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Income StatementHuddleston Manufacturing CompanyFor the Year Ended December 31, 2012Sales $2,800,000Less: Cost of goodssold 1,820,000Grossprofits $ 980,000Less: Operatingexpenses 240,000OperatingProfits $ 740,000Less: Interestexpense 70,000Net profits beforetaxes $ 670,000Less: Taxes(40%) 268,000Net profits aftertaxes $ 402,000Less: CashDividends 132,000To: Retainedearnings $ 270,000Huddleston Manufacturing estimates its sales in 2013 will be $3million. Interest expense is expected to remainunchanged at $70,000, and the firm plans to pay cash dividends of$140,000 during 2013. Cost of goods sold includes$200,000 in fixed costs, and operating expenses include $50,000 infixed costs. Use the percent?of?sales method to preparea pro forma income statement for the year ended December 31, 2013,based on the 2012 income statement shown above.