Question: Net sales will increase by 2.0% (200 basis points) in FY2023. Cost of sales: 75% of forecasted sales. SG&A expenses: 18% of forecasted sales. No

Net sales will increase by 2.0% (200 basis points) in FY2023. Cost of sales: 75% of forecasted sales. SG&A expenses: 18% of forecasted sales. No announced divestitures for FY2023 Tax expenses as a percentage of pretax income: same as 2022 Benefit plan nonservice income is assumed to be zero. The following line items remain unchanged in dollar terms: Interest, net Net earnings attributable to noncontrolling interests ABC Company Income Statement 2022 Actual Forecast Assumption 2023 Forecasted Net sales 18,870 Cost of sales 14,153 Selling, general, and administrative expenses 2,936 Divestitures (gain) 30 Operating profit 1,752 Interest, net 525 Earnings before taxes and after-tax earnings from JV 1,227 Income taxes 215 Net earnings, including earnings attributable to NCI 1,012 Net earnings attributable to NCI 35 Net earnings attributable to ABC Company 977

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