look plug them in - To create a five-year income statement forecast, we will follow these steps: 1. Sales Forecast: o Start with the net sales for 2024, which is $642,637 million. o Apply a 4.0% growth rate annually for the next five years. 2. Cost of Goods Sold (COGS): o Use the assumption that COGS will be 75.0% of sales for each year. 3. Selling and Administrative Expenses: o Assume these expenses will be 19.0% of sales for each year. 4. Interest Income: o Calculate interest income using a 2.6% interest rate on the average cash balances. This requires projecting cash balances, which will be part of the balance sheet forecast. 5. Interest Expense: o Use a 4.2% interest rate on the average amount of interest-bearing debt. This will also require projecting debt balances. 6. Income Tax Expense: o Calculate the average effective tax rate from the past three years: 2024: 5,57821,84825.521,8485,57825.5 2023: 5,72417,01633.617,0165,72433.6 2022: 4,75618,69625.418,6964,75625.4 o Average tax rate: \( \frac{25.5% 33.6% 25.4%}{3} \approx 28.2% \)