A company anticipates revenues next year of $3,000,000. Interest expense is expected to remain the same at $50,000. The company expects to pay $40,000 in cash dividends.

Below is the Income Statement as of December 31, 2014.

Prepare a Pro-Forma income statement for December 31, 2015 using the percentage of sales method.

ACTUAL 2014

Sales Revenue $1,700,000

COGS $1,105,000

Gross Profits $595,000

Operating Expenses $120,000

EBIT $475,000

Interest Expense $50,000

EBT $425,000

Tax $170,000

Dividends $15,000

To Retained Earnings $240,000