Presented is the income statement and balance sheet for PartsCo, a $1.2 billion supplier of machinery parts. The company is expected to increase revenues by 8 percent annually for the next five years. Forecast the next five years of income statements for PartsCo. Assume that the next five years forecast ratios are identical to this years ratios. Forecast depreciation as a percentage of the prior years property, plant, and equipment. Forecast interest as a percentage of the prior years total debt.

$ million Income statement Revenues Cost of sales Selling costs Depreciation Operating profit Prior Current Forecast Forecast Forecast Forecast Forecast year year year 1 year 2 year 3 year 4 year 5 1,100.0 1.188.0 (825.0) (891.0) (165.0) (178.21 127.61 129.7) 82.4 89.1 115.0) Interest expense Earnings before taxes (15.0) 74.1 67.4 Taxes Net income (20.21 47.2 122.21 51.9 Dividends 19.0 21.0 Prior Current Forecast Forecast Forecast Forecast Forecast year year 1 year 2 year 3 year 4 year 5 year Balance sheet Assets Working cash Excess cash and marketable securities Accounts receivable Inventory Current assets 22.0 395.2 110.0 123.8 641.0 238 377.6 118.8 133.7 653.9 Property, plant, and equipment Equity investments Total assets 440.0 4752 320.0 320.0 1,401.0 1.449.1 Liabilities and equity Accounts payable Short-term debt Accrued expenses Current liabilities 123.8 90.0 88.0 301.8 133.7 90.0 95.0 318.7 210.0 210.0 Long-term debt Newly issued debt Common stock Retained earnings Liabilities and equity 150.0 739.2 1,401.0 150.0 770.4 1,449.1