Forecasting Pro Forma Financial Statements Prepare a pro forma income statement and balance sheet for Webb Enterprises, where revenues are expected to grow by 20% in 2015 ~ 2017. Make the following assumptions in making your forecast.

• The income statement expenses are a constant percentage of revenues except for interest, which is charged at 5% of previous interest-bearing borrowings, and taxes, which equal 40% of earnings before taxes.
• The cash and marketable securities balance remain equal to $500, and the remaining current asset accounts increase in proportion to revenues.
• Net property, plant, and equipment increase in proportion to the increase in revenues.
• Depreciation will be estimated as 1% of sales.
• Accounts payable increases in proportion to firm revenues.
• Dividend of 400 are paid and will remain the same.
• Owners equity increases by the amount of firm net income minus dividend.
• Long-term debt remains unchanged, and short-term debt changes in an amount that balances the balance sheet.

1. Replicate the forecast for 2015 with excel formula.
2. Check the formula against the results for 2016.
3. Extend your forecasting to 2017.
4. Forecasting Firm FCF for 2017.

Your grade will be based on both the excel replication and new calculations.

The data for 2014 is inlcuded below. You can also get the data from the template.