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terecest the firm's financlat statements. The firme begins with forecaskeg ils thele chanpes on the firm's fortcasted financlal statements ultimately can be used to improve

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terecest the firm's financlat statements. The firme begins with forecaskeg ils thele chanpes on the firm's fortcasted financlal statements ultimately can be used to improve the firm's operatens. Quantitative Problem: At the end of last yebs, fowin foc: reported the following income statement (in milloss of doders): Lecking ahead to the following year, the cocspaly's CFO has assetribled this information: - Year-end sales are expected to be 5% higher than $4.3 bllon in sales gererated last year. - Vear-end operating conts, excluding depreciation, will equil sow of sules. - Depreciation costs are expected to increase of the sume rate as sales. - Interent conts are expected to remain unchanged. - The tax rate is expected to remain at 40N

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