Han Company wishes to forecast its net income for the year 2003. Han has assembled balance sheet and income statement data for 2002 and has also done a forecast of the balance sheet for 2003. In addition. Han has estimated that its sales in 2003 will rise to $2,200. This information is summarized below.

Instructions:
Prepare a forecasted income statement for 2003 Clearly state what assumptions you make.

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Balance Sheet Cash. Other current assets Property, plant, and equipment, net.. Total assets Accounts payable Bank loans payable Total stockholders' equity... Total liabilities and stockholders' equity Income Statement Soles Cost of goods sold Grass profit.. 2002 2003 Forecasted $ 20 $ 22 500 550 600 $1,120 800 $1,372 $ 200 $ 220 600 500 320 652 $1,120 $1,372 2002 2003 Forecasted $2,000 $2,200 700 $1,300 120 1,010 Depreciation expense Other operating expenses $ 170 Operating profit. Interest expense Income before taxes Income taxes Net income 90 $ 80 30 S 50