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$($Using common$-$size financial statements$)$ The S&H Construction Company expects to have sales next year totaling $$14,500,000.$ In addition, the firm pays taxes at $21$ percent and will owe $$280,000$ in interest expense. Based on last year's operations, the firm's management predicts that its cost of goods sold will be $57$ percent of sales and operating expenses will total $33$ percent. What is your estimate of the firm's net income $($after taxes$)$ for the coming year?

STEP $1$: Picture the Problem

A common$-$size financial statement is a standardized version of a financial statement in which all entries are presented in percentages. A pro$-$forma income statement is a statement of projected income and expenses. The common$-$size income statement not only allows us to quickly identify the relative importance of each type of expense, but it also permits us to make projections for the future by building the pro$-$forma income statement. Before building the pro$-$forma income statement, the company must first develop a sales forecast for the upcoming year.

STEP $2$: Decide on a Solution Strategy

We will use the given projected data and the percentages of the different expenses with respect to the projected sales to construct the pro$-$forma income statement.

Complete the pro$-$forma income statement below: $($Round to the nearest dollar.$)$

Pro$-$Forma Income Statement

Sales $q,$

Cost of goods sold

Gross profit $q,$

Operating expenses $q,$

Net operating income

Interest expense $q,$

Earnings before taxes

Taxes $q,$

Net income $q,$