You will be populating and projecting 3 years of financial data for the target company. Given Information: Historical (Year 0) Financials Growth/Ratio Assumptions Income Statement Assumptions: 1. Sales in Year 1 is $682.5M. Compute the Sales growth in the first year. This growth rate increases by 10% per year, for each of the next two years. 2. COGS\% of Sales is 60% in the first year. This ratio increases by 5% per year, for each of the next two years. 3. SG\&A\% of Sales is 20% and will remain constant. 4. The tax rate is fixed at 40%. Balance Sheet Assumptions: Asset Assumptions 1. Current assets\% of Sales is 20% in the first year, 25% in the second year, and 30% in the third year. Note: Cash is a separate line item (you will need to compute this). 2. Investment growth/year is fixed at 10%. Liabilities Assumptions 3. Current liabilities % of Sales is 15% in the first year. This ratio increases by 5% per year, for each of the next two years. 4. Long-term debt is fixed at $120M per year. Equity Assumptions 5. Stock and Additional Paid-in-Capital is fixed at $420M per year. 6. Retained Earnings is $240M in the first year. This amount increases by $10M per year, for each of the next two years. Historical Income Statement Balance Sheet Assets CashCurrentassetsInvestmentsTotalassets$807.0$$$136.5353.0896.5 Liabilities CurrentliabilitiesLong-termdebt$116.5$120.0 Equity You will be populating and projecting 3 years of financial data for the target company. Given Information: Historical (Year 0) Financials Growth/Ratio Assumptions Income Statement Assumptions: 1. Sales in Year 1 is $682.5M. Compute the Sales growth in the first year. This growth rate increases by 10% per year, for each of the next two years. 2. COGS\% of Sales is 60% in the first year. This ratio increases by 5% per year, for each of the next two years. 3. SG\&A\% of Sales is 20% and will remain constant. 4. The tax rate is fixed at 40%. Balance Sheet Assumptions: Asset Assumptions 1. Current assets\% of Sales is 20% in the first year, 25% in the second year, and 30% in the third year. Note: Cash is a separate line item (you will need to compute this). 2. Investment growth/year is fixed at 10%. Liabilities Assumptions 3. Current liabilities % of Sales is 15% in the first year. This ratio increases by 5% per year, for each of the next two years. 4. Long-term debt is fixed at $120M per year. Equity Assumptions 5. Stock and Additional Paid-in-Capital is fixed at $420M per year. 6. Retained Earnings is $240M in the first year. This amount increases by $10M per year, for each of the next two years. Historical Income Statement Balance Sheet Assets CashCurrentassetsInvestmentsTotalassets$807.0$$$136.5353.0896.5 Liabilities CurrentliabilitiesLong-termdebt$116.5$120.0 Equity