Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income st Information related to financial projections for next year is as follows: (1) Projected sales are $6,006,000. (2) Cost of goods sold last year includes $998,000 in fixed costs. (3) Operating expense last year includes $246,000 in fixed costs. (4) Interest expense will remain unchanged. (5) The firm will pay cash dividends amounting to 35% of net profits after taxes. (6) Cash and inventories will double. (7) Marketable securities, notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sale (9) A new computer system costing $364,000 will be purchased during the year. Total depreciation expense for the year w (10) The tax rate will remain at 40%. a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the perc Operating protits Less: Interest expense $1,410,000 201,000 $1,209,000 483,600 $725,400 Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes 253,890 $471,510 Less: Cash dividends To retained earnings (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet for the Year Just Ended Assets Cash Marketable securities Liabilities and Stockholders' Equity $700,000 Less: CosI of goous SoIa $190,000 Accounts payable 230,000 Taxes payable 635,000 Notes payable 508,000 Other current liabilities $1,563,000 Total current liabilities 1,408,000 Long-term debt Common stock Gross profits 95,000 Less: Operating expenses Accounts receivable 205,000 4,800 $1,004,800 Inventories Operating profits Total current assets Less: Interest expense Net fixed assets 512,200 Net profits before taxes 77,000 Retained earnings 1,377,000 Less: Taxes (rate = 40%) Total assets $2,971,000 Total liabilities and equity $2,971,000 Net profits after taxes $