Pleace answer question 3!

Picture 1 is exhibit 11.16 + questin 3.

It ends with You can just compute the historical ratios as .... a percentage of either revenue or cost of goods sold and use those ratios for the forecast.

Picture 2 is exhibit 11.11

Picture 3. It shows question 2.

Picture 4 is exhibit 11.4.

You will not need more information than this :)

256 FORECASTING PERFORMAN th Feracast Forecast Forecau Coet of sale Selting eusti Operating pro 5. 5 15.0 874 74.1 20.2) (22. 02 515 Earmings before Taxes Net incone Dividends Prioe Cerreat Ferecast Forecast Forecast Forecast Forecast r year1 year2 year 3 year 4 year 5 Balance sheet 220 23.8 Excess cash and marketable securioies 3852 3775 Working cash Accounts receivable Current assets Property plant, and equipment 1100 1188 1238 1337 641.0 6539 Equity investments Total assets 4400 4752 3200 3200 1.401.0 1.4481 Liabilities and equity Accounts payable Short-term debt Accrued expenses Current liabilities 1238 1337 00 90.0 8.0 95.0 Long-term debt Newly issued debt Common stock 3018 3187 21002100 1500 150.0 Retained earmings Liabilities and equity 7392 720.4 401.0 1,449 3. Using the methodology outlined in Exhibit 11.11, forecast the operating items on the next five years of balance sheets for PartsCo. Forecast each bal- ance sheet item as a function of revenues, except inventory a payable, which should be forecast as a function of cost of sales. Your forecast should be consistent with the revenues and cost of sales forecast in Ques- tion 2. (Note that Exhibit 11.11 converts figures to number of days. You do not need to go this extra step. You can just compute the historical ratios as 256 FORECASTING PERFORMAN th Feracast Forecast Forecau Coet of sale Selting eusti Operating pro 5. 5 15.0 874 74.1 20.2) (22. 02 515 Earmings before Taxes Net incone Dividends Prioe Cerreat Ferecast Forecast Forecast Forecast Forecast r year1 year2 year 3 year 4 year 5 Balance sheet 220 23.8 Excess cash and marketable securioies 3852 3775 Working cash Accounts receivable Current assets Property plant, and equipment 1100 1188 1238 1337 641.0 6539 Equity investments Total assets 4400 4752 3200 3200 1.401.0 1.4481 Liabilities and equity Accounts payable Short-term debt Accrued expenses Current liabilities 1238 1337 00 90.0 8.0 95.0 Long-term debt Newly issued debt Common stock 3018 3187 21002100 1500 150.0 Retained earmings Liabilities and equity 7392 720.4 401.0 1,449 3. Using the methodology outlined in Exhibit 11.11, forecast the operating items on the next five years of balance sheets for PartsCo. Forecast each bal- ance sheet item as a function of revenues, except inventory a payable, which should be forecast as a function of cost of sales. Your forecast should be consistent with the revenues and cost of sales forecast in Ques- tion 2. (Note that Exhibit 11.11 converts figures to number of days. You do not need to go this extra step. You can just compute the historical ratios as