Finance- Please help. Questions are below.

Figure 1

CMS Co. Income Statement (in 000s)

Current

Year Pro-Forma Statements

	2017	2018	2019		2020	2021	2022
Net sales (all credit)	$777	$3051	$3814		$5340	$7475	$10,466
Cost of goods sold	257	995	1040		1716	2154	3054
Gross profit	520	2056	2774		3624	5321	7412
Selling and admin expenses	610	705	964		1520	2120	2645
Other income (expenses)*	0	0	0		500	0	0
Operating profit	(90)	1351	1810		2604	3201	4767
Interest expense	11	75	94		202	302	434
Income before taxes	(101)	1276	1716		2402	2899	4333
Income taxes (40% in 2013; 33% thereafter)	0	510	566		793	957	1430
Net income	($ 101)	$ 766	$ 1150		$ 1609	$ 1943	$ 2903
Dividends paid	0	0	0		0	0	0
Increase in retained earnings	($ 101)	$ 766	$ 1150		$ 1609	$ 1943	$ 2903
Average number of shares**	2326	2326	2347		2347	2347	2347
Earnings per share	($ 0.04)	$ 0.33	$ 0.49		$ 0.69	$ 0.83	$ 1.24
*Other income (expenses) refers to extraordinary gains and losses. In late 2020 $500,000 is expected from Rockcanand settlement of their suit.
**Shares are not publicly traded.

You are an independent investor seriously considering adding CMS to your portfolio. You are interested in a number of factors such as its record of profitability, prognosis for the future, various risk levels, and how it compares with others in the industry. From that perspective, please answer the following questions.

Questions

1. What was CMS rate of sales growth in 2019? What is it forecasted to be in each of the pro-forma years (2020, 2021, 2022)?

2. What was its net income growth 2019? What is the forecasted net income growth to be in 2020, 2021, and 2022? Is projected net income growing faster or more slowly than projected sales? After computing these values, carefully review the 2020 income statement data to see if you want to make any adjustments.