PROBLEM: FINANCIAL PLANNING

(Financial Forecasting) Use the percent of sales methods to prepare  pro forma income statement for Calico Sales Co., Inc. projected sales for next year is P 4million. Cost of Goods sold is expected to be 70% of sales, administrative expense equals to P500,000.00 and depreciation expense is P 300,000. Interest expense equals P50,000 and income  is taxed at a rate of 40%. The firm plans to spend P 200,00.00 during the period to renovate  its office facility and will retire P 150,000 in notes payable .Finally Selling expense equals 5 percent of sales.