At the beginning of the year, Ronny forecasted that the sales for 2020 would be GHS120 million, while cost of goods sold would be GHS97.32 million. Prepare a three-year forecast as the chief financial officer. He predicted that at the end of 2020, the current asset investment needed to support projected sales are listed below:

Item GHS Cash 3,960,000 Accounts receivable 19,726,000 Inventory 13,865,000 Prepaid expenses 480,000 Total current assets 38,031,000 Exhibit 3 Forecasting Assumptions- 2020 through 2022 Line Item Assumption or Ratio Cost of goods sold Research and development Selling, general and administrative Interest expense Other income (expenses) 81.10% of sales 5.0% of sales 8.36% of sales Beginning of year debt balance x interest rate GHS50,000 of expense each year Cash Accounts receivable Inventories Prepaid expenses Property, plant & equipment at cost 3.3% of sales 60 days sales outstanding 52 days of cost of good sold 0.4% of sales Beginning PP&E at cost + capital expenditures Beginning Accumulated Depreciation + 7.5% of beginning PP&E at cost Accumulated depreciation Accounts payable Purchases Accrued expenses Income taxes payable Other current liabilities 30 days of purchases 60% of cost of goods sold 0.73% of sales 10% of income taxes expense 0.62% of sales Item GHS Cash 3,960,000 Accounts receivable 19,726,000 Inventory 13,865,000 Prepaid expenses 480,000 Total current assets 38,031,000 Exhibit 3 Forecasting Assumptions- 2020 through 2022 Line Item Assumption or Ratio Cost of goods sold Research and development Selling, general and administrative Interest expense Other income (expenses) 81.10% of sales 5.0% of sales 8.36% of sales Beginning of year debt balance x interest rate GHS50,000 of expense each year Cash Accounts receivable Inventories Prepaid expenses Property, plant & equipment at cost 3.3% of sales 60 days sales outstanding 52 days of cost of good sold 0.4% of sales Beginning PP&E at cost + capital expenditures Beginning Accumulated Depreciation + 7.5% of beginning PP&E at cost Accumulated depreciation Accounts payable Purchases Accrued expenses Income taxes payable Other current liabilities 30 days of purchases 60% of cost of goods sold 0.73% of sales 10% of income taxes expense 0.62% of sales