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Its your first day on the job at Webco, and youve come across a set of seemingly random forecasted financial information. Your boss asks you

Its your first day on the job at Webco, and youve come across a set of seemingly random forecasted financial information. Your boss asks you to make sense of it all (and you are not quite sure that you even need all the data). (a) Create an Income Statement for 2016 and 2017with the following captions: Sales Costs Other expenses Depreciation EBIT Interest EBT Taxes Net Income Dividends Addition to Retained Earnings (b) Create a Balance Sheet for 2016 and 2017. (c) Provide a plausible explanation for why Shareholders Equity falls in 2017 despite the profit retained (Addition to Retained Earnings). (

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