Question

Lerner 5YR. Forecasted Income Statements, 2016-2020 ( $ millions)

2016

2017

2018

2019

2020

Income statement

Sales

363.0

381.0

400.1

421.0

442.0

Cost of Goods Sold (90% of Sales)

Gross profit

Operating expenses (8% of Sales)

Depreciation

2.0

2.3

2.8

3.1

3.2

Operating profit

Interest expense

0.2

0.2

0.3

0.4

0.5

Income taxes

1.4

1.6

1.8

1.7

1.8

Net income

2016 2017 2018 2019 2020

Change in Net Working Capital 1.4 1.4 1.5 1.6 1.7

Capital expenditure 3.6 3.7 4.1 4.3 4.5