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Following are the financial statements of CVS Caremark Corporation for the year en Required: Prepare a forecasted income statement and balance sheet for the company

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Following are the financial statements of CVS Caremark Corporation for the year en Required: Prepare a forecasted income statement and balance sheet for the company for the next year ending December 31,2017 ded December 31, 2016 CVS CAREMARK CORPORATION Consolidated Balance Sheets Dec. 31, 2015 Dec. 31, In millions 2016 S 4,177 Cash and cash equivalents S 1,380 Short-term investments 6,479 11,032 693 577 20,161 8,632 26,395 9,753 1,280 Accounts receivable, net 11,045 902 472 25,325 8,615 26,542 9,529 1,515 Inventories Deferred income taxes Other current assets Total current assets Property and equipment, net Goodwill Intangible assets, net Other assets Total assets $ 5,548 4,548 4,768 $ 5,070 3,974 5,101 Accounts payable Claims and discounts payable Accrued expenses Short-term debt Current maturities of long-term debt Total current liabilities Long-term debt Deferred income taxes Other long-term liabilities 561 15,425 12,841 3,901 1,421 5 14,150 9,133 3,784 1,501 Common stock, par value $0.01 17 17 (20,200) Treasury stock, at cost Capital surplus (16,301) Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity 29,777 28,493 149 29,120 24,998 181 37,653 37,938 $71,526 CVS CAREMARK CORPORATION Consolidated Statements of Income In millions Net revenues Cost of revenues Gross profft Total operating expenses Operating profit Interest expense, net Asset impairment expense Income before income tax provision Income tax provision Income from continuing operations Income (loss) from discontinued operations, net Net income Dec. 31 Dec. 31, 2015 $126,761 $123,120 102,978 100,632 22,488 23,783 15,746 8,037 509 15,278 7,210 348 6,305 436 3,869 7,528 4,600 7 $3,862 To forecast the financial statements, make the following assumptions. For accounts that are not included in the list Growth in net revenues Gross profit margin percentage Operating expenses to net revenues Income tax provision to income before income tax provision Income (loss) from discontinued operations Cash and cash equivalents to net revenues A/R to net revenes Inventories to net revenues CAPEX to net revenues Forecasted depreciation expense (S millions) Forecasted amortization of intangible assets (S millions)... Long-term debt due in current year ($ millions).. A/P to net revenues 5.0% 12.4% - picaation 38.9% $0 6.9% 8.7% 1.6% $1,119 $271 $576 4.4% 23.9% Dividends to net earnings Additional Information: The balance in property and equipment, net is increased by forecasted CAPEX and reduced by forecasted depreciation expense The balance in intangible assets, net is reduced by forecasted amortization expense. The balance in long-term debt is reduced by the current maturities of long-term debt (long-term debt due in current year). The balance in retained earnings is increased by net income and reduced by dividends. Any imbalance in total assets or total liabilities and equity that remains after all forecast assumptions are applied, must be eliminated by increasing short-term investments or short-term debt, respectively

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