Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012. Prepare a forecasted income statement and balance sheet for the company for the next year.

Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012. Prepare a forecasted income statement and balance sheet for the company for the next year. Snap-On Incorporated Consolidated Balance Sheets 2011 (in millions) Cash and cash equivalents Trade and other accounts receivable-net Finance receivables-net Contract receivables-net Inventories, net Deferred income tax assets Prepaid expenses and other assets Total current assets Property and equipment, net Deferred income tax assets Long-term finance receivables-net Long-term contract receivables-net Goodwill Other intangibles, net Other assets Total assets Notes payable and current maturities of LT debt Accounts payable Accrued benefits Accrued compensation Franchise deposits Other accrued liabilities Total current liabilities Long-term debt Deferred income tax liabilities Retiree health care benefits Pension liabilities Other long-term liabilities Total liabilities Shareholders' equity attributable to Snap-on Inc. Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock at cost Total shareholders' equity attributable to Snap-on Inc. Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity 2010 $ 185.6 463.5 277.2 49.7 386.4 92.6 75.7 1,530.7 352.9 125.2 431.8 165.1 795.8 188.3 83.1 $3,672.9 $ 16.2 124.6 48.8 91.0 47.3 255.9 583.8 967.9 108.1 52.8 317.7 95.3 2,125.6 $ 572.2 443.3 215.3 45.6 329.4 87.0 72.7 1,765.5 344.0 91.5 345.7 119.3 798.4 192.8 72.2 $3,729.4 $ 216.0 146.1 45.0 86.7 40.4 346.9 881.1 954.8 94.4 59.6 246.1 89.0 2,325.0 67.3 181.4 1,843.7 (174.6) (386.9) 1,530.9 16.4 1,547.3 $3,672.9 67.3 169.2 1,644.1 (104.8) (387.3) 1,388.5 15.9 1,404.4 $3,729.4 Snap-On Incorporated Consolidated Statements of Earnings For the Fiscal Year (in millions) Net sales Cost of goods sold Gross profit Operating expenses, net Operating earnings before financial services Financial services revenue Financial services expenses Operating earnings from financial services before arbitration settlement Arbitration settlement Operating earning from financial services Operating earnings Interest expense Other income (expense)-net Earnings before income taxes and equity earnings Income tax expense Earnings before equity earnings Equity earnings, net of tax Net earnings Net earnings attributable to noncontrolling interests Net earnings attributable to Snap-on Incorporated 2011 $ 2,854.2 (1,516.3) 1,337.9 (953.7) 384.2 124.3 (51.4) 2010 $ 2,619.2 (1,408.1) 1,211.1 (894.1) 317.0 62.3 (47.9) 72.9 18.0 90.9 475.1 (61.2) (1.0) 412.9 (133.7) 279.2 4.6 283.8 (7.5) $ 276.3 14.4 -14.4 331.4 (54.8) 0.8 277.4 (87.6) 189.8 3.2 193.0 (6.5) $ 186.5 To forecast the financial statements, make the following assumptions. For accounts that are not included in the list below, assume that the amount will not change for the forecasted year. Net sales growth Cost of goods sold margin Operating expenses to net sales Financial services revenue growth Financial services expenses to financial services revenue Arbitration settlement Income taxes to income before tax Noncontrolling interest net earnings to net earnings Cash and cash equivalents to net sales Trade A/R to net sales Inventory to net sales CAPEX to net sales Depreciation to start of year PPE, net Amortization expense to start of year intangibles, net A/P to net sales Other accrued liabilities to net sales Snap-on dividends to net earnings Noncontrolling interest dividends to net earnings Notes payable and current maturities of long-term debt 2.0% 53.1% 33.4% 90.0% 41.4% $0 32.9% 2.6% 6.5% 16.2% 13.5% 2.1% 14.3% 13.1% 4.4% 9.0% 27.0% 2.5% $0 Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012. Prepare a forecasted income statement and balance sheet for the company for the next year. Snap-On Incorporated Consolidated Balance Sheets 2011 (in millions) Cash and cash equivalents Trade and other accounts receivable-net Finance receivables-net Contract receivables-net Inventories, net Deferred income tax assets Prepaid expenses and other assets Total current assets Property and equipment, net Deferred income tax assets Long-term finance receivables-net Long-term contract receivables-net Goodwill Other intangibles, net Other assets Total assets Notes payable and current maturities of LT debt Accounts payable Accrued benefits Accrued compensation Franchise deposits Other accrued liabilities Total current liabilities Long-term debt Deferred income tax liabilities Retiree health care benefits Pension liabilities Other long-term liabilities Total liabilities Shareholders' equity attributable to Snap-on Inc. Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock at cost Total shareholders' equity attributable to Snap-on Inc. Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity 2010 $ 185.6 463.5 277.2 49.7 386.4 92.6 75.7 1,530.7 352.9 125.2 431.8 165.1 795.8 188.3 83.1 $3,672.9 $ 16.2 124.6 48.8 91.0 47.3 255.9 583.8 967.9 108.1 52.8 317.7 95.3 2,125.6 $ 572.2 443.3 215.3 45.6 329.4 87.0 72.7 1,765.5 344.0 91.5 345.7 119.3 798.4 192.8 72.2 $3,729.4 $ 216.0 146.1 45.0 86.7 40.4 346.9 881.1 954.8 94.4 59.6 246.1 89.0 2,325.0 67.3 181.4 1,843.7 (174.6) (386.9) 1,530.9 16.4 1,547.3 $3,672.9 67.3 169.2 1,644.1 (104.8) (387.3) 1,388.5 15.9 1,404.4 $3,729.4 Snap-On Incorporated Consolidated Statements of Earnings For the Fiscal Year (in millions) Net sales Cost of goods sold Gross profit Operating expenses, net Operating earnings before financial services Financial services revenue Financial services expenses Operating earnings from financial services before arbitration settlement Arbitration settlement Operating earnings Interest expense Other income (expense)-net Earnings before income taxes and equity earnings Income tax expense Earnings before equity earnings Equity earnings, net of tax Net earnings Net earnings attributable to noncontrolling interests Net earnings attributable to Snap-on Incorporated 2011 $ 2,854.2 (1,516.3) 1,337.9 (953.7) 384.2 124.3 (51.4) 2010 $ 2,619.2 (1,408.1) 1,211.1 (894.1) 317.0 62.3 (47.9) 457.1 18.0 475.1 (61.2) (1.0) 412.9 (133.7) 279.2 4.6 283.8 (7.5) $ 276.3 331.4 -331.4 (54.8) 0.8 277.4 (87.6) 189.8 3.2 193.0 (6.5) $ 186.5 To forecast the financial statements, make the following assumptions. For accounts that are not included in the list below, assume that the amount will not change for the forecasted year. Net sales growth Cost of goods sold margin Operating expenses to net sales Financial services revenue growth Financial services expenses to financial services revenue Arbitration settlement Income taxes to income before tax Noncontrolling interest net earnings to net earnings Cash and cash equivalents to net sales Trade A/R to net sales Inventory to net sales CAPEX to net sales Depreciation to start of year PPE, net Amortization expense to start of year intangibles, net A/P to net sales Other accrued liabilities to net sales Snap-on dividends to net earnings Noncontrolling interest dividends to net earnings Notes payable and current maturities of long-term debt 2.0% 53.1% 33.4% 90.0% 41.4% $0 32.9% 2.6% 6.5% 16.2% 13.5% 2.1% 14.3% 13.1% 4.4% 9.0% 27.0% 2.5% $0