Question 1 You are a financial manager that wants to know projected cash flows next year for decision-making purposes. Below is some financial statement information that is loosely based on Pfizer (symbol: PFE) for the year ended December 31, 2018: Income Statement (in millions 5) Year Ended December 31, 2018 Sales 53,700 Cost of Sales 9,600 Depreciation 1,500 Amortization 4,900 Gross Income Selling, General, Administrative Expenses Research and Development Other Expenses Interest Expense Pre-Tax Income 11,900 Tax 700 Net Income 11,200 Balance Sheet {in millions 5) Year Ended December 31, 2018 Cash 18,800 Accounts Payable 4,700 Net Receivables 8,000 Short Term Debt 8,800 Inventory 7,500 Other Current Liabilities 18,400 Other Current Assets Current Assets 49,900 Current Liabilities 31,900 Net Property, Plant, Equipment 13,400 Long Term Debt 63,800 Intangible Assets Total Liabilities 95,700 Total Stockholders' Equity 63,700 Total Assets 159,400 Total Liabilities and Equity 159,400 Assume the following for the year ended December 31, 2017: (1) net property, plant, and equipment was $13,900M; (2) intangible assets was $116,800M; and (3) long-term debt was $69,700M. Assume the following when constructing the pro-forma income statement in part (a) of this question: (1) pro-forma amortization expense is calculated using the ratio ofamortization expense in 2018 to intangible assets in 2017 {similar to how you calculate pro-forma depreciation); and (2) other expenses remain constant