Q. Based on the forecast assumptions provided, prepare forecasted financial statements for the target company for the next 10 years and the terminal period.

Forecast assumptions:

Revenue growth is expected to be 10% per annum for the next 5 years, 7% per annum for the 5 years after that and then 5% per annum in the terminal period.

Cost of Sales and Operating Expenses continue as the same proportion of Revenue in 2019.

Interest Expense continues as the same proportion of the sum of debts (current and non-current debts) as in 2019.

Income Tax Expense continues as the same proportion of EBIT in 2019.

Other Expense remains the same as in 2019.

Cash and Receivables continue as the same proportion of Revenue in 2019.

Inventory and Accounts Payable continue as the same proportion of Cost of Sales in 2019.

Other Current Assets, Other Current Liabilities, and Other Non-Current Liabilities remain the same as in 2019.

PP&E grows at 10% per year.

Intangibles remain the same as in 2019.

Non-current Debt continues as the same proportion of Total Assets in 2019.

Disregard Deferred Tax Assets and Deferred Tax Liabilities.

The Dividend Payout Ratio is expected to be 75%.

Use Current Debt as the 'plug'.

Please refer to the excel attachment and the image attachment for relevant figures.