Shearer Corporation had sales this year of $1,000 million, and sales are expected to grow by 20 percent next year. Next year Shearer expects cost of goods sold to be 60 percent of sales, selling expenses to be $15 million per monthand depreciation to be $4 million per month. The company has $400 million of debt, which has an interest cost of 5% per year. Taxes are computed at 30 percent of pretax income. Fill in Shearers income statement for next year. Using this format:

Next Year

(In millions)

Sales

Cost of goods sold

Selling Expenses

Depreciation

Interest Expense ________

Pretax Income

Taxes ________

Net Income