open and complete the yellow cells in the Excel spreadsheet. If you are not familiar with common sized statements, you may what to watch the video on the lecture note page in week four. We are now in the part of the course where we will need to do educated predictions of the inputs for the valuation model. As with all predictions, there is no one correct answer, but there are better answers than others. Many people believe that this is where financial statement analysis becomes more of an art than a science. But let us begin with science, and science tells us that the best predictor of the future is the past, modified for internal or external conditions that are expected to change in some way. For this reason, the common sized history is a good starting point for your future estimates. For each of the income statement items listed below, please explain the logic behind your estimates for that individual item: 1. Explain the logic behind your estimates of future Food, Beverage, and Packaging expenses 2. Explain the logic behind your estimates of future Labor expenses 3. Explain the logic behind your estimates of future Operating costs