3. Forecasting of Income Statement and Balance Sheet. Fill in the 2021E (stands for 2021 forecast) numbers in Tables 1 and 2 below. Provide your detailed calculations. Use 2 decimal places for Smillion, for example $1.23million. (30 points) Table 1. FORECAST OF THE 2021 INCOME STATEMENT Forecastratios Income statement Percent 2021E $ Million 2020 2021E Revenue grow th 20.0 Revenue 240.0 Costs of goods sold/revenues 32.0 Cost of goods sold (90.0) Selling, general and 18.0 Selling, general and admin (45.0) admin/revenues Depreciation (19.0) Depreciation/revenue 10.0 EBIT 86.0 EBIT/revenue 40.0 Interest expense (23.0) Interest income 5.0 Nonoperating items Non operating income 4.0 Nonoperating income growth 10.0 Earnings before taxes (EBT) 72.0 Interest rates Taxes on EBT (24.0) (36.50) Interest expense 5.5 Net income 48.0 Interest income (fromexcess cash) 6.5 Taxes Operating tax rate Marginal tax rate Average tax rate 34.4 40.0 33.6 Table 2. FORECAST OF THE 2021 BALANCE SHEET Forecast worksheet Balance sheet Forecast ratio 2021E $ Million 2020 2021E Cash (in days) 8.6 Cash 5.0 Inventory (in days) 52.6 Excess cash 60.0 Accounts payable (in days) (28.2) Inventory 45.0 Net working capital (in days) 33.0 Current assets 110.0 Fixed assets (percent) Net PP&E 250.0 Net PP&E/revenues 102.0 Equity investments 100.0 Total assets 460.0 Nonoperating assets (percent) Growth in equity investments 3.0 Liabilities and equity Accounts payable 20.0 Dividend Payout Ratio 38.0% Short-term debt 213.0 213.0 Current liabilities 233.0 Long-term debt 80.0 80.0 Newly issued debt 0.0 Common stock 65.0 65.0 Retained earnings 82.0 Total liabilities and equity 460.0