Create projected balance sheet for years $2018,2019,2020,2021,$ and $2022$ based on the historical financial statements as well

as the information provided in the Assumptions worksheet.

$***$Hint: Working capital accounts may be calculated based on the working capital ratios in FY$2017($See Working Capital Assumptions$).$

$***$Hint: Cash account information may be obtained based on the completed cash flow statement $($Q$4).$

Operating Assumptions:

Sales will grow at $7\%$ per year in the next $5$ years.

Cost of sales will be $67\%$ of total sales in the next $5$ years.

SG&A will be $17\%$ of total sales in the next $5$ years.

Annual Depreciation and Amortization increases by $60$ in each of the next $5$ years.

Capital expenditure $($CapEx$)$ will be $1,200$ in each of the next $5$ years.

Income Statement Assumptions:

Interest and investment income is $2\mathrm{.}5\%$ of the ending Cash & Short$-$Term Investments in the previous year.

Interest rate on debt is $5\%$ based on the ending ST Debt & Curr. Portion LT Debt and Long$-$Term Debt in the previous year.

Tax rate is assumed to be $21\%.$

$1,184$ million common shares outstanding.

Dividend payout ratio $=50\%$

Working Capital Assumptions

In the next $5$ years, AR to Sales ratio remains the same as that in the most recent fiscal year $($FY$2017).$

In the next $5$ years, Inventory to COGS ratio remains the same as that in the most recent fiscal year $($FY$2017).$

In the next $5$ years, Other current assets to Sales ratio remains the same as that in the most recent fiscal year $($FY$2017).$

In the next $5$ years, AP to COGS ratio remains the same as that in the most recent fiscal year $($FY$2017).$

In the next $5$ years, Income Tax Payable to Sales ratio remains the same as that in the most recent fiscal year $($FY$2017).$

In the next $5$ years, Other current liabilities to Sales ratio remains the same as that in the most recent fiscal year $($FY$2017).$

Assets Assumptions:

Intangible assets grows at the same rate as sales $(7\%)$ in the next $5$ years

Deferred tax assets grows at the same rate as sales $(7\%)$ in the next $5$ years

Other assets grows at the same rate as sales $(7\%)$ in the next $5$ years

Deferred tax liabilities grows at the same rate as sales $(7\%)$ in the next $5$ years

Other liabilities grows at the same rate as sales $(7\%)$ in the next $5$ years

Debt Assumptions

Short$-$term debt increases by $2\%$ in each year.

Long$-$term debt decreases by $8\%$ each year