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Use the “percent of sales method” of preparing pro forma financial statements to determine the projection for next year’s cost of goods sold

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Use the “percent of sales method” of preparing pro forma financial statements to determine the projection for next year’s cost of goods sold. Make the following assumptions: current year’s sales are $27,800,000; current year’s cost of goods sold is $17,528,000; sales are expected to rise by 30%. What is the projection for next year’s cost of goods sold?

a. $21,459,200

b. $22,786,400

c. $20,481,000

d. $21,138,900