Please, complete parts a, b, c, and d. (This is all of the information given from the homework assignment. What else is missing?)

Pro forma income statement-Scenario analysis Allen Products, Inc., wants to do a scenario analysis for the coming year. The pessimistic prediction for sales is $899,000; the most likely amount of sales is $1,119,000; and the optimistic prediction is $1,287,000. Allen's income statemer for the most recent year is shown here a. Use the percent-of-sales method, the income statement for December 31, 2019, and the sales revenue estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming year. b. Explain how this method could result in overstatement of profits for the pessimistic case and understatement of profits for the most likely and optimistic cases. c. Restate the pro forma income statements prepared in part a. to incorporate the following assumptions about the 2019 costs: $233,279 of the cost of goods sold is fixed; the rest is variable. $169,784 of the operating expenses is fixed; the rest is variable. All the interest expense is fixed. (Please see: 3.) d. Compare your findings in part c. to your findings in part a. Do your observations confirm your explanation in part b? a. Use the percent-of-sales method, the income statement for December 31, 2019, and the sales revenue estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming year. Complete the pro forma income statement for the year ending December 31, 2020 that is shown below (pessimistic scenario): (Round the percentage of sales to one decimal place and the pro forma income statement accounts to the nearest dollar.) Pro Forma Income Statement Allen Products, Inc. Data Table -X x Data Table for the Year Ended December 31, 2020 Pessimistic Sales $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $ % $ $ % Less: Cost of goods sold Gross profits Less: Operating expense Operating profits Less: Interest expense Net profits before taxes Taxes (25%) $ $ % Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $938,300 Less: cost of good sold 404,407 Gross profits $533,893 Less: operating expenses 228,007 Operating profits $305,886 Less: interest expense 31,902 Net profit before taxes $273,984 Less: taxes (rate 25%) 68,496 Net profits after taxes $205,488 $ Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $938,300 Less: cost of good sold Fixed 233,279 Variable 171,128 Gross profits $533,893 Less: operating expenses Fixed 169,784 Variable 58,223 Operating profits $305,886 Less: interest expense 31,902 Net profit before taxes $273,984 Less: taxes (rate 25%) 68,496 Net profits after taxes $205,488 $ Net profits after taxes $ Enter any number in the edit fields and then click Check Answer. Print Done 7 parts ck Answer remaining Pro forma income statement-Scenario analysis Allen Products, Inc., wants to do a scenario analysis for the coming year. The pessimistic prediction for sales is $899,000; the most likely amount of sales is $1,119,000; and the optimistic prediction is $1,287,000. Allen's income statemer for the most recent year is shown here a. Use the percent-of-sales method, the income statement for December 31, 2019, and the sales revenue estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming year. b. Explain how this method could result in overstatement of profits for the pessimistic case and understatement of profits for the most likely and optimistic cases. c. Restate the pro forma income statements prepared in part a. to incorporate the following assumptions about the 2019 costs: $233,279 of the cost of goods sold is fixed; the rest is variable. $169,784 of the operating expenses is fixed; the rest is variable. All the interest expense is fixed. (Please see: 3.) d. Compare your findings in part c. to your findings in part a. Do your observations confirm your explanation in part b? a. Use the percent-of-sales method, the income statement for December 31, 2019, and the sales revenue estimates to develop pessimistic, most likely, and optimistic pro forma income statements for the coming year. Complete the pro forma income statement for the year ending December 31, 2020 that is shown below (pessimistic scenario): (Round the percentage of sales to one decimal place and the pro forma income statement accounts to the nearest dollar.) Pro Forma Income Statement Allen Products, Inc. Data Table -X x Data Table for the Year Ended December 31, 2020 Pessimistic Sales $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $ % $ $ % Less: Cost of goods sold Gross profits Less: Operating expense Operating profits Less: Interest expense Net profits before taxes Taxes (25%) $ $ % Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $938,300 Less: cost of good sold 404,407 Gross profits $533,893 Less: operating expenses 228,007 Operating profits $305,886 Less: interest expense 31,902 Net profit before taxes $273,984 Less: taxes (rate 25%) 68,496 Net profits after taxes $205,488 $ Allen Products, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $938,300 Less: cost of good sold Fixed 233,279 Variable 171,128 Gross profits $533,893 Less: operating expenses Fixed 169,784 Variable 58,223 Operating profits $305,886 Less: interest expense 31,902 Net profit before taxes $273,984 Less: taxes (rate 25%) 68,496 Net profits after taxes $205,488 $ Net profits after taxes $ Enter any number in the edit fields and then click Check Answer. Print Done 7 parts ck Answer remaining