"Question 4 Allocated Mark = 10 marks Page 5 of 7 Comparative income statements for Busaiteen Co. are shown below ($ million). Busaiten Co. INCOME STATEMENT Net sales FY 2020 20,092 FY 2019 19,889 6,044 6,204 13,685 14,048 7,893 9,221 803 773 Cost of goods Gross profit Selling general & administrative expense Depreciation & amortization expense Interest expense Income before tax Income tax expense Net income Outstanding shares 308 292 3,399 5,660 1.691 3.969 1.222 2.177 3,491 3,481 SELECTED RATIOS 1.02% 59.92% Sales growth Gross Profit Margin Selling General & Administrative Exp/Sales Depreciation (depn exp/pryr PPE gross) INT (int/pry LTD) Tax (Inc Tax / Pre-tax inc) 39.28% 12.14% 5.45% 29,88% a. Based on the aforementioned ratios, prepare the pro-forma income statement of Busaiten Co. for FY 20211 (5 marks) b. Discuss the concept of prospective analysis in financial statement analysis process (2 marks) c. Explain the importance of prospective analysis