$1)$ The historical financial statements for Watt Tech Corp. are provided in the associated spreadsheet titled $$Watt Tech Corp. Valuation Exercise$.$ You are to fill in the highlighted boxes on the $$Instruction worksheet$$ with the last $4$ digits of your Student ID number. These digits are used to create a sales forecast for $2024-2027$ as shown in a separate worksheet titled $$Sales Forecast$.$ The last column in the worksheet will be sales for $2028$ which is the first year when sales grow at the terminal growth rate. The terminal growth rate is assumed to be $3\mathrm{.}5\%.$

$2)$ Do not change any cells on any of the worksheets unless they are highlighted in yellow.

$3)$ Forecast financial statements for $2024-2028$ and fill in all yellow highlighted cells on $$Fixed Assets$$ and $$Pro Forma$$ worksheets. Use the assumptions listed below. Use the percent of sales method based on the average of the $2021-2023$ ratios for all but the income tax rate and the other exceptions noted below. For the income tax rate $($provision for income taxes divided by income before taxes$),$ use the $2023$ ratio.

a$.$ Cash is the plug account. $($plug account $-$ the account that you will change manually so your balance sheet balances$)$

b$.$ Assume that loss from discontinued operations and other expense $($income$)$ net are $$0$ for all years.

c$.$ Watt Tech Corp. has no short$-$term loans.

d$.$ To forecast depreciation and net new capex $($also known as growth capex$)$ as a percentage of the increase in sales use the average of the $2022-2023$ historic values. $($account of half$-$year rule$)$

e$.$ The cost of Watt Tech Corp$$s long$-$term debt $($pre$-$tax$)$ is $5\mathrm{.}0\%.$

f$.$ Hold the following accounts constant at their $2023$ level: $1)$ Goodwill, $2)$ Intangibles and Other Assets, $3)$ Deferred Income Taxes, $4)$ Common Stock; $5)$ Other Income & Deferred Compensation; and $6)$ Long$-$term debt.

g$.$ Assume that the company pays no dividends in the future.