1. The following income statement pertains to Merlot Corp. Use the following assumptions to complete a forecasted 2021 Net Income:

Assumptions for 2021:
	Revenue growth rate	32%
	Cost of Revenue	64% of sales
	SG &A expenses	23% of sales

	Interest expense	10% increase
	Tax rate 20%

Merlot Corp. Consolidated Statement of Income
(Thousands except per share amounts)	2020
Net Revenues	$345,000
Cost of Revenue	(226,000)
SG&A	(83,000)
Operating Income	36,000
Interest Expense	(600)
Income Before Income Taxes	35,400
Income taxes	(7,100)
Net Income	$28,300

Select the closest answer to your calculation

	A.	$31,296
	B.	$37,520
	C.	$48,924
	D.	$46,834