An analyst developed the following set of pro forma financial statements as an input into a valuation:

a. Spot the errors in the pro forma.
b. The analyst forecasts from these pro formas that residual operating income will grow at a rate of 8 percent per year. Do the pro formas justify this prediction?

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(in milions of dollars) Sales Operating expenses Operating income Net financial expenses Comprehensive income 2010E 454.D 408.6 45.4 6.4 2011E 481.2 48.1 2012E 510.1 51.0 2009A 10.5 12.9 255.1 2704 240.6 130 1106 25.0 (19.0 227.0 130.0 Net operatng assets Net financial obligations Common equity Net didends Free cash flow 130.0 25.0 28.0 25.0 29.6