U8_A

Required:

Prepare forecasts of its income statement, balance sheet, and statement of cash flows for 20x7 under the following assumptions:

· a. All financial ratios remain at 20x6 levels.

· b. Kodak will not record restructuring costs for 20x7.

· c. Taxes payable are at the 20x6 level of $544 million.

· d. Depreciation expense charged to SG&A is $765 million and $738 million for 20x6 and 20x5, respectively.

· e. Gross PPE is $12,982 million and $12,963 million for 20x6 and 20x5, respectively.

· f. Projected current maturities of long-term debt are $13 million for 20x7.