2. Using Excel formulas, compute the common size income statement for 2019, 2020, and 2021 for each line item. Put your answer in the corresponding blue box. 3. Using Excel formulas, you will be creating a projected income statement for 2022. You will be projecting sales using the growth rate (g) that you need to obtain from Yahoo Finance and input into cell M2. In the blue boxes in column K, you will be computing the percent of sales values. In the blue boxes in column M, you will be computing the income statement projections for 2022. In the green boxes in column M, you will be computing the final amount of an income statement item (ex. gross profit, net income, etc.). In cell M20, you will be computing the income taxes using the tax rate that is provided for you and is highlighted in orange. 4. Using Excel formulas, you will be computing the dividends paid (cell I32) and payout ratio (cell I33). The value for dividends paid in this section will be different than the value that you calculated for dividends paid in your projected income statement.

*If there is something that DOES NOT affect the income statement projections, write 'No Change' in the corresponding line item's 'Percent of Sales' box in column K and change the color of the corresponding line item's cells in columns K and M to yellow.

Current (2022) Growth Rate : 7.40%

Common Size Income Statement Projected Income Statement Percent of Sales Projections - Dec 2022 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 12 Months Ended Jan. 03, 2021 Jan. 02, 2022 Dec. 29, 2019 2021 2020 2019 Gross Profit: Income Statement [Abstract] Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development (Note 5) Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 20) Earnings before provision for taxes on income Provision for taxes on income (Note 8) Net earnings Net earnings per share (Notes 1 and 15) Basic (in dollars per share) Diluted (in dollars per share) Average shares outstanding (Notes 1 and 15) Basic (in shares) ) Diluted (in shares) $ 93,775 29,855 63,920 24,659 14,714 900 (53) 183 489 252 22,776 1,898 $ 20,878 $ 82,584 28,427 54,157 22,084 12,159 181 (111) 201 2,899 247 16,497 1,783 $ 14,714 $ 82,059 27,556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 Income before Taxes: Income Taxes: + Net Income: $ 7.93 $ 7.81 $ 5.59 $ 5.51 $ 5.72 $ 5.63 2,632.1 2,674 2,632.8 2,670.7 2,645.1 2,684.3 Dividends Paid: Additions to Retained Earnings: - Use 'Dividends to shareholders' from Statement of Cash Flows Dividends Paid: + Payout Ratio: + Common Size Income Statement Projected Income Statement Percent of Sales Projections - Dec 2022 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 12 Months Ended Jan. 03, 2021 Jan. 02, 2022 Dec. 29, 2019 2021 2020 2019 Gross Profit: Income Statement [Abstract] Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development (Note 5) Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 20) Earnings before provision for taxes on income Provision for taxes on income (Note 8) Net earnings Net earnings per share (Notes 1 and 15) Basic (in dollars per share) Diluted (in dollars per share) Average shares outstanding (Notes 1 and 15) Basic (in shares) ) Diluted (in shares) $ 93,775 29,855 63,920 24,659 14,714 900 (53) 183 489 252 22,776 1,898 $ 20,878 $ 82,584 28,427 54,157 22,084 12,159 181 (111) 201 2,899 247 16,497 1,783 $ 14,714 $ 82,059 27,556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 Income before Taxes: Income Taxes: + Net Income: $ 7.93 $ 7.81 $ 5.59 $ 5.51 $ 5.72 $ 5.63 2,632.1 2,674 2,632.8 2,670.7 2,645.1 2,684.3 Dividends Paid: Additions to Retained Earnings: - Use 'Dividends to shareholders' from Statement of Cash Flows Dividends Paid: + Payout Ratio: +