Common Sized income Statement 2016 2017 2018 Average Pro forma income statement 2019 Sales 100% 100.00% 100.00% 100% Sales $31,356,000,000 100.00% Cost of Good Sold 57.25% 59.97% 58.73% -58.65% Cost of Good Sold ($18,508,042,047.65) -58.65% Gross Profit 42.75% 40.03% 41.27% 41.35% Gross Profit $13,047,957,952.35 41.35% G&A Expenses -13.41% 12.94% 12.98% 13.11% SG&A Expenses ($4,135,603,758.73) 13.11% Depreciation Expense -10.60% -10.54% 10.68% -10.61% Depreciation Expense $3,348,082,961.40 -10.61% Total Operating Expenses -24.01% -23.48% -23.66% -23.72% Total Operating Expenses ($7,483,686,720.13) -23.72% Operating Income 18.74% 16.55% 17.61% 17.63% Operating Income $5,564,271,232.22 17.63% nterest Expense 1.36% -1.13% -1.03% -1.17% Interest Expense ($370,145,474.36) -1.17% Other Income/Expenses 0.16% 0.25% 0.33% -0.03% Other Income/Expenses ($7,977,831.41) -0.03% Income before Taxes 17.22% 15.17% 16.91% 16.43% Income before Taxes $5,186,147,926.45 16.43% Income Taxes -0.30% -0.34% 0.29% -0.31% Income Taxes ($97,575,797.15) -0.31% Net Income 16.92% 14.83 16.63% 16.13% Net Income $5,088,572,129.30 16.13% Tax Rate -1.74% -2.26% -1.69% -1.90% Expected Free cash Flows EBIT Less: Taxes NOPAT Plus: Depreciation LESS: CAPEX Less: Change in NWC FCF FCF = EBIT* (1 -T ) + Depreciation -CAPEX - Change in NWC Legend 2016 2017 2018 2019 Analysis of the investment in operating net working capital Operating networking captial (ONWC) Change in ONWC Analysis of Investment in PPE Net PPE Ending Balance Less: Net PPE Beginning Balance Plus: Depreciation CAPEX