please show the steps

start from question 3. plz steps

2. Create a series of common sized income statements for all prior years. 3. Develop pro forma income statements for the next 5 years using the Revenue data from exhibit 3 & 4. 4. Estimate Free Cash Flow for the next 5 years assuming depreciation of 5% of sales and capital expenditures of 4% of Sales. 5. Construct a pie chart of the firm's capital structure (market values) and calculate the weighted average cost of capital assuming the followingdata: a. Market Value of Equity: 108 B b. Beta: 1.2 C. Expected Return on the market: 9% d. Risk Free rate: 1.8% e. Assume a marginal tax rate of 33% f. Use the data from exhibit 4 for the firm's debt 6. Calculate the value of the firm using the following assumptions: a. Terminal growth rate: 3% b. Terminal weighted average cost of capital: 11% 7. Construct Pro forma balance sheets and statements of cash flow for the next 5 years. 8. The firm is considering issuing a 10 year 3 Billion note denominated in Swiss Franc (CHF) in 2019. The exchange rate is $1 = 1CHF. The proceeds will be used to build a factory in the U.S. The coupon rate is expected to be 1.5%. The factory will produce a new product to be sold in the U.S. Product Dis expected to add $1 billion in sales per year starting in 2020 with a 40% cost of goods sold. Additionally, selling, general, and administrative costs are expected to increase by $90 million per year. Please illustrate the impact to firm's overall value well as the change in the capital structure and cost of capital. Income Statements (USD in millions) Revenue Cost of revenue Gross profit Research and development Sales, General and administrative Restructuring, merger and acquisition Operating income Interest Expense Income before taxes Provision for income taxes Net income 2015 2016 2017 2018 2019 $ 43,218.00 $ 46,061.00 $ 48,607.00 $ 47,142.00 $ 49,161.00 $(16,682.00) $(17,852.00) $(19,167.00) $(19,373.00) $(19,480.00) $ 26,536.00 $ 28,209.00 $ 29,440.00 $ 27,769.00 $ 29,681.00 $ (5,823.00) $ (5,488.00) $ (5,942.00) $ (6,294.00) $ (6,207.00) $(11,720.00) $(11,969.00) $(11,802.00) $(11,437.00) $(11,861.00) $ 1799.00) $ (304.00) $ (105.00) $ (418.00) $ (484.00) $ 8,194.00 $ 10,448.00 $ 11,591.00 $ 9,620.00 $ 11,129.00 $ (628.00) $ (596.00) $ (583.00) $ (564.00) $ (566.00) $ 7,566.00 $9,852.00 $ 11,008.00 $9,056.00 $ 10,563.00 $(1,335.00) $ (2,118.00) $ (1,244.00) $ (1,862.00) $ (2,220.00) $ 6,231.00 $7,734.00 $9,764.00 $ 7,194.00 $8,343.00 EXHIBIT 2 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $ 12,427.00 Accumulated Depreciation $ (9,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets Total liabilities and stockholders' equity $ 63,748.00 $ 63,748.00 EXHIBIT 1 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units 315 318 321 325 328 Price per Unit 12.67 12.79 12.92 E 13.05 E 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY2023 FY2024 Pound (in dollars per Pound) $ 140 $ 1.42 $ 1.44 $ 1.46 $ 1.48 Yen (in Yen perdollar) Y 112.00 114.00 116.00 X 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 X 2,130.00 Y 2,132.002,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 223 Price per Unit $ 19.00 $ 19.19 $ 19.38 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 157 164 Price per Unit 3333 E 33.99 34.67 E 35.37 36.07 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit E 510 6.65 528 14.47 546 14.76 565 15.05 E 585 15.35 Japanese Division (Yen) Japanese Division (Yen) Units 95 98 102 109 Price per Unit X 5,598.88 X 5,654.87X5,711.42 X 5,768.53 X5,826.22 105 Units 400 404 408 412 416 Price per Unit X 1,117.76X1,161.61X1,165.20 X 1,189.671,214.65 U.S. Division (Dollar) 658 Units Price per Units 620 9.98 $ 639 10.19 $ 677 10.62 $ U.S. Division (Dollar) Units Price per Unit $ 698 10.85 205 49.99 $ 215 49.99 $ 226 49.99 $ 237 51.00 $ 249 52.00 10.40 $ EXHIBIT 3 To construct the pro forma income statements, please us the following data. The products are all produced in the United States. Please use the following data below to calculate the weighted average cost of goods sold. Product A target: 38% (as a percent of sales) Product B target: 41% (as a percent of sales) Product C target: 39% (as a percent of sales) Please assume the cost (as a percent of sales) for the following items will remain the same as year 2017: Research and development Sales, General and administrative Restructuring, merger and acquisition Please assume an average tax rate of 21%. The Short-Term debt has a cost of .5%. The company has the following long term debt outstanding. Debt Currency Yield to Maturity Coupon 2.010% GBP Face Value (local fx) f 1,000.00 N/A 2.010% USD 1.691% 1.691% Maturity Amount (USD) 2/20/2023 $ 1,400.00 5/1/2025 $ 5,000.00 7/1/2026 $ 4,000.00 1/1/2027 $ 4,057.00 2/20/2028 $ 7,000.00 JPY 1.210% 1.210% 448,000.00 N/A 5,000.00 USD 3.246% 3.246% GBP 3.625% 3.625% EXHIBIT 4 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units 315 318 321 325 328 Price per Unit 12.67 12.79 12.92 E 13.05 E 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY2023 FY2024 Pound (in dollars per Pound) $ 140 $ 1.42 $ 1.44 $ 1.46 $ 1.48 Yen (in Yen perdollar) Y 112.00 114.00 116.00 X 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 X 2,130.00 Y 2,132.002,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 223 Price per Unit $ 19.00 $ 19.19 $ 19.38 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 157 164 Price per Unit 3333 E 33.99 34.67 E 35.37 36.07 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit E 510 6.65 528 14.47 546 14.76 565 15.05 E 585 15.35 Japanese Division (Yen) Japanese Division (Yen) Units 95 98 102 109 Price per Unit X 5,598.88 X 5,654.87X5,711.42 X 5,768.53 X5,826.22 105 Units 400 404 408 412 416 Price per Unit X 1,117.76X1,161.61X1,165.20 X 1,189.671,214.65 U.S. Division (Dollar) 658 Units Price per Units 620 9.98 $ 639 10.19 $ 677 10.62 $ U.S. Division (Dollar) Units Price per Unit $ 698 10.85 205 49.99 $ 215 49.99 $ 226 49.99 $ 237 51.00 $ 249 52.00 10.40 $ EXHIBIT 3 pound Eld To construct the pro forma income statements, please us the following data. The products are all produced in the United States. Please use the following data below to calculate the weighted average cost of goods sold. Product A target: 38% (as a percent of sales) Product B target: 41% (as a percent of sales) Product C target: 39% (as a percent of sales) Please assume the cost (as a percent of sales) for the following items will remain the same as year 2017: Research and development Sales, General and administrative Restructuring, merger and acquisition Please assume an average tax rate of 21%. The Short-Term debt has a cost of .5%. pon The company has the following long term debt outstanding, mutiple for pons blc Eld divide by yen dly dollar Debt Currency Yield to Maturity Coupon GBP Face Value (local fx) 1,000.00 N/A 2.010% 2.010% USD 1.691% 1.691% Maturity Amount (USD) 2/20/2023 $ 1,400.00 5/1/2025 $ 5,000.00 7/1/2026 $ 4,000.00 1/1/2027 $ 4,057.00 2/20/2028 $ 7,000.00 JPY 1.210% 1.210% 448,000.00 N/A USD 3.246% 3.246% GBP f 5,000.00 3.625% 3.625% EXHIBIT 4 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $ 12,427.00 Accumulated Depreciation $ (9,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets Total liabilities and stockholders' equity $ 63,748.00 $ 63,748.00 EXHIBIT 1 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $12,427.00 Accumulated Depreciation $ 19,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets $ 63,748.00 Total liabilities and stockholders' equity $63,748.00 EXHIBIT 1 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY2024 U.K. Division Pounds) Units 315 318 326 321 12.92 325 12.05 E Price per Unit 12.57 E 12.79 1319 Exchange Rate Assumptions FY2020 FY2021 FY20223 FY2023 FY2024 Pound in dollars per Pound) $ 140 $ 142 S 1.44 $ 146 S 1:48 Yen (in Yen per dollar) X 112.00 114.00 Y 116.00 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 Price per Unit 42,128.00 X 2.130.00 Y 2,132.00 2,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar Units 210 213 216 220 123 Price per Unit $ 19.00 $ 19.19 $ 1938 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 151 164 Price per Unit [ 3333 E 33.99 E3467 E 35.37 36.07 FY 2020 FY 2021 FY202 FY2023 FY 2024 U.K. Division (Pounds) Units Price per Unit 510 6,65 f 528 14.47 E 546 14.76 E 565 15.05 585 1535 Japanese Division (Yen Japanese Division (Yen) Units 102 105 109 Price per Unit 5,598.88 Y5,654.87 X5,711 425,76853 X5 826.22 Units 400 404 412 416 Price per Unit 1,117.76X1,161.61 Y 1,165.20 Y1,189.67X1,214.65 U.S. Division Dollar) U.S. Division (Dollar) Units Price per Units 237 51.00 $ 215 49.99 $ 249 52.00 226 49.99 $ 205 49.99 $ 677 10.62 $ 658 10.40 $ 620 9.99 $ Units Price per Units 698 10.85 639 10.19 $ EXHIBIT 3 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit 315 318 323 325 399 12.67 E 12.79 1292 13.05 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY 2023 FY2024 Pound in dollars per Pound) S 140 S 1.42 S 1.44 $ 1.46 $ 148 Yenfin Yenperdollar) 112.00 Y 114.00 Y 116,00 Y 118.00 Y 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 Y 2,130.00 Y 2,132.00 2,133.00 2,134,00 223 19.77 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 Price per Units 19.00 19.19 $ 19.38 $ 19.58 Product C FY 2020 FY 2021 FY 2022 FY 2021 U.K. Division (Pounds) Units 149 146 151 157 Price per Unit 33.33 33.99 E 34.67 35.37 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 FY 2024 U.K. Division (Pounds) Units Price per Unit 510 6.65 528 14.47 E 546 565 14.76 15.05 585 15.35 164 36.07 Japanese Division (Yen) 416 Units 400 404 408 412 Price per Unit 1,117.76X1,161.61 X1,165.20 1,189.67X1,214.65 Japanese Division (Yen) Units 95 98 102 105 109 Price per Unit 5,598.88 X 5,654.87 X 5,711.42X5,768.53 X5,826.22 U.S. Division (Dollar) Units Price per Unit 620 9.98 639 10.19 $ 658 677 698 10.40 $ 10.62 $ 10.85 U.S. Division (Dollar) Units Price per Unit $ 205 49.99 $ 215 226 237 249 49.99 $ 49.99 $ 51.00 $ 52.00 EXHIBIT 3 2. Create a series of common sized income statements for all prior years. 3. Develop pro forma income statements for the next 5 years using the Revenue data from exhibit 3 & 4. 4. Estimate Free Cash Flow for the next 5 years assuming depreciation of 5% of sales and capital expenditures of 4% of Sales. 5. Construct a pie chart of the firm's capital structure (market values) and calculate the weighted average cost of capital assuming the followingdata: a. Market Value of Equity: 108 B b. Beta: 1.2 C. Expected Return on the market: 9% d. Risk Free rate: 1.8% e. Assume a marginal tax rate of 33% f. Use the data from exhibit 4 for the firm's debt 6. Calculate the value of the firm using the following assumptions: a. Terminal growth rate: 3% b. Terminal weighted average cost of capital: 11% 7. Construct Pro forma balance sheets and statements of cash flow for the next 5 years. 8. The firm is considering issuing a 10 year 3 Billion note denominated in Swiss Franc (CHF) in 2019. The exchange rate is $1 = 1CHF. The proceeds will be used to build a factory in the U.S. The coupon rate is expected to be 1.5%. The factory will produce a new product to be sold in the U.S. Product Dis expected to add $1 billion in sales per year starting in 2020 with a 40% cost of goods sold. Additionally, selling, general, and administrative costs are expected to increase by $90 million per year. Please illustrate the impact to firm's overall value well as the change in the capital structure and cost of capital. Income Statements (USD in millions) Revenue Cost of revenue Gross profit Research and development Sales, General and administrative Restructuring, merger and acquisition Operating income Interest Expense Income before taxes Provision for income taxes Net income 2015 2016 2017 2018 2019 $ 43,218.00 $ 46,061.00 $ 48,607.00 $ 47,142.00 $ 49,161.00 $(16,682.00) $(17,852.00) $(19,167.00) $(19,373.00) $(19,480.00) $ 26,536.00 $ 28,209.00 $ 29,440.00 $ 27,769.00 $ 29,681.00 $ (5,823.00) $ (5,488.00) $ (5,942.00) $ (6,294.00) $ (6,207.00) $(11,720.00) $(11,969.00) $(11,802.00) $(11,437.00) $(11,861.00) $ 1799.00) $ (304.00) $ (105.00) $ (418.00) $ (484.00) $ 8,194.00 $ 10,448.00 $ 11,591.00 $ 9,620.00 $ 11,129.00 $ (628.00) $ (596.00) $ (583.00) $ (564.00) $ (566.00) $ 7,566.00 $9,852.00 $ 11,008.00 $9,056.00 $ 10,563.00 $(1,335.00) $ (2,118.00) $ (1,244.00) $ (1,862.00) $ (2,220.00) $ 6,231.00 $7,734.00 $9,764.00 $ 7,194.00 $8,343.00 EXHIBIT 2 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $ 12,427.00 Accumulated Depreciation $ (9,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets Total liabilities and stockholders' equity $ 63,748.00 $ 63,748.00 EXHIBIT 1 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units 315 318 321 325 328 Price per Unit 12.67 12.79 12.92 E 13.05 E 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY2023 FY2024 Pound (in dollars per Pound) $ 140 $ 1.42 $ 1.44 $ 1.46 $ 1.48 Yen (in Yen perdollar) Y 112.00 114.00 116.00 X 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 X 2,130.00 Y 2,132.002,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 223 Price per Unit $ 19.00 $ 19.19 $ 19.38 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 157 164 Price per Unit 3333 E 33.99 34.67 E 35.37 36.07 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit E 510 6.65 528 14.47 546 14.76 565 15.05 E 585 15.35 Japanese Division (Yen) Japanese Division (Yen) Units 95 98 102 109 Price per Unit X 5,598.88 X 5,654.87X5,711.42 X 5,768.53 X5,826.22 105 Units 400 404 408 412 416 Price per Unit X 1,117.76X1,161.61X1,165.20 X 1,189.671,214.65 U.S. Division (Dollar) 658 Units Price per Units 620 9.98 $ 639 10.19 $ 677 10.62 $ U.S. Division (Dollar) Units Price per Unit $ 698 10.85 205 49.99 $ 215 49.99 $ 226 49.99 $ 237 51.00 $ 249 52.00 10.40 $ EXHIBIT 3 To construct the pro forma income statements, please us the following data. The products are all produced in the United States. Please use the following data below to calculate the weighted average cost of goods sold. Product A target: 38% (as a percent of sales) Product B target: 41% (as a percent of sales) Product C target: 39% (as a percent of sales) Please assume the cost (as a percent of sales) for the following items will remain the same as year 2017: Research and development Sales, General and administrative Restructuring, merger and acquisition Please assume an average tax rate of 21%. The Short-Term debt has a cost of .5%. The company has the following long term debt outstanding. Debt Currency Yield to Maturity Coupon 2.010% GBP Face Value (local fx) f 1,000.00 N/A 2.010% USD 1.691% 1.691% Maturity Amount (USD) 2/20/2023 $ 1,400.00 5/1/2025 $ 5,000.00 7/1/2026 $ 4,000.00 1/1/2027 $ 4,057.00 2/20/2028 $ 7,000.00 JPY 1.210% 1.210% 448,000.00 N/A 5,000.00 USD 3.246% 3.246% GBP 3.625% 3.625% EXHIBIT 4 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units 315 318 321 325 328 Price per Unit 12.67 12.79 12.92 E 13.05 E 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY2023 FY2024 Pound (in dollars per Pound) $ 140 $ 1.42 $ 1.44 $ 1.46 $ 1.48 Yen (in Yen perdollar) Y 112.00 114.00 116.00 X 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 X 2,130.00 Y 2,132.002,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 223 Price per Unit $ 19.00 $ 19.19 $ 19.38 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 157 164 Price per Unit 3333 E 33.99 34.67 E 35.37 36.07 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit E 510 6.65 528 14.47 546 14.76 565 15.05 E 585 15.35 Japanese Division (Yen) Japanese Division (Yen) Units 95 98 102 109 Price per Unit X 5,598.88 X 5,654.87X5,711.42 X 5,768.53 X5,826.22 105 Units 400 404 408 412 416 Price per Unit X 1,117.76X1,161.61X1,165.20 X 1,189.671,214.65 U.S. Division (Dollar) 658 Units Price per Units 620 9.98 $ 639 10.19 $ 677 10.62 $ U.S. Division (Dollar) Units Price per Unit $ 698 10.85 205 49.99 $ 215 49.99 $ 226 49.99 $ 237 51.00 $ 249 52.00 10.40 $ EXHIBIT 3 pound Eld To construct the pro forma income statements, please us the following data. The products are all produced in the United States. Please use the following data below to calculate the weighted average cost of goods sold. Product A target: 38% (as a percent of sales) Product B target: 41% (as a percent of sales) Product C target: 39% (as a percent of sales) Please assume the cost (as a percent of sales) for the following items will remain the same as year 2017: Research and development Sales, General and administrative Restructuring, merger and acquisition Please assume an average tax rate of 21%. The Short-Term debt has a cost of .5%. pon The company has the following long term debt outstanding, mutiple for pons blc Eld divide by yen dly dollar Debt Currency Yield to Maturity Coupon GBP Face Value (local fx) 1,000.00 N/A 2.010% 2.010% USD 1.691% 1.691% Maturity Amount (USD) 2/20/2023 $ 1,400.00 5/1/2025 $ 5,000.00 7/1/2026 $ 4,000.00 1/1/2027 $ 4,057.00 2/20/2028 $ 7,000.00 JPY 1.210% 1.210% 448,000.00 N/A USD 3.246% 3.246% GBP f 5,000.00 3.625% 3.625% EXHIBIT 4 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $ 12,427.00 Accumulated Depreciation $ (9,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets Total liabilities and stockholders' equity $ 63,748.00 $ 63,748.00 EXHIBIT 1 BALANCE SHEET (USD in millions) Year End 2019 Assets Current assets Liabilities Current liabilities Short-term debt $ 3,897.00 Non-current liabilities Cash and cash equivalents $ 6,877.00 Short-term investments $ 53,539.00 Total current assets $ 60,416.00 Long-term debt $ 21,457.00 $ 25,354.00 Total liabilities Non-current assets Gross property, plant and equipment $12,427.00 Accumulated Depreciation $ 19,095.00) Total non-current assets $ 3,332.00 Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 22,340.00 $ 16,054.00 $ 38,394.00 Total assets $ 63,748.00 Total liabilities and stockholders' equity $63,748.00 EXHIBIT 1 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY2024 U.K. Division Pounds) Units 315 318 326 321 12.92 325 12.05 E Price per Unit 12.57 E 12.79 1319 Exchange Rate Assumptions FY2020 FY2021 FY20223 FY2023 FY2024 Pound in dollars per Pound) $ 140 $ 142 S 1.44 $ 146 S 1:48 Yen (in Yen per dollar) X 112.00 114.00 Y 116.00 118.00 120.00 Japanese Division (Yen) Units 305 308 311 314 Price per Unit 42,128.00 X 2.130.00 Y 2,132.00 2,133.00 X 2,134.00 (Units in Millions) Product A U.S. Division (Dollar Units 210 213 216 220 123 Price per Unit $ 19.00 $ 19.19 $ 1938 $ 19.58 $ 19.77 Product C FY 2020 FY 2021 FY 2022 FY 2021 FY 2024 U.K. Division (Pounds) Units 140 146 151 151 164 Price per Unit [ 3333 E 33.99 E3467 E 35.37 36.07 FY 2020 FY 2021 FY202 FY2023 FY 2024 U.K. Division (Pounds) Units Price per Unit 510 6,65 f 528 14.47 E 546 14.76 E 565 15.05 585 1535 Japanese Division (Yen Japanese Division (Yen) Units 102 105 109 Price per Unit 5,598.88 Y5,654.87 X5,711 425,76853 X5 826.22 Units 400 404 412 416 Price per Unit 1,117.76X1,161.61 Y 1,165.20 Y1,189.67X1,214.65 U.S. Division Dollar) U.S. Division (Dollar) Units Price per Units 237 51.00 $ 215 49.99 $ 249 52.00 226 49.99 $ 205 49.99 $ 677 10.62 $ 658 10.40 $ 620 9.99 $ Units Price per Units 698 10.85 639 10.19 $ EXHIBIT 3 The company offers 3 products sold in three markets. Please use the data below to develop the sales forecast for the pro forma income statements. Sales Forecast Assumptions Product B FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 U.K. Division (Pounds) Units Price per Unit 315 318 323 325 399 12.67 E 12.79 1292 13.05 13.18 Exchange Rate Assumptions FY2020 FY2021 FY20222 FY 2023 FY2024 Pound in dollars per Pound) S 140 S 1.42 S 1.44 $ 1.46 $ 148 Yenfin Yenperdollar) 112.00 Y 114.00 Y 116,00 Y 118.00 Y 120.00 Japanese Division (Yen) Units 305 308 311 314 317 Price per Unit 2,128.00 Y 2,130.00 Y 2,132.00 2,133.00 2,134,00 223 19.77 (Units in Millions) Product A U.S. Division (Dollar) Units 210 213 216 220 Price per Units 19.00 19.19 $ 19.38 $ 19.58 Product C FY 2020 FY 2021 FY 2022 FY 2021 U.K. Division (Pounds) Units 149 146 151 157 Price per Unit 33.33 33.99 E 34.67 35.37 FY 2020 FY 2021 FY 202 FY 2023 FY 2024 FY 2024 U.K. Division (Pounds) Units Price per Unit 510 6.65 528 14.47 E 546 565 14.76 15.05 585 15.35 164 36.07 Japanese Division (Yen) 416 Units 400 404 408 412 Price per Unit 1,117.76X1,161.61 X1,165.20 1,189.67X1,214.65 Japanese Division (Yen) Units 95 98 102 105 109 Price per Unit 5,598.88 X 5,654.87 X 5,711.42X5,768.53 X5,826.22 U.S. Division (Dollar) Units Price per Unit 620 9.98 639 10.19 $ 658 677 698 10.40 $ 10.62 $ 10.85 U.S. Division (Dollar) Units Price per Unit $ 205 49.99 $ 215 226 237 249 49.99 $ 49.99 $ 51.00 $ 52.00 EXHIBIT 3