Using the table below and the next worksheet forecast the 2017 income statement for Ethan Allen

Use the percent of sales method and the following assumptions:

(1) sales in FY 2017 will be $797.3359;

(2) the tax rate will be 35%;

(3) each item that changes with sales will be the five-year average percentage of sales;

(4) net fixed assets will increase to $300;

(5) the common dividend will be $0.75 per share.

(6) Use your judgment on all other items.

Ethan Allen Interiors Inc.
Income Statement (Industrial)
	2017*	2016	2015	2014	2013	2012
Sales		794.202	754.600	746.659	729.083	729.373
Cost of Goods Sold (COGS) incl. D&A		351.966	343.437	340.163	330.734	339.085
Gross Income		442.236	411.163	406.496	398.349	390.288
SG&A Expense		353.057	345.229	336.860	337.912	340.676
EBIT (Operating Income)		89.179	65.934	69.636	60.437	49.612
Interest Expense		1.618	5.957	7.540	8.778	9.020
Other Income - Net		0.395	1.206	0.306	-1.485	0.562
Unusual Expense - Net		0.000	4.500	0.000	0.000	-0.085
Pretax Income		87.956	56.683	62.402	50.174	41.239
Income Taxes		31.319	19.541	19.471	17.696	-8.455
Net Income		56.637	37.142	42.931	32.478	49.694