrease to $425,000. The firm plans to increase its cash dividend payments during 2013 to $350,000. The company's year-end 2012 income statement follows MyPal Designs, Inc. Income Statement for the Year Ended December 31, 2012 Sales revenue $4,500,000 Less: Cost of goods sold 2,495,000 Gross profits 52.005.000 Less: Operating expenses 500,000 Operating profits $1.505,000 Less: Interest expense 450,000 1,055,000 Net profits before taxes Less: Taxes (rate = 40%) 422,000 Net profits after taxes 633.000 Less: Cash dividends 300,000 Retained earnings 333,000 Use the percent-of-sales method to for 2013 pro forma income statement and find Operating profits Net Profits after taxes and Retained earnings