Top executive officers of Preston Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement Current Year $1,900,000 1,330,000 Sales revenue Cost of goods sold Gross profit Selling & admin. expenses Net income 570,000 267 000 $ 303,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fred cost of $77.000 The president has announced that the company's goal is to increase net income by 20 percent Required The following items are independent of each other. a.1. Prepare a pro forma income statement. PRESTON COMPANY Pro Forma Income Statement Sales revenue Cost of goods sold Gross proft Selling & administrative expenses Net income a 2. What percentage increase in sales would enablo the company to reach ts goal? (Round your answer to 2 decimal places) up