MKTG315 Assignment 1 Pro Forma Income Statement Homer Simpson's Bike Store (HSBS) in downtown Charleston had a sales revenue of $1,000,000 in the year of 2020. The cost of goods sold in 2020 was $500,000. In addition, HSBS paid a total of $200,000 for staff salaries and $100,000 for administrative overhead. It also spent $50,000 on advertising and sales promotion in 2020. In the year of 2021, Homer Simpson expects sales to grow by 15 percent. The cost of goods sold is also expected to increase by 10 percent. In addition, it is also expected that the staff salaries and administrative overhead will increase by 5 percent in 2021. Due to increasing competition in downtown Charleston, HSBS also intends to spend 30% more on advertising and sales promotion in 2021 than in 2020. Based on the information above, please prepare a pro forma income statement for Homer Simpson's Bike Store in the year of 2021. Pro Forma Income Statement 2021 Sales Cost of goods sold Gross margin Marketing expenses General and administrative expenses Staff salaries Administrative overhead Net profit before income tax
