- 8. Prepare a 2020 Income Statement and Balance Sheet forecast using the following assumptions: Round to one decimal place (20 points) - Sales Grow at 10% - Gross Margin=25% of Sales - SG&A 15% of sales - Interest Expense: same as 1995 Use the 2019 tax rate - Cash, Other Current Assets and Other Current Liabilities each = 4.0% of Sales - Accounts Receivable = 20 Days - Inventory Turnover = 25 -Net PP&E and Other Fixed Assets each grow at 5% per year - All Current Liabilities each grow at 5% per year - 2020 Dividend payout ratio = 20% - Debt is the Plug number - - 8. Prepare a 2020 Income Statement and Balance Sheet forecast using the following assumptions: Round to one decimal place (20 points) - Sales Grow at 10% - Gross Margin=25% of Sales - SG&A 15% of sales - Interest Expense: same as 1995 Use the 2019 tax rate - Cash, Other Current Assets and Other Current Liabilities each = 4.0% of Sales - Accounts Receivable = 20 Days - Inventory Turnover = 25 -Net PP&E and Other Fixed Assets each grow at 5% per year - All Current Liabilities each grow at 5% per year - 2020 Dividend payout ratio = 20% - Debt is the Plug number