Brenda Wilson owns a restaurant chain named Rhapsody Cuisine. She is planning to expand her chain from 9 restaurants to 15. Brenda is now working to put together a set of pro forma financial statements for an investor who expressed interest in her expansion project. Brenda used a combination of common sense and industry norms to project her future income and expenses. Shortly after she submitted the financial statements, she received them back with a handwritten note from the investor, who wrote, “I’m comfortable with your sales forecasts but think you would be on firmer ground if you used the percent-of-sales method to forecast expenses. Please redo the statements.” If Brenda asked you what the investor was talking about, what would you tell her?