X4. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals, or that are not computed using information available from the model.

Variable	Modeling assumptions
Revenue	Annual revenue growth in each forecast year equals the compound annual growth rate from the historical period
Cost of goods sold	Cost of goods sold to revenue in each forecast year is 1.47 percentage points better the average ratio from the historical period
SG&A and other indirect expenses	SG&A and other indirect expenses to revenue in the first forecast year equals the average annual ratio from the historical period. In all subsequent years, the ratio is 0.95 percentage points worse than the ratio from the previous year
Other nonoperating current assets	Other nonoperating current assets to revenue in each forecast year equals the average annual ratio from the last 2 years of the historical period
Receivables	Receivables to sales in each forecast year equals the weighted average ratio of receivables to sales from the historical period, where the last year of the historical period is weighted at 51%, the year before that is weighted at 33%, and the year before that is weighted at 16%
Inventory	Inventory to COGS in each forecast year equals the average ratio from the historical period
PP&E	PP&E to revenue in each forecast year equals the ratio from the previous year
Other long-term assets	Other long-term assets to revenue in each forecast year is 1.38 percentage points greater than the average ratio from the historical period
Accounts payable	Accounts payable to direct costs in each year of the forecast period equals the average annual ratio from the last 2 years of the historical period
Other current liabilities	Other operating current liabilities to sales in each year of the forecast period equals the ratio from the second last year of the historical period (the year immediately before the last year of the historical period)
Other long-term liabilities	Other long-term liabilities to sales in each forecast year equals the ratio from the previous year