B. Pro Forma Income Statement Qtr 1 Qtr 2 Qtr 3 Qt! 4 Total Sales $ 990,000.00 $ 1,039,500.00 $ 1,091,475.00 $ 1,309,770.00 $ 4,430,745.00 Cost of Goods Sold: 734,845.55 765,865.78 795,634.10 923,942.10 3,220,237.53 Gross Profit $ 255,154.45 $ 273,634.22 $ 295,840.90 $ 385,327.90 $ 1,210,457.47 Selling and adminisirative expenses 210,700.00 211,195.00 211,714.75 213,897.70 847,507.45 Income Belore Interest and Taxes 44,454.45 62,439.22 84,126.15 171,930.20 362,950.02 Interest Expense 16,649.54 16,599.29 16,549.04 16,498.79 66,296.64 Pretax net operating income 27,804.92 45,839.93 67,577.11 155,431.42 296,653.33 Income taxes 3,341.47 13,751.98 20,273.13 46,629.42 83,996.01 After tax net operating income $ 19,463.44 $ 32,087.95 $ 47,303.98 $ 108,801.99 $ 207,657.36 1. I chose to change Jeffs assumption of 20% to what Nicole said and do 10% for the drop in sales. I believe this is the most logical and less dramatic I worried about his big bonus which is why he 'was against this change. In the case Nicole chose to "throw out" her assumption in part 2 because she di