Input the following as assumptions in the assumption part of the spreadsheet (grey highlighted cells at the top of the spreadsheet) and then reference those cells when projecting the appropriate income statement, balance sheet, or break-even account. Do NOT hard code numbers into your projections. Project 2023 - 2025 Income Statement and Balance Sheet. Assumptions: Sales growth rates in each of next 3 years: 26%, 33%, 44% Operating expenses/sales percentage stay at 2022 level Cost of goods sold as % of sales stays at 2022 level for 2023 and then improves (goes down!) by .05 in 2024 and by another .03 in 2025 40% tax rate on Earnings Before Taxes No new stock issued Interest expense fixed at $400 / year Bank loan and LT debt stay constant 2023 A/R days = year 2022 days, then decrease by 3 days in 2024 & another 3 days in 2025 2023 Inventory days = year 2022 days then decrease by 3 days in 2024 & another 3 days 2025 A/P days stays at year 2022 days Net fixed assets and accruals: use 2022 % of sales Required cash fixed at 1000 Calculate Additional Funds Needed as plug (to get Balance Sheet to balance!) Calculate 2023 breakeven revenues and units. Assumptions: Use SG&A expenses as fixed costs Average price per unit is $50

Your Name(s):
		Assumptions (use these to drive projected IS and BS)
Sales Growth %		0.26	0.33	0.44
Average price per item
Cost of Goods Sold % of Sales
SG&A % of Sales
Tax Rate % of Earnings before taxes
A / R days
Inventory Days
Net Fixed Assets % of Sales
Days Payable
Accrued Liability % of Sales
INCOME STATEMENT	Actual	`<<<<<<< -- Forecast -->>>>>>>>>>>>>
	2022	2023	2024	2025
Net Sales	15000	18900	25137	36197
Cost of Goods Sold	10500
Gross Profit	4500
SG&A expenses	2500
Interest	400
Earnings Before Taxes	1600
Taxes (40%)	640
Net Income	960
BALANCE SHEET
Required Cash	1000
A/R	2000
Inventories	2200
Total Current Assets	5200
Net Fixed Assets	6800
Total Assets	12000
Accounts Payable	1600
Bank Loan	1800
Accured Liability	1200
Total Current Liability	4600
Long Term Debt	2200
Common Stock	2400
Retained Earnings	2800
Additional Funds Needed (AFN)	0
Total Liability & Equity	12000
BREAKEVEN CALCULATION
Fixed Costs
Gross margin
BREAKEVEN REVENUES
Price per unit
BREAKEVEN UNITS