Based on economic conditions, she believes that the increase in sales for the current year should approximate the historical trend in terms of actual dollar increases.

Based on her knowledge of industry trends, she believes that the gross profit percentage for $20$X$4$ should be about $2$ percent less than the percentage for $20$X$3.$

Based on her knowledge of regulations, she is aware that the effective tax rate for the company for $20$X$4$ has been reduced by $5$ percent from that in $20$X$3.$

Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company$$s line of credit for $20$X$4$ was approximately $12$ percent. The average outstanding balance of the line of credit is $$2,300,000.$ This line of credit is the company$$s only interest$-$bearing debt.

Based on her discussions with management and her knowledge of the industry, she believes that the amount of other expenses should be consistent with the trends from prior years.