Can somebody please help me solve this problem...........

CP 6-4 Sales disu/ Your sister op ' ' in its third ye , ration. The inc prepared for th ' - * a . 13 boat Parts dismbulvrsh.[rocemh .' shown below and "J'Budget Parts Company Income Statement ' For the Year Ended July 31, 2012 Revenues: m k Net sales .......................................... ,. .. . emo 000 Interest revenue ...... . .. ,.. ........ . .. . i . ......... 7150'1' Total revenues ........................................ SCUZlSUO Expenses: ' Cost of merchandise sold ........................................ $360,000 Selling expenses ................................................. 67500 Administrative expenses ........................................ 36.000 Interest expense ................................................. 11,250 Total expenses ............................................... "W- 474.750 Net income ....................................................... si32,750 ' Your sister is considering a proposal to increase net income by offering sales discounts ot Z/lS, n/50, and by shipping all merchandise POB shipping point, Currently, no sales discounts are allowed and merchandise is shipped FOR destination. It is estimated that these credit terms will increase net sales by 15%. The ratio of the cost of merchandise sold to net sales is expected to he 60%. All selling and administrative expenses are expected to remain unchanged, except for store supplies, miscellaneous selling, office supplies. and miscellaneous administrative expenses, which are expected to increase proportionately with increased net sales. The amounts of these preceding items for the year ended July 51, 2012, were as follows: Store supplies expense $9,000 Miscellaneous selling expense 2,400 Office supplies expense 2,000 Miscellaneous administrative expense 1,000 The other income and other expense items will remain unchanged. The shipment of all merchandise FOB shipping point will eliminate all delivery expense, which for the year ended July 51, 2012, were 312,000. lt Prepare a projected single-step income statement for the year ending July jll, 2015, based on the proposal. Assume all sales are collected Within the discount period. 2. a. - Based on the projected income statement in (l), would you recommend the implementation of the proposed changes? h Describe any possible concerns you may have related to the proposed changes described in ( l)