Develop pro forma income statements for the next 5 years using the Revenue data from exhibit 3 & 4.

Exhibit 2
Income Statements
(USD in millions)	2011	2012	2013	2014	2015
Revenue	$ 43,218.00	$ 46,061.00	$ 48,607.00	$ 47,142.00	$ 49,161.00
Cost of revenue	$ (16,682.00)	$ (17,852.00)	$ (19,167.00)	$ (19,373.00)	$ (19,480.00)
Gross profit	$ 26,536.00	$ 28,209.00	$ 29,440.00	$ 27,769.00	$ 29,681.00
Research and development	$ (5,823.00)	$ (5,488.00)	$ (5,942.00)	$ (6,294.00)	$ (6,207.00)
Sales, general and administrative	$ (11,720.00)	$ (11,969.00)	$ (11,802.00)	$ (11,437.00)	$ (11,861.00)
Restructuring, merger and acquisition	$ (799.00)	$ (304.00)	$ (105.00)	$ (418.00)	$ (484.00)
Operating income	$ 8,194.00	$ 10,448.00	$ 11,591.00	$ 9,620.00	$ 11,129.00
Interest expense	$ (628.00)	$ (596.00)	$ (583.00)	$ (564.00)	$ (566.00)
Income before taxes	$ 7,566.00	$ 9,852.00	$ 11,008.00	$ 9,056.00	$ 10,563.00
Provision for income taxes	$ (1,335.00)	$ (2,118.00)	$ (1,244.00)	$ (1,862.00)	$ (2,220.00)
Net income	$ 6,231.00	$ 7,734.00	$ 9,764.00	$ 7,194.00	$ 8,343.00

Exhibit 3
Sales Forecast Assumption
Exchange Rate Assumption	FY2016	FY2017	FY2018	FY2019	FY2020
Pound (in dollars per Pound)	$1.40	$1.42	$1.44	$1.46	$1.48
Yen (in Yen per dollar)	112.00	114.00	116.00	118.00	120.00
(Units in Millions)
Product A
	FY2016	FY2017	FY2018	FY2019	FY2020
U.K. Division (Pounds)
Units	510	528	546	565	585
Price per Unit	6.65	14.47	14.76	15.05	15.35
Japanese Division
Units	400	404	408	412	416
Price per Unit	1,117.76	1,161.61	1,165.20	1,189.67	1,214.65
U.S. Division (Dollar)
Units	620	639	658	677	698
Price per Unit	$9.98	$10.19	$10.40	$10.62	$10.85
(Units in Millions)
Product B
	FY2016	FY2017	FY2018	FY2019	FY2020
U.K. Division (Pounds)
Units	315	318	321	325	328
Price per Unit	12.67	12.79	12.92	13.05	13.18
Japanese Division
Units	305	308	311	314	317
Price per Unit	2,128.00	2,130.00	2,132.00	2,133.00	2,134.00
U.S. Division (Dollar)
Units	210	213	216	220	223
Price per Unit	$19.00	$19.19	$19.38	$19.58	$19.77
(Units in Millions)
Product C
	FY2016	FY2017	FY2018	FY2019	FY2020
U.K. Division (Pounds)
Units	140	146	151	157	164
Price per Unit	33.33	33.99	34.67	35.37	36.07
Japanese Division
Units	95	98	102	105	109
Price per Unit	5,598.88	5,654.88	5,711.42	5,768.53	5,826.22
U.S. Division (Dollar)
Units	205	215	226	237	249
Price per Unit	$49.99	$49.99	$49.99	$51.00	$52.00

The products are all produced in the United States.

Please use the following data below to calculate the weighted average cost of goods sold.

Product A target: 38% (as a percent of sales)

Product B target: 41% (as a percent of sales)

Product C target: 39% (as a percent of sales)

Please assume the cost (as a percent of sales) for the following items will remain the same as year 2015:

Research and development

Sales, General and administrative

Restructuring, merger and acquisition

Please assume an average tax rate of 21%.

The Short Term debt has a cost of .5%.

The company has the following long term debt outstanding.

Exhibit 4
Debt
Currency	Maturity	Amount (USD)	Face Value (local FX)	Yield to Maturity	Coupon
GBP	2/20/2020	$1,400.00	1,000.00	2.010%	2.010%
USD	5/1/2025	$5,000.00	NA	1.691%	1.691%
JPY	7/1/2026	$4,000.00	448,000.00	1.210%	1.210%
USD	1/1/2027	$4,057.00	NA	3.246%	3.246%
GBP	2/20/2028	$7,000.00	5,000.00	3.625%	3.625%