(Using common-size financial statements)The S&H Construction Company expects to have total sales next year totaling

$14,800,000.

In addition, the firm pays taxes at

35

percent and will owe

$311,000

in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be

55

percent of sales and operating expenses will total

31

percent. What is your estimate of the firm's net income (after taxes) for the coming year?

Complete the pro-forma income statement below:(Round to the nearest dollar.)

Pro-Forma Income Statement
Sales	$
Cost of goods sold
Gross profit	$
Operating expenses
Net operating income	$
Interest expense
Earnings before taxes	$
Taxes
Net income	$