Prepare forecasts of its income statement, balance sheet, and statement of cash flows for 20x7 under the following assumptions:

a.All financial ratios remain at 20x6 levels.

b.Kodak will not record restructuring costs for 20x7.

c.Taxes payable are at the 20x6 level of $544 million.

d.Depreciation expense charged to SG&A is $765 million and $738 million for 20x6 and 20x5, respectively.

e.Gross PPE is $12,982 million and $12,963 million for 20x6 and 20x5, respectively.

f.Projected current maturities of long-term debt are $13 million for 20x7.

g.Capital expenditures for 20x6 and 20x5 are $1,047 and $783, respectively.

INCOME STATEMENT For Year Ended December 31 (in millions) 20x6 20x5 20x4 Net sales . . . .. .. $13,234 $13,994 $14,089 Cost of goods sold. . .. 8,670 8,375 8,086 Gross profit. . . ... . 4.564 5,619 6,003 Selling, general, and administrative expenses . . 2,781 2,665 2,846 Research and development costs . .. . . 779 784 817 Restructuring costs (credits) and other. . . . .. 659 (44) 350 Earnings from operations . . .. . 345 2,214 1,990 Interest expense . . . . 219 178 142 Other income (charges) . . . .. (18) 96 261 Earnings before income taxes . . 108 2,132 2,109 Provision for income taxes. . . . 32 725 717 Net earnings . . . . 76 $ 1,407 $ 1,392BALAH 6E SHEET At December 31 tin millions. except share and per share data} 20:3 Assets Current assets ash and cash equiyalents ................................................ $ 443 Receivables. net ........................................................ 2.332 inventories. net ......................................................... 1.132 Deferred income taxes .................................................... 521 Either current assets ..................................................... 243 Total current assets ................................................... 4.633 Property. plant. and equipment. net ......................................... 5.653 Goodwill. net ........................................................... 343 Either longterm assets ................................................... 2.322 Total assets .......................................................... 313.362 Liabilities and shareholders\" equity Eurrent liabilities Accounts payable and other current liabilities ................................. $ 3.226 Shortterm borrowings .................................................... 1.323 Current portion ot longterm debt ........................................... 156 Accrued income taxes .................................................... 544 Total current liabilities ................................................. 5.354 Long-term debt. net of current portion ....................................... 1.666 Postemploynient liabilities ................................................ 2.223 Either long-term liabilities ................................................. 223 Total liabilities ....................................................... 13.463 Shareholders' equity oinmon stock. $2.53 paryalue 353.333.3311 shares authorized; issued 331.232.2611 shares in 2316 and 23:15: 233.323.2111 and 233434.266 shares outstanding in 23:16 and 23:15 ............. 323 Additional paid in capital .................................................... 343 Retained earnings ......................................................... 2.431 Accumulated othercomprehensiye loss ......................................... 15321 3.661 Treasury stool-1. at cost; 133.363.1153 shares in 23:16 and 133333.434 shares in 2315 ..... [5.262] Total shareholders' equity ................................................. 2.334 Total liabilities and shareholders equity ...................................... 1213.362 20:5 3 246 2.653 1.213 525 233 5.431 5.313 342 1.355 314.212 :1 sons aosa us one 6.215 1.166 2.222 631 111.234 323 321 2.363 14321 3.236 15.3331 3.423 314.212 BALAH 6E SHEET At December 31 tin millions. except share and per share data} 20:3 Assets Current assets ash and cash equiyalents ................................................ $ 443 Receivables. net ........................................................ 2.332 inventories. net ......................................................... 1.132 Deferred income taxes .................................................... 521 Either current assets ..................................................... 243 Total current assets ................................................... 4.633 Property. plant. and equipment. net ......................................... 5.653 Goodwill. net ........................................................... 343 Either longterm assets ................................................... 2.322 Total assets .......................................................... 313.362 Liabilities and shareholders\" equity Eurrent liabilities Accounts payable and other current liabilities ................................. $ 3.226 Shortterm borrowings .................................................... 1.323 Current portion ot longterm debt ........................................... 156 Accrued income taxes .................................................... 544 Total current liabilities ................................................. 5.354 Long-term debt. net of current portion ....................................... 1.666 Postemploynient liabilities ................................................ 2.223 Either long-term liabilities ................................................. 223 Total liabilities ....................................................... 13.463 Shareholders' equity oinmon stock. $2.53 paryalue 353.333.3311 shares authorized; issued 331.232.2611 shares in 2316 and 23:15: 233.323.2111 and 233434.266 shares outstanding in 23:16 and 23:15 ............. 323 Additional paid in capital .................................................... 343 Retained earnings ......................................................... 2.431 Accumulated othercomprehensiye loss ......................................... 15321 3.661 Treasury stool-1. at cost; 133.363.1153 shares in 23:16 and 133333.434 shares in 2315 ..... [5.262] Total shareholders' equity ................................................. 2.334 Total liabilities and shareholders equity ...................................... 1213.362 20:5 3 246 2.653 1.213 525 233 5.431 5.313 342 1.355 314.212 :1 sons aosa us one 6.215 1.166 2.222 631 111.234 323 321 2.363 14321 3.236 15.3331 3.423 314.212