Present the Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.

Note: I have been trying to do this for hours now and I really don't understand how to do it.So any insite on how to do this, works too. I know it has something to do with COGS, but I don't even know where to start or how it effects the rest.

MACY'S, INC.
PRO FORMA INCOME SHEET
(millions)
						2013		2014		2015		2016
Net sales.						$27,931		$28,105
Cost of sales						(16725)		(16863)
Gross margin						$11,206		$11,242		$0		$0
Selling, general and administrative expenses						(8,440)		(8,355)
Impairments, store closing costs and other costs						(88)		-87
Operating income.						2,678		2,800		0		0
Interest expense						-390		(395)
Premium on early retirement of debt.								(17)
Interest income.						2		2
Income before income taxes.						2,290		2,390		0		0
Federal, state and local income tax expense..						(804)		(864)
Net income..						$1,486		$1,526		$0		$0
Basic earnings per share						3.93		4.30
Diluted earnings per share						3.86		4.22

MACY'S, INC.
PRO FORMA BALANCE SHEET
(millions)
						2013		2014		2015		2016
ASSETS
Current Assets:
Cash and cash equivalents.						$1,836		$2,246
Receivables..						371		424
Merchandise inventories						5,308		5,516
Prepaid expenses and other current assets.						361		493
Total Current Assets..						7,876		8,679		0		0
Property and Equipment - net..						8,196		7,800
Goodwill.						3,743		3,743
Other Intangible Assets - net.						561		496
Other Assets						615		743
Total Assets						$20,991		$21,461		$0		$0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term debt.						$124		76
Merchandise accounts payable..						1,579		1,693
Accounts payable and accrued liabilities.						2,610		3,109
Income Taxes						355		296
Deferred income taxes..						407		362
Total Current Liabilities..						5,075		5,536		0		0
Long-term Debt						6,806		7,265
Deferred Income Taxes						1,238		1,081
Other Liabilities						1,821		2,201
Shareholders' Equity:
Common stock.						4		4
Additional paid-in capital						3,872		1,048
Accumulated equity						5,108		7,340
Treasury stock..						(2,002)		(1942)
Accumulated other comprehensive loss..						(931)		(1072)
Total Shareholders' Equity..						6,051		5,378		0		0
Total Liabilities and Shareholders' Equity.						$20,991		$21,461		$0		$0