use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2021, for General Systems, Inc.

General Systems, Inc. estimates that its sales in 2021 will be 8000000 . Interest expense is to remain unchanged at $105000 and the firm plans to pay cash dividends of 180000 during 2021. General Systems, Inc.'s income statement for the year ended December 31, 2020 is shown below:

Income statement

General Systems, Inc.

For the year ended December 31,2020

Sales Revenue

$4200000

Less: Cost of Goods sold

3570000

Gross profits

$630000

Less: Operating expenses

210000

Operating profits

$420000

Less: Interest expense

105000

Profit before tax

$315000

Less: Taxes (30%)

94,500

Net profit after taxes

$220500

Less: Cash dividends

120000

To retained earnings

$100500

What is the cost of goods sold in year 2021?

Answer for part 1

What is the gross profit in year 2021?

Answer for part 2

What are the operating expenses in year 2021?

Answer for part 3

What is the operating profit in year 2021?

Answer for part 4

What is the profit before tax in year 2021?

Answer for part 5

What is the profit after tax in year 2021?

Answer for part 6

How much goes to retained earnings in year 2021?

Answer for part 7