Refer to the following financial statements for Kodak: Liabilities and shareholders equity Current liabilities Required: Prepare forecasts

Refer to the following financial statements for Kodak:

Liabilities and shareholders’ equity
Current liabilities

Required:
Prepare forecasts of its income statement, balance sheet, and statement of cash flows for 20x7 under the following assumptions:
a. All financial ratios remain at 20x6 levels.
b. Kodak will not record restructuring costs for 20x7.
c. Taxes payable are at the 20x6 level of $544 million.
d. Depreciation expense charged to SG&A is $765 million and $738 million for 20x6 and 20x5, respectively.
e. Gross PPE is $12,982 million and $12,963 million for 20x6 and 20x5, respectively.
f. Projected current maturities of long-term debt are $13 million for 20x7.
g. Capital expenditures for 20x6 and 20x5 are $1,047 and $783,respectively.

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INCOME STATEMENT 20x5 For Year Ended December 31 (in millions) Net sales Cost of goods sold 20x6 20x4 Gross profit. Selling, general, and administrative expenses.· Research and development costs Restructuring costs (credits) and other... $13,234 8,670 4,564 2,781 779 $13,994 8,375 5.619 2,665 784 (44) 2,214 $14,089 8,086 6,003 2,846 817 350 1,990 Earnings from operations.····.. .. Interest expense . Other income (charges) Earnings before income taxes. .- . - Provision for income taxes.. 345 219 (18) 96 2,132 725 1,407 261 2,109 . 32 Net earnings 1,392 BALANCE SHEET At December 31 (in millions, except share and per share data) Assets Current assets 20x6 20x5 Cash and cash equivalents Receivables, net Inventories, net Deferred income taxes Uther current assets 448 $ 246 2,337 2,653 1,137 1,718 575 299 521 240 Total current assets Property, plant, and equipment, net Goodwill, net Other long-term assets 4,683 5,491 5,659 5,919 947 948 2,072 $13,362 Total assets. . $14,212 3,276 3,403 1,3782,058 Accounts payable and other current liabilities Short-term borrowings Current portion of long-term debt Accrued income taxes 544 606 Total current liabilities Long-term debt, net of current portion.... Postemployment liabilities. . .. Other long-term liabilities .,666 1,166 2,7282,722 681 720 Total liabilities Shareholders' equity . 10,468 10,784 Common stock, $2.50 par value 950,000,000 shares authorized: issued 391,292,760 shares in 20x6 and 20x5; 290,929,701 and 290,484,266 shares outstanding in 20x6 and 20x5 978 871 7,43 7,869 978 Additional paid in capital Retained earnings . 8,661 9,236 Treasury stock, at cost; 100,363,059 shares in 20x6 and 100,808,494 shares in 20x5 Total shareholders' equity .. 2,8943,428