Part II Answer the following problem: Income Statement Robinson Manufacturing Company For the Year Ended December 31, 2018 Sales Less: Cost of goods sold Gross profits Less: Operating expenses Operating Profits Less: Interest expense Net profits before taxes Less: Taxes (40%) Net profits after taxes Less: Cash Dividends To: Retained earnings $2,800,000 1,820,000 $ 980,000 240,000 $ 40,000 70,000 $ 670,000 268,000 $ 402,000 132,000 $ 270,000 Robinson Manufacturing estimates its sales in 2019 will be $3 million. Interest expense is expected to remain unchanged at $70,000, and the firm plans to pay cash dividends of $140,000 during 2019. Use the percent-of-sales method to prepare a pro forma income statement shown above.

Part II Answer the following problem: Income Statement Robinson Manufacturing Company For the Year Ended December 31, 2018 Robinson Manufacturing estimates its sales in 2019 will be $3 million. Interest expense is expected to remain unchanged at $70,000, and the firm plans to pay cash dividends of $140,000 during 2019. Use the percent-of-sales method to prepare a pro forma income statement shown above