Prepare proforma forecasts of financial statements of Simple, Inc for two years, 2021 and 2022. What are the companys forecasted Net Earnings (profit/loss after tax) and additional financing requirements (overdrafts) in 2021 and in 2022?

Assumptions: in 2021 and 2022, sales will grow at 10% per year, CGS will equal 42% of sales, SGA will equal 48% of sales, DRO and DPO will be maintained at 30 days, while DSI will be maintained at 100 days. All other accounts will be maintained at ratios to sales similar to those during 2020.

Please help me answer this and please use formulas. Thank You!

Simple, Inc. Financial Statements (in $ millions) Fiscal Year Ended Dec. 31 TO FORECAST TO FORECAST 2021 2022 2017 $ 2018 5) (% sales) (% sales) 2019 ($) (% sales Past data Assumptions 2020 estimated Income Statement Tumover Cost of sales Gross profit 303.7 127.7 176.0 100.0 42.0 58.0 330.1 130.9 199.2 100.0 39.7 60.3 374.1 149.0 225.1 100.0 13.33% 39.8 % of sales 60.2 mechanical 15% 39.8096 430.2 171.2 259.0 Operating expenses - excluding exceptional costs - exceptional costs Restructuring costs Net interest expense Profit before tax Tax expense Profit/(loss) after tax 151.4 4.5 16.6 0.1 3.4 8.0 (4.6) 49.9 1.5 5.5 0.0 1.1 2.6 -1.5 166.2 0.0 2.7 1.5 28.8 10.4 18.4 50.3 0.0 0.8 0.5 8.7 3.2 5.6 195.7 11.2 1.0 4.4 12.8 3.5 9.3 52.3 % of sales 3.0 unusual 0.3 unusual 1.2 interest rate 3.4 mechanical 0.9 =pre-taxtax rati 2.5 mechanical 50% 0% 0% 0 9% 216.4 0 0 5.2 37.4 10.2 27.2 27.34% Ordinary dividends Profit/(loss retained 10.9 (15.5) 3.6 -5.1 10.9 7.5 3.3 2.3 10.9 (1.6) 2.9 constant -0.4 mechanical 10.9 16.3 8.69% sales growth interest rate, approximate tax rate 13.33% 9.13% 27.349 Fiscal Year Ended Dec. 31 2017 2018 ($) Balance Sheet (% sales) (% sales) 2019 (5) (% sales 34.0 11.2 19.2 5.8 13.7 Assets Cash Excess cash (PLUG) Accounts receivable Inventories Other current assets Net fixed assets Other assets Total assets 27.8 38.6 12.5 87.8 0.0 200.7 9.2 12.7 4.1 28.9 0.0 66.1 30.3 44.7 15.6 104.7 6.0 220.5 9.2 13.5 4.7 31.7 1.8 66.8 30.3 51.3 17.5 110.6 6.7 230.1 3.7 min level PLUG 8.1 DRO 13.7 DSI 4.7 % of sales 29.6 % of sales 1.8 % of sales 61.5 mechanical 29.6 125.7 4.68% 29.56% 1.79% 13.7 0 34.8 59.0 20.1 127.2 7.7 262.5 26.2 1.90% 3.07% Llabilities and equity Accounts payable Taxes payable Accruals Overdrafts (PLUG) Other current liabilities Long-term liabilities Other liabilities Shareholders' equity Total liabs. and equity 13.0 11.3 10.8 00 0.0 21.6 28.0 1.7 114.3 200.7 4.3 3.7 3.6 00 0.0 7.1 9.2 0.6 37.6 66.1 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 6.2 3.5 4.7 0.1 4.0 11.1 0.3 36.8 66.8 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 230.1 2.9 DPO 1.9% of sales 3.1 % of sales 0.2 PLUG 4.5 % of sales 16.4 DEBT constant 0.1% of sales 32.5 =last year's + IS ret earn 61.5 mechanical 4.52% 12.3 8.2 13.2 9.1 19.4 61.9 0.5 137.9 262.5 0.11% difference 9.1 1. Net earnings 2. Overdrafts 27.2 9.1 base case 27.0949 9.3 TA>TLE TACTLE PLUG OVERDRAFTS Simple, Inc. Financial Statements (in $ millions) Fiscal Year Ended Dec. 31 TO FORECAST TO FORECAST 2021 2022 2017 $ 2018 5) (% sales) (% sales) 2019 ($) (% sales Past data Assumptions 2020 estimated Income Statement Tumover Cost of sales Gross profit 303.7 127.7 176.0 100.0 42.0 58.0 330.1 130.9 199.2 100.0 39.7 60.3 374.1 149.0 225.1 100.0 13.33% 39.8 % of sales 60.2 mechanical 15% 39.8096 430.2 171.2 259.0 Operating expenses - excluding exceptional costs - exceptional costs Restructuring costs Net interest expense Profit before tax Tax expense Profit/(loss) after tax 151.4 4.5 16.6 0.1 3.4 8.0 (4.6) 49.9 1.5 5.5 0.0 1.1 2.6 -1.5 166.2 0.0 2.7 1.5 28.8 10.4 18.4 50.3 0.0 0.8 0.5 8.7 3.2 5.6 195.7 11.2 1.0 4.4 12.8 3.5 9.3 52.3 % of sales 3.0 unusual 0.3 unusual 1.2 interest rate 3.4 mechanical 0.9 =pre-taxtax rati 2.5 mechanical 50% 0% 0% 0 9% 216.4 0 0 5.2 37.4 10.2 27.2 27.34% Ordinary dividends Profit/(loss retained 10.9 (15.5) 3.6 -5.1 10.9 7.5 3.3 2.3 10.9 (1.6) 2.9 constant -0.4 mechanical 10.9 16.3 8.69% sales growth interest rate, approximate tax rate 13.33% 9.13% 27.349 Fiscal Year Ended Dec. 31 2017 2018 ($) Balance Sheet (% sales) (% sales) 2019 (5) (% sales 34.0 11.2 19.2 5.8 13.7 Assets Cash Excess cash (PLUG) Accounts receivable Inventories Other current assets Net fixed assets Other assets Total assets 27.8 38.6 12.5 87.8 0.0 200.7 9.2 12.7 4.1 28.9 0.0 66.1 30.3 44.7 15.6 104.7 6.0 220.5 9.2 13.5 4.7 31.7 1.8 66.8 30.3 51.3 17.5 110.6 6.7 230.1 3.7 min level PLUG 8.1 DRO 13.7 DSI 4.7 % of sales 29.6 % of sales 1.8 % of sales 61.5 mechanical 29.6 125.7 4.68% 29.56% 1.79% 13.7 0 34.8 59.0 20.1 127.2 7.7 262.5 26.2 1.90% 3.07% Llabilities and equity Accounts payable Taxes payable Accruals Overdrafts (PLUG) Other current liabilities Long-term liabilities Other liabilities Shareholders' equity Total liabs. and equity 13.0 11.3 10.8 00 0.0 21.6 28.0 1.7 114.3 200.7 4.3 3.7 3.6 00 0.0 7.1 9.2 0.6 37.6 66.1 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 6.2 3.5 4.7 0.1 4.0 11.1 0.3 36.8 66.8 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 230.1 2.9 DPO 1.9% of sales 3.1 % of sales 0.2 PLUG 4.5 % of sales 16.4 DEBT constant 0.1% of sales 32.5 =last year's + IS ret earn 61.5 mechanical 4.52% 12.3 8.2 13.2 9.1 19.4 61.9 0.5 137.9 262.5 0.11% difference 9.1 1. Net earnings 2. Overdrafts 27.2 9.1 base case 27.0949 9.3 TA>TLE TACTLE PLUG OVERDRAFTS