A Corp. Consolidated Financial Statements

$ million Prior Current

Income statement year year

Revenues 900.0 990.0

Cost of sales (540.0) (594.0)

Selling costs (108.0) (118.8)

Depreciation (42.5) (44.0)

Operating profit 209.5 233.2

Interest expense (45.0) (45.0)

Earnings before taxes 164.5 188.2

Taxes (54.3) (62.1)

Net income 110.2 126.1

Dividends 22.0 25.2

Prior Current

Balance sheet year year

Assets

Working cash 22.0 24.2

Excess cash, marketable securities 170.0 187.0

Accounts receivable 90.0 99.0

Inventory 121.5 133.7

Current assets 403.5 443.9

Property, plant and equipment 450.0 495.0

Equity investments 120.0 120.0

Total assets 973.5 1,058.9

Liabilities and equity

Accounts payable 123.8 133.7

Short-term debt 90.0 90.0

Accrued expenses 88.0 95.0

Current liabilities 301.8 318.7

Long-term debt 210.0 210.0

Newly issued debt - -

Common stock 80.0 80.0

Retained earnings 381.7 450.2

Liabilities and equity 973.5 1,058.9

Using the preceding consolidated financial statements for A Corp. and assuming revenue is forecast to grow by 10% each year, forecast the Costs of Good Sold for 1 year in the future.

A.(594.0)

B.(653.4)

C.(623.7)

D.(600.0)