sheet, and cash flow statement for year 3. (Show your calculation like A/B=C or (A+B)/C=D etc. in given cells). a. PROJECTED INCOME STATEMENT (30 points) Best Buy Income Statement Forecasting ($ in millions) step Year 3 Estimate Year 2 Year 1 Net sales 15,326 12,494 Income before tax Cost of goods sold Gross profit Selling, general and administrative expense Depreciation and amortization expense Income tax expense Net income 12,267 10,101 3,059 2,393 2,251 1,728 167 103 641 562 245 215 396 347 0 Forecasting assumptions (income statement) Sales growth Gross profit margin 0.2267 0.1996 Selling, general and administrative expense/sales 0.1469 Depreciation expense/Gross prior year PPE 0.1528 Income tax expense/pretax income 0.3822 b. PROJECTED BALANCE SHEET (40 points) Best Buy Balance Sheet Forecasting ($ in millions) step Cash Receivables Inventories Other current assets PPE Total current assets Accumulated depreciation Net PPE Other assets Total assets Accounts payable Year 3 Estimate Year 2 Year 1 746 751 313 262 1,767 1,184 102 41 2,928 2,238 1,987 1,093 543 395 1,444 698 466 59 4,838 2,995 2,473 1,704 Short term debt and current portion of long-term debt 114 16 Income tax liabilities 127 65 Total current liabilities 2,714 1,785 Long-term debt 303 115 Total long-term liabilities 303 115 Common stock 20 20 Additional paid in capital 576 247 Retained earnings 1,225 828 Shareholders' Equity 1,821 1,095 Total liabilities and SHs' Equity 4,838 2,995 Forecasting assumptions (balance sheet) Accounts receivable turnover rate Inventory turnover rate Other current assets CAPEX (in millions) Other assets Accounts payable turnover rate Short term debt and current portion of LT debt Taxes payable/tax expense Long term debt Common stock Additional paid in capital Dividend payments 48.96 6.94 no change 1,262 no change 4.96 no change 0.5184 189 no change no change 0