Refer to the financial statements of United Parcel Service to answer the following requirements. The following assumptions should be useful:

? UPS's sales forecast for 2018 is $70,000 million.

? Operating expenses and operating profits increase in proportion to sales.

? Investment income and interest expense are unchanged in 2018.

? Income taxes are 25% of pretax earnings.

? Marketable securities and noncurrent investments are unchanged in 2018; all other assets

(except cash) increase in proportion to sales.

? Long-term debt and current maturities of long-term debt are unchanged in 2018; all other li-

abilities increase in proportion to sales.

? Dividends are 50% of net income. Income and dividends are the only changes to stockholders'

equity in 2018

Need income statement forecast for 2018.

Need balance sheet forecast for 2018

PLEASE BREAKOUT EQUATIONS USED TO ACQUIRE EACH ANSWER FOR 2018

UNITED PARCEL SERVICE, INC. Income Statement Years Ended December 31 ($ millions) 2017 2016 2015 Revenue . . .. .. . $65,872 $60,906 $58,363 Operating expenses: Compensation and benefits . 34,588 34,770 31,028 Repairs and maintenance. . . . 1,600 1,538 1,400 Depreciation and amortization . 2,282 2,224 2,084 Purchased transportation . . . 10,989 9, 129 8,043 Fuel. ....... 2,690 2, 118 2,482 Other occupancy 1,155 1,037 1,022 Other expenses . . . . 5,039 4,623 4,636 Total operating expenses . 58,343 55,439 50,695 Operating profit. ....... 7,529 5,467 7,668 Other income and (expense): Investment income and other . . . . 72 50 15 Interest expense . . . . ... (453) (381) (341) Total other income and (expense) (381) (331) (326) Income before income taxes 7,148 5,136 7,342 Income tax expense . . . . 2,238 1,705 2,498 Net income . . . . $ 4,910 $ 3,431 $ 4,844UNITED PARCEL SERVICE, INC. Balance Sheet December 31 ($ millions) 2017 2016 2015 Assets Current assets: Cash and cash equivalents .. .... $ 3,320 $ 3,476 $ 2,730 Marketable securities . . . . 749 1,091 1,996 Accounts receivable, net . 8,773 7,695 7, 134 Other current assets . . . 2,706 1,587 1,348 Total current assets . . ... 15,548 13,849 13,208 Property, plant and equipment, net. . 22, 118 18,800 18,352 Goodwill . .. . . 3,872 3,757 3,419 Intangible assets, net . . .. . .. 1,964 1,758 1,549 Investments and restricted cash. . 483 476 473 Deferred income tax assets . . 265 591 255 Other noncurrent assets. . . 1,153 1, 146 1,055 Total assets . $45,403 $40,377 $38,311 Liabilities and shareholders' equity Current liabilities: Current maturities of long-term debt and commercial paper . . . $ 4,011 $ 3,681 $ 3,018 Accounts payable . . .. . 3,872 3,042 2,587 Accrued wages and withholdings. 2,521 2,317 2,253 Hedge margin liabilities . . 17 575 717 Self-insurance reserves . .... 705 670 657 Accrued group welfare and retirement plan contributions 677 598 525 Other current liabilities .... 905 847 939 Total current liabilities. 12,708 11,730 10,696 Long-term debt . . . 20,278 12,394 11,316Pension and postretirement benefit obligations . . . 7,061 12,694 10,638 Deferred income tax liabilities. . ... 757 112 115 Self-insurance reserves . .. 1,765 1,794 1,831 Other noncurrent liabilities . . . 1,804 1,224 1,224 Total liabilities . .... 44,373 39,948 35,820 Total shareowners' equity . . . 1,030 429 2,491 Total liabilities and shareowners' equity . . . $45,403 $40,377 $38,311