Would you agree with the statement?

Thank you.

Projected financial statements should be prepared in such a way that they reflect what actual results will look like given different recommendations and criteria. That being the case, with Southwest Airlines it is important to consider the impact of recommendations through the lens of in-kind historical impact. For instance, expanding the fleet will impact cash flow, balance sheet, and income statement significantly. It will be important to understand how more and newer aircraft impacted past financial statements in order to properly project the impact they will have on future financial statements. It requires understanding how much they cost and how much revenue is expected to be generated by each. The same can be said for adding staff and destinations. These and other recommendations will need to be carefully quantified and measured against past financial statements to understand the true impact they will have. Other factors may remain on the business-as-usual side of things and can be carried forward based on percentages or existing patterns of growth or decline.