The most recently completed income statement for RP Corporation is given below, along with assumptions for the following year. Use this information and create a projected income statement for the company.

Sales 15,000,000 COGS 6,000,000 Gross 9,000,000 Operating Expenses 7,500,000 Depreciation and Amortization 400,000 EBIT 1,100,000 Interest Expense 300,000 EBT 800,000 Taxes 240,000 Net Income 560,000 Shares 300,000 EPS $ 1.87

Sales increase by 20% COGS as a percentage of sales falls by 200 basis points Operating Expenses as a percentage of sales falls by 100 basis points Depreciation and Amortization increases by 20% The company issues $1,000,000 of additional debt at an interest rate of 7% The company retires $500,000 of existing debt at an interest rate of 12% The tax rate will remain the same The company sells an addition 50,000 shares of stock