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Rakuten had the following sales in the past: Year 2017 2018 2019 2020 Sales ($ million) 538 510.83 658.69 631.74 Income statement for 2020:
Rakuten had the following sales in the past: Year 2017 2018 2019 2020 Sales ($ million) 538 510.83 658.69 631.74 Income statement for 2020: Line item Amount (S million) Sales 631.74 - COGS 252.7 - SG&A =Gross profit - Depreciation =Operating profit 379.05 126.35 63.17 189.52 - Interest 75 =Taxable income 114.52 - Taxes = Net income Interest expenses and the average tax rate are expected to stay constant. 32.07 82.46 Part 1 BAttempt 1/10 for 10 pts.. What was the compound (average) annual growth in sales from 2017 to 2020? 3+ decimals Submit Part 2 BAttempt 1/10 for 10 pts. Prepare a pro forma income statement for 2021 using the percent-of-sales method. Assume that sales grow at the same rate as in the past. What is the expected net income (not sales)? 0+ decimals
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