Show me the steps to solve Presented below is the current year$-$ended income statement for Hildegard, Inc.:

$($In thousands$)$

Sales $$200,000$

Cost of goods sold $60,800$

Depreciation expense $20,500$

Other operating expenses $33,600$

Income taxes expense $16,530$

Net income $ $68,570$

Suppose Hildegard, Inc. forecasts the following events will occur during the following year:

$1-$ Increase in sales, cost of goods sold, and cash by $20\%$

$2-$ Effective tax rate, $30\%$

$3-$ Increase in operating expenses by $10\%$

$4-$ No change in depreciation

How much is Hildegard, Inc.$$s pro forma gross profit margin ratio expected to be during the year?

$58\mathrm{.}5\%$

$69\mathrm{.}6\%$

$68\mathrm{.}5\%$

$40\mathrm{.}0\%$