KMorgan CorporationIncome Statement$2020$$ $3,600,000\mathrm{.}00$ $ $3,300,000\mathrm{.}00$$ $2,300,000\mathrm{.}00$ $ $2,250,000\mathrm{.}002021$ Increase$/$Decrease Percentage$ $1,300,000\mathrm{.}00$$ $1,050,000\mathrm{.}00$es $ $650,000\mathrm{.}00$ S $600,000\mathrm{.}00$$ $90,000\mathrm{.}00$ $ $100,000\mathrm{.}00740,000\mathrm{.}00$ $ $700,000\mathrm{.}00560,000\mathrm{.}00$ $$54,000\mathrm{.}00$ $ $52,000\mathrm{.}00350,000\mathrm{.}0091,000\mathrm{.}00$ $ $58,000\mathrm{.}00$M$415,000\mathrm{.}00$ $ $240,000\mathrm{.}00-300000\mathrm{.}00-50000\mathrm{.}00-250000\mathrm{.}00-50000\mathrm{.}0010000\mathrm{.}00-40000\mathrm{.}00-210000\mathrm{.}00-2000\mathrm{.}00$N$-33000\mathrm{.}00-8\mathrm{.}33\%-2\mathrm{.}17\%-19\mathrm{.}23\%-7\mathrm{.}69\%11\mathrm{.}11\%-5\mathrm{.}41\%-37\mathrm{.}50\%-3\mathrm{.}70\%-36\mathrm{.}26\%-175000\mathrm{.}00-42\mathrm{.}17\%$ Use your $2021$ Income Statement as your base, and then make the adjustments listed below in order to construct a $2022$ Pro Forma Income Statement.

Pro Forma Income Statement for $2022$ includes the following Management assumptions.

Sales for existing business will remain at $$3,300,000,$ but add $$500,000$ for new clothing line.

Cost of Goods Sold for existing business will remain at $$2,250,000.$ Add $$300,000$ to Cost of Goods Sold for new clothing line.

Selling and Administrative Expenses will increase by $15\%$ with new line.

Assume Interest will be $$50,000$ in $2022.$

Assume Taxes will be $30\%$ of Earnings Before Taxes for $2022.$

$\%$SalesLess: COGSGross MarginJOperating ExpensesDepreciation ExpenseTotal Operating ExpensesOperating IncomeSelling$/$Administrative Expenses $ $650,000\mathrm{.}00$ $ $600,000\mathrm{.}00$Less: Interest ExpenseLess: Tax ExpenseKNet IncomeMorgan CorporationIncome Statement$20202021$ Increase$/$Decrease Percentage$ $3,600,000\mathrm{.}00$ $ $3,300,000\mathrm{.}00$$ $2,300,0$D$0\mathrm{.}00$ $ $2,250,000\mathrm{.}00$$ $1,300,000\mathrm{.}00$ $ $1,050,000\mathrm{.}0090,000\mathrm{.}00$ S $100,000\mathrm{.}00740,000\mathrm{.}00$ $ $700,000\mathrm{.}00560,000\mathrm{.}00$ $ $350,000\mathrm{.}0054,000\mathrm{.}00$ $ $52,000\mathrm{.}0091,000\mathrm{.}00$ $ $58,000\mathrm{.}00415,000\mathrm{.}00$ $$240,000\mathrm{.}00-300000\mathrm{.}00-50000\mathrm{.}00-50000\mathrm{.}00$N$-250000\mathrm{.}00-19\mathrm{.}23\%-8\mathrm{.}33\%-7\mathrm{.}69\%10000\mathrm{.}0011\mathrm{.}11\%-40000\mathrm{.}005\mathrm{.}41\%-2000\mathrm{.}00-2\mathrm{.}17\%-33000\mathrm{.}00-210000\mathrm{.}00-37\mathrm{.}50\%-3\mathrm{.}70\%-36\mathrm{.}26\%-175000\mathrm{.}00-42\mathrm{.}17\%$