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A B C D E F G 1 Amco Financial Statements, 2017 and Forecasted 2018 (5 millions) 2 INCOME STATEMENT BALANCE SHEET 3 2017 2018

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A B C D E F G 1 Amco Financial Statements, 2017 and Forecasted 2018 (5 millions) 2 INCOME STATEMENT BALANCE SHEET 3 2017 2018 2017 2018F 4 Sales s 800 $ 864 Cash $ 50 $ 54 5 COGS 640 691 AR 120 130 6 GSA expense 75 81 Inventory 180 194 7 Depreciation expense 50 43 Total current assets 350 378 8 EBIT 35 49 Net fixed assets 200 240 9 Interest expense 7 10 Total assets 550 618 10 Pre-tax income 28 39 11 Tax 10 14 AP 125 135 12 Net income $ 18 $ 25 Long-term debt--current 10 10 13 Selected Assumptions Total current liabilities 135 145 14 Growth rate in sales 8% Long-term debt 90 90 15 COGS/Sales 80% Owners' equity 325 344 16 Dividend payout rate 25% Total liabilities & equity $ 550 $ 579 17 Interest rate 7% External funding required 39 Assume that the company will issue additional debt to cover the EFR. Write the equations for cells (a) C4, (b) C5, (c) C9, (d) G15, and (e) A B C D E F G 1 Amco Financial Statements, 2017 and Forecasted 2018 (5 millions) 2 INCOME STATEMENT BALANCE SHEET 3 2017 2018 2017 2018F 4 Sales s 800 $ 864 Cash $ 50 $ 54 5 COGS 640 691 AR 120 130 6 GSA expense 75 81 Inventory 180 194 7 Depreciation expense 50 43 Total current assets 350 378 8 EBIT 35 49 Net fixed assets 200 240 9 Interest expense 7 10 Total assets 550 618 10 Pre-tax income 28 39 11 Tax 10 14 AP 125 135 12 Net income $ 18 $ 25 Long-term debt--current 10 10 13 Selected Assumptions Total current liabilities 135 145 14 Growth rate in sales 8% Long-term debt 90 90 15 COGS/Sales 80% Owners' equity 325 344 16 Dividend payout rate 25% Total liabilities & equity $ 550 $ 579 17 Interest rate 7% External funding required 39 Assume that the company will issue additional debt to cover the EFR. Write the equations for cells (a) C4, (b) C5, (c) C9, (d) G15, and (e)

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