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Set of projected financials statements

Where I am stuck is in using the percent-of-sales method to develop a projected income statement and balance sheet. The company I am using is PepsiCo and I am supposed to develop these statements based on their 2004 statements from their website.

Here is a copy of what the instructor is asking:
"Develop a set of projected financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the company's sales have increased by 20%."

Can you please explain how to do this?

I have not found much useful information on the internet.

Here is a link to their 04' annual report in PDF form.
( http://www.pepsico.com/investors/annual-reports/2004/247528PepsicoLR.pdf )
The income statement in on pg. 64 and the balance sheet is on pg. 66.

Thanks a bunch for the help!

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here I am stuck is in using the percent-of-sales method to develop a projected income statement and balance sheet. The company I am using is PepsiCo and I am supposed to develop these statements based on their ...

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This explains the stepss of preparing the set of projected financials statements

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