Multiple year forecast income statement (1 page) and Multiple year forecast balance sheet (1 page): 1 - Multiple year forecast income statement: Prepare year 1 and year 2 income statement forecasts on

Multiple year forecast income statement

Prepare year 1 and year 2 income statement forecasts on each company using “Morgan Stanley Forecast Process” and the major assumptions listed below. Use Exhibit 12.4 as a guide.

Income statement item (if applicable)	Year 1 assumptions	Year 2 assumptions
Sales estimate	1.5% growth	2% growth
Cost of good sold	1% increase as a % of sales	0.5% decrease as a % sales
Selling, general, administration expense	No change	1% increase
Interest income	No change	No change
Other nonoperating income, net	No change	No change
Income taxes on continuing operations	No change in income tax rate	10% reduction to corporate income tax rate if company is profitable OR an additional 5% of total assets if company is in a loss position

Multiple year forecast balance sheet

Prepare year 1 and year 2 balance sheet forecasts on each company using “Morgan Stanley Forecast Process” and the major assumption listed below. Use Exhibit 12.4 as a guide.

Balance sheet item (if applicable)	Year 1 assumptions	Year 2 assumptions
Capital expenditures	5% of net PPE	7.5% of net PPE
Nonoperating assets and liabilities	No change	No change
Current maturing debt	No change	10% increase
Stock and paid-in capital	No change	No change
Accumulated other comprehensive income/loss	No change	No change
Dividend	10% of net income (if applicable)	10% of net income (if applicable)
Noncontrolling interest	No change	No change