In this Assignment, your job is to construct pro forma balance sheet (Exercise 1) and pro forma income statement (Exercise 2). You have to use percent of sales method. The cells where you should type in your answers are marked yellow.

You have not only to construct the financials of the firm for 2018, but also briefly explain the principles you follow (explanations should be also in Excel file).

Assumptions 1. Sales will grow 1,012% Next year Ex 1: Fill the numbers for 2018 based on percent of sales method Answer the question below Income statement 2017 2018 Sales Cost of sales (not incl depreciation) EBITDA 1000 500 500 200 Depreciation EBIT 300 Interest expenses Pretax income 250 Income tax (35%) Net Income 87,5 162,5 On how much (%) the net income will grow next year