spreadsheet.

Income Statement ($ million)			Balance Sheet ($ million)
Net Sales	186.2186.2		Assets
Costs Except Depreciation	negative 175.9175.9		Cash	22.222.2
EBITDA	10.310.3		Accounts Receivable	17.917.9
Depreciation and Amortization	negative 1.31.3		Inventories	15.715.7
EBIT	99		Total Current Assets	55.855.8
Interest Income (expense)	negative 7.77.7		Net Property, Plant, and Equipment	112.6112.6
Pre-tax Income	1.31.3		Total Assets	168.4168.4
Taxes (2626%)	negative 0.30.3
Net Income	1.01.0		Liabilities and Equity
			Accounts Payable	33.533.5
			Long-Term Debt	112.3112.3
			Total Liabilities	145.8145.8
			Total Stockholders' Equity	22.622.6
			Total Liabilities and Equity	168.4168.4

Global Corp. expects sales to grow by

9 %9%

next year. Using the percent of sales method and the data provided in the given tables

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, forecast:

a. Costs except depreciation b. Depreciation c. Net income d. Cash

e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable

(Note:

Interest expense will not change with a change in sales. Tax rate is

2626%.)

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capitalexpenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

a. Costs except depreciation

The forecasted costs except depreciation will be

$nothing

million.