you were given SkyBlue's 2018 income statement (IS) and balance sheet (BS), along with forecasts of the revenue growth and tax rates You must forecast the IS and BS for the next 3 years.

See below image. Please show excel formulas used

Actual 2018 Projected 2019 2020 2021 Notes 0% 21% 6% 21% 330 672 672 21% 5,500 3,200 2,300 1,600 700 672 336 1,002 336 1,338 6% 21% Use current statutory rate of 21% 330 Increase at average growth rate 672 Use same percent of Net Sales as in 2018 1,002 Calculation 336 Use same percent of Net Sales as in 2018 1,338 Calculation (Use for Free Cash Flow valuation!) Hold at 2018 level Calculation Use implicit rate of 2018 Calculation 1,008 Income Statement Key Assumptions: Average growth rate: Tax Rate Net Sales - Cost of Goods Sold (COGS) = Gross Profit - S,G & A Expenses = EBIT - Interest = EBT - Taxes = Net Income 5 Balance Sheet 5 Cash 7 Notes and Acc. Rec. Inventory Prepaid Current Assets Other 2 Total Assets 110 590 124 466 63 13.23 3 300 1,300 1,100 Increase at average growth rate 2,780 1,300 4,080 Hold at 2018 level 830 100 100 125 See below Increase at average growth rate Hold at 2018 level Hold at 2018 level 1,155 Bank Loan Payables 5 CPLTD 7 Other 3 Current Liabilities LTD Equity 1 2 3 Working Capital 675 LTD of previous year minus CPLTD of current year 2,250 Equity of previous year plus net income of current year 2,250 2,250 2,250 2,455 Exclude Bank Loan Note: the Bank Loan is a plug figure. Its formula starts with total assets and subtracts the liability and equity accounts. If the Bank Loan number is positive, it is debt. If negative, it is basically cash. 5