Pro-forma Statements

The 2020 Income Statement and Balance Sheet for Longview Products, Inc. (LPI) are shown below.

Longview Products, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $ 6,000,000 Less: Cost of Goods Sold $ 3,300,000 Gross Profits $ 2,700,000 Less: Operating Expenses $ 1,000,000 Operating Profits (EBIT) $ 1,700,000 Less: Interest Expense $ 95,000 Net profits before taxes $ 1,605,000 Less: Taxes @ 21% '$ 337,050 Net profits after taxes $ 1,267,950 Less: Cash dividends $ 300,000 To retained earnings $ 967,950