Suppose that you have the following 2017 income statement of a company and you need to use the percent-of-sales method to estimate the 2018 income statement. Assume that taxes are fixed at 40% of net-profits-before-taxes and that the company will have an increase of 20% of sales revenue in 2018, what will net-profits-after-taxes be for 2018?

	2017 Income Statement
Sales Revenue	100,000
- Cost of Goods Sold	81,000
Gross Profits	19,000
- Depreciation Expense	7200
Operating Profits	11,800
- Interest Expense	500
Net Profits before Taxes	11,300
- Taxes (40%)	4520
Net Profits after Taxes	6780