Forecasting and Trends 'lhe Income statement and balance sheet for Central Perks Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase o'f55,000 in depreciation expense from 2019. Sales next year should be $4,407,500, and the dividend payment to common stockholders will equal the dividend payment in 2019. Cost of Goods Sold, S,G&A Expense, Interest Expense, Accounts Receivable, Inventory, Accounts Payable, and Other Current Liabilities will vary with sales. Cash, Notes Payable, Long-Term Debt, and Common Stock will remain the same as in 2019. 1. Using the information given and percentage of sales analysis techniques where appropriate, prepare a pro forma income statement and balance sheet forthe next yea r. Since both 2018 and 2019 nancial statements are given, use the average percentage of sales from both years. Calculate the amount of nancing needed for the balance sheet. 2. Create a chart of sales by year for all years, including your pro fom'la estimate. 3. Add a trend line. 4. Create a scatter plot of sales vs. cogs. Add a trend line. 5. Regress cogs against sales {do not include the 2010 estimates]. 5. Using your sales trendline and annual sales data forecast the sales level in the next 3 years {3 years after the year with 4.3M in sales}. Forecast using the trend line as well as at least one of the following: trend, Iinest, regression. Central Perks Inc. Income Statement For the Year Ended Dec. 31, 2019 2019 2018 Sales 53.946,250 5 3,517,800 Cost of Goods Sold $3.331,250 5 2,935,600 Gross Profit $ 615,000 $ 582,200 Selling and G&A Expenses $ 330,300 $ 240,000 Fixed Expenses 5 100,000 S 100.000 Depreciation Expense S 20.000 18.900 EBIT $ 164,700 $ 223,300 Interest Expense S 76.000 62,500 Earnings Before Taxes S 88,700 $ 160,800 Taxes S 35,480 5 64.320 Net Income 53,220 $ 96.480 Notes: Tax Rate 40% Sales history Revenue COGS Forecast 2015 $1,937,795 5 1,609,455 2016 52,150,952 5 1,738,086 2017 52.409,066 5 2,042.210 2018 $3,517,800 5 2,935,600 2019 53.946,250 $ 3,331,250Central Perks Inc. Balance Sheet As of Dec. 31, 2019 Assets 2019 2018 Cash and Equivalents 53,300 59,040 Accounts Receivable 412,050 359.980 Inventory 856.900 S 733.080 Total Current Assets 5 1,322.250 $ 1,152,100 Plant & Equipment 540.175 503.275 Accumulated Depreciation 166.200 146.200 Net Fixed Assets 373.975 5 357.075 Total Assets $ 1.696.225 $ 1.509.175 Liabilities and Owner's Equity Accounts Payable 179,580 149.240 Short-term Notes Payable 230,625 S 205,000 Other Current Liabilities 143.500 S 139.400 Total Current Liabilities 553,705 493.640 Long-term Debt 435.227 331.518 Total Liabilities 988.932 825,158 Common Stock 471.500 S 471,500 Retained Earnings 231,638 208.862 Total Shareholder's Equity 703.138 680.362 Total Liabilities and Owner's Equity $ 1,692,070 $ 1,505,520Central Perks Inc. Statement of Cash Flows For the Year Ended Dec. 31, 2019 ($ in 000's) Cash Flows from Operations Net Income 53.220 Depreciation Expense 20,000 Change in Accounts Receivable (52,070) Change in Inventories (123,820) Change in Accounts Payable 30.340 Change in Other Current Liabilities 4.100 Total Cash Flows from Operations S (68,230) Cash Flows from Investing Change in Plant & Equipment $ (36,900) Total Cash Flows from Investing S (36,900) Cash Flows from Financing Change in Short-term Notes Payable 25.625 Change in Long-term Debt 103,710 Change in Common Stock Cash Dividends Paid to Shareholders (30,445) Total Cash Flows from Financing CO 98,890 Net Change in Cash Balance S (6,240)