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 s 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 fixed 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 profit Selling & administrative expenses Net income a2. What percentage increase in sales would enable the company to reach its goal? (Round your answer to 2 decimal places. 425-825-1641