, we need to develop the Pro Forma Income Statements from 2022-26. The cut-off point for the forecast is fixed to the year 2020. So we need to develop the Fro Forma Income Statement in 2021.

How to estimate 2021 Sales Projection when developing 2021 Fro Forma Income Statement? To find this figure, we need to estimate the Annual Sales Growth Rate in the past years. We can use the Geomatric Annual Sales Growth Rate 2016-20 as the proxy and it can be calculated as: [(2020 Sales/2016 Sales)^1/4 1]. Then use (1+this rate) times the 2020 Sales to estimate 2021 Sales Projection.

B C D E F 2020 2019 2018 2017 2016 E f 215,600 129,364 86,236 45,722 14,258 E 3,998 E 3,015 19,243 153,000 91,879 61,121 33,493 E 10,792 2,984 2,046 11,806 E 140,700 81,606 59,094 32,765 9,541 E 2,501 E 3,031 11,256 131,062 76,278 54,784 26,606 8,388 1,835 3,539 14,417 E 121,128 70,496 50,631 24,226 7,631 1,454 3,270 14,051 f E 2 3 4 Net Sales 5 Cost of goods sold (note A) 6 Gross Profit 7 Selling and Administrative expenses (Notes A& E) 8 Advertising 9 Depreciation and Amortisation (Note A) 10 Repairs and maintenance 11 Operating profit 12 Other Income (expense) 13 Interest income 14 Interest expense 15 Earnings before taxes 16 Taxes (Notes A and D) 17 Net earnings 18 Basic earnings per common share (Note ) 19 Diluted earnings per common share (Note G) 20 21 22 23 24 -E E 422 E 2,585 - 17,080 7,686 9,394 E 1.96 E 1.95 838 2,277 10,367 4,457 5,910 1.29 E 1.29 738 E 1,274 10,720 E 4,824 5,896 1.33 E 1.29 393 1,180 13,630 7,077 E 6,553 1.75 E 1.75 363 1,211 13,203 6,904 6,299 1.86 1.86 E INCOME STATEMENT BALANCE SHEET STATEMENT OF CASH FLOWS NOTES