The amount that will transfer from the 2019 income statement to the 2019 balance sheet as an addition to retained earnings is (See Table 4.4) O $57,000 O $150,000 O $272,550 Diff: 2 Topic: Preparing The Pro Forma Income Statement Learning Obj.: LG 5 Learning Outcome: F-25 AACSB: Reflective Thinking $122,550 Table 4.4 Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2019, for Hennesaw Lumber, Inc. Hennesaw Lumber, Inc. estimates that its sales in 2019 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2019. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2018 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions. Income Statement Hennesaw Lumber, Inc. For the Year Ended December 31, 2018 Sales Revenue $4,200,000 Less: Cost of goods sold 3,570,000 Gross profits $ 630,000 Less: Operating expenses 210,000 Operating profits $ 420,000 Less: Interest expense 105,000 Net profits before taxes $ 315,000 Less: Taxes (21%) 66,150 Net profits after taxes $ 248,850 Less: Cash dividends 120,000 To: Retained earnings $ 128,850