Develop a Proforma Income statement and identify add'l funds to RE and EPS for 2020, for White & Pinkman Corporation using the company's 2019 financial statements and the following assumptions:

Sales Growth is predicted to be 20% in 2020

Calculate expenses based on execution year of 2019 for COGS and Selling & Admin Expenses

Depreciation expense and Interest Expense will remain the same

Companys tax rate for 2020 will be 40%

The same dollar amount of dividends will be paid to common stockholders in 2020

Sales

$11,000,000

Cost of goods Sold

$4,500,000

Gross Profit

$6,500,000

Selling & Admin. Expenses

$800,000

Depreciation Expense

$2,100,000

Operating Income (EBIT)

$3,200,000

Interest Expenses

$1,425,000

Earnings Before Tax (EBT)

$1,775,000

Income Tax (40%)

$710,000

Net Income (NI)

$1,065,000

Common Stock Dividends paid

$400,000

Addition to Retained Earnings

$665,000

Earnings per Share (1,000,000 shares)

$1.07

14. Develop a Proforma Income statement and identify add'l funds to RE and EPS for 2020, for White & Pinkman Corporation using the company's 2019 financial statements and the following assumptions: Sales Growth is predicted to be 20% in 2020 . Calculate expenses based on execution year of 2019 for COGS and Selling & Admin Expenses Depreciation expense and Interest Expense will remain the same . Company's tax rate for 2020 will be 40% . The same dollar amount of dividends will be paid to common stockholders in 2020 Sales $11,000,000 Cost of goods Sold $4,500,000 Gross Profit $6,500,000 Selling & Admin. Expenses $800,000 Depreciation Expense $2,100,000 Operating Income (EBIT) $3,200,000 Interest Expenses $1,425.000 Earnings Before Tax (EBT) $1,775,000 Income Tax (40%) $710.000 Net Income (NI) $1,065,000 Common Stock $400,000 Dividends paid Addition to Retained Earnings $665,000 Earnings per Share $1.07 (1,000,000 shares)