Q3. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals, or that are not computed using information available from the model. Variable Modeling assumptions Revenue growth in the first forecast year equals revenue growth from the last year in historical period. After that, revenue growth rate is 0.63 percentage points less than the revenue growth rate from the previous year. Revenue Cost of sales SG&A and other indirect expenses Cost of sales to revenue in first year of forecast period equals ratio from last year of historical period. Subsequently, ratio worsens by 0.45 percentage points each year in forecast period. < SG&A and other indirect expenses to revenue in each year of forecast period equals average annual ratio from the historical period E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A Income Statement Revenue B Cost of Sales Gross Profit SG&A and other indirect expenses Operating Profit C D 2016A 698,000 -576,000 122,000 -92,000 30,000 E 2017A 707,000 -623,000 84,000 - 103,000 -19,000 F 2018A 723,000 -678,000 45,000 -134,000 -89,000 G 2019E H 2020E 2021E J 2022E K L