Problem 82: Provincial Imports, Inc. has assembled a past (2019) Income Statement and financial projections for use in preparing financial plans for the coming year (2020) Additional Data: 1) Sales are projected to increase by 20% 2) Interest expense will increase to $285,000. 3) The company has a 21% tax rate. 4) The company will pay cash dividends to preferred stockholders of $183,000. 5) The company will pay cash dividends to common stockholders amounting to 20% of earnings available for common stockholders Required: Prepare the 2020 Pro Forma Income Statement using the fixed-cost-variable-cost method 2020 Pro Forma $6,000,000 $1,200,000 Sales Revenue Cost of Goods Sold (Fixed) Cost of Goods Sold (Variable) Gross Profit Operating Expenses (Fixed) Operating Expenses (Variable) Earnings before interest & Taxes Interest Expense Net Profits before Taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2019 Actual 5,000,000 1,000,000 1,750,000 2,250,000 250,000 700,000 1,300,000 200,000 1,100,000 231,000 869,000 132,000 132,000 605,000 Taxes Net Profits after Taxes Cash Dividends (Preferred) Cash Dividends (Common) To Retained Earnings