Use 2019 % of Sales figures to Forecast 2020 Accounts - Round all forecasted figures to the nearest dollar.

• 2020 sales are 6.0% higher than 2019 Sales
• 2020 Dividends Paid are $21,186
• 2020 Fixed Assets Net of Depreciation are increased by 6,500 ($6.5 million) over 2019
• 2020 Addition to Retained Earnings is added to Retained Earnings on the 2020 pro forma balance sheet
• All figures are in thousands of dollars, and all answers will also be in thousands of dollars.

D E F G Munch Manufacturing Income Statement Fiscal Year Ending Sept. 30, 2019 All figures in thousands except per share figures . B 1 Munch Manufacturing Income Statement 2 Fiscal Year Ending Sept. 30, 2019 3 All figures in thousands except per share figures 4 2019 6 Net Sales 257,385 7 Cost of Goods Sold 120,971 8 Gross Profit 136,414 9 S, G&A Expense 91,372 10 Depreciation Expense 1,318 11 EBIT 43,724 12 Interest 2,743 13 EBT 40,981 14 Taxes (34%) 13,934 15 Net Income 27,047 16 17 Dividends Paid 19,875 18 Addition to Retained Earnings 7,172 19 20 Other Data 21 Market Price of Common Shares $ 23.78 22 # Shares Outstanding (000s) 7,500 23 Weighted Average Cost of Capital 6.90% 24 Average Tax Rate 34.00% 25 26 27 Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Accumulated Depreciation Fixed Assets Net of Depreciation Total Assets 2019 23,848 6,384 31,685 16,994 866 79,777 66,421 (14,805) 51,616 131,393 Accounts Payable Notes Payable Accrued Expenses Total Current Liabilities Long-Term Debt Total Liabilities Common Stock ($1 Par) Capital Paid In Excess of Par Retained Earnings Total Common Equity Total Liabilities and Equity 15,686 4,845 14,241 34,772 22,580 57,352 7,500 30,632 35,909 74,041 131,393 28 29 30 31 32 33 34 35 Forescasting Assumptions: 2020 Sales grow by 6.0% over 2019 Sales 2020 Dividends Paid $21,186 Fixed Assets Net of Depreciation increase by $6,500 ($6.5 million) Use 2019 % of Sales figures to forecast 2020 accounts Round all forecasted figures to the nearest dollar D E F G Munch Manufacturing Income Statement Fiscal Year Ending Sept. 30, 2019 All figures in thousands except per share figures . B 1 Munch Manufacturing Income Statement 2 Fiscal Year Ending Sept. 30, 2019 3 All figures in thousands except per share figures 4 2019 6 Net Sales 257,385 7 Cost of Goods Sold 120,971 8 Gross Profit 136,414 9 S, G&A Expense 91,372 10 Depreciation Expense 1,318 11 EBIT 43,724 12 Interest 2,743 13 EBT 40,981 14 Taxes (34%) 13,934 15 Net Income 27,047 16 17 Dividends Paid 19,875 18 Addition to Retained Earnings 7,172 19 20 Other Data 21 Market Price of Common Shares $ 23.78 22 # Shares Outstanding (000s) 7,500 23 Weighted Average Cost of Capital 6.90% 24 Average Tax Rate 34.00% 25 26 27 Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Accumulated Depreciation Fixed Assets Net of Depreciation Total Assets 2019 23,848 6,384 31,685 16,994 866 79,777 66,421 (14,805) 51,616 131,393 Accounts Payable Notes Payable Accrued Expenses Total Current Liabilities Long-Term Debt Total Liabilities Common Stock ($1 Par) Capital Paid In Excess of Par Retained Earnings Total Common Equity Total Liabilities and Equity 15,686 4,845 14,241 34,772 22,580 57,352 7,500 30,632 35,909 74,041 131,393 28 29 30 31 32 33 34 35 Forescasting Assumptions: 2020 Sales grow by 6.0% over 2019 Sales 2020 Dividends Paid $21,186 Fixed Assets Net of Depreciation increase by $6,500 ($6.5 million) Use 2019 % of Sales figures to forecast 2020 accounts Round all forecasted figures to the nearest dollar