Analyze, Forecast, and Interpret Income Statement and Balance Sheet

Following are the income statement and balance sheet of ADP Inc.

Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.

AUTOMATIC DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June 30, 2019, $ millions
Total revenues	$12,474.0
Operating expenses	6,288.0
Systems development and programming costs	636.3
Depreciation and amortization	304.4
Total cost of revenues	7,228.7
Selling, general, and administrative expenses	2,696.0
Interest expense	114.0
Total expenses	10,038.7
Other (income) expense, net	(98.0)
Earnings before income taxes	2,533.3
Provision for income taxes	712.8
Net earnings	$1,820.5

AUTOMATIC DATA PROCESSING INC.
Balance Sheet
$ millions	June 30,2019
Current assets
Cash and cash equivalents	$1,715.0
Accounts receivable, net	2,439.3
Other current assets	519.6
Total current assets before funds held for clients	4,673.9
Funds held for clients	25,902.0
Total current assets	30,575.9
Long-term receivables, net	23.8
Property, plant and equipment, net	672.0
Capitalized contract cost, net	2,428.5
Other assets	934.4
Goodwill	2,323.0
Intangible assets, net	1,071.5
Total assets	$38,029.1
Current liabilities
Accounts payable	$125.5
Accrued expenses and other current liabilities	1,548.0
Accrued payroll and payroll-related expenses	721.1
Dividends payable	299.0
Short-term deferred revenues	220.7
Obligations under reverse repurchase agreements	262.0
Income taxes payable	54.8
Total current liabilities before client funds obligations	3,231.1
Client funds obligations	25,647.0
Total current liabilities	28,878.1
Long-term debt	2,002.2
Other liabilities	703.0
Deferred income taxes	659.9
Long-term deferred revenues	399.3
Total liabilities	32,642.5
Shareholders' equity
Preferred stock, $1.00 par value; Authorized, 0.3 shares; issued , none
Common stock, $0.10 par value; Authorized, 1,000.0 shares;
issued, 638.7 shares; outstanding 434.2 shares	63.9
Capital in excess of par value	1,169.9
Retained earnings	17,500.6
Treasury stock, at cost: 204.5 shares	(13,090.5)
Accumulated other comprehensive loss	(257.3)
Total stockholders' equity	5,386.6
Total liabilities and stockholders' equity	$38,029.1

Forecast ADPs 2020 income statement and balance sheet using the following relations ($ millions). Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

Assumptions
Total revenue growth	13.00%	growth
CAPEX as a percentage of total revenue	1.10%	% of total revenue
Depreciation	$184.4	million
Acquired intangibles as a percentage of total revenue	2.90%	% of total revenue
Amortization	$276.1	million
Provision for income taxes	25.00%	% percentage of earnings before income taxes in 2020
Taxes payable	7.70%	% of provision for income taxes in 2020
Stock-based compensation	$167.3	increases Capital in excess of par value by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year.
Stock repurchases	$750.0	million
Dividends	$1,389.4	million
Dividends payable	26.30%	% of dividends
Goodwill, long-term debt, preferred stock, common stock, and Accumulated other comprehensive loss		No change in $ amount
All other percentages are based on historic percent of total revenues

	AUTOMATIC DATA PROCESSING INC.
	Statement of Consolidated Earnings
	For Year Ended June 30, 2020, $ millions
	Total revenues	Answer
	Operating expenses	Answer
	Systems development and programming costs	Answer
	Depreciation and amortization	Answer
	Total cost of revenues	Answer
	Selling, general, and administrative expenses	Answer
	Interest expense	Answer
	Total expenses	Answer
	Other (income) expense, net	Answer
	Earnings before income taxes	Answer
	Provision for income taxes	Answer
	Net earnings	Answer

	AUTOMATIC DATA PROCESSING INC.
	Balance Sheet
	$ millions	June 30,2020
	Current assets
	Cash and cash equivalents	Answer
	Accounts receivable, net	Answer
	Other current assets	Answer
	Total current assets before funds held for clients	Answer
	Funds held for clients	Answer
	Total current assets	Answer
	Long-term receivables, net	Answer
	Property, plant and equipment, net	Answer
	Capitalized contract cost, net	Answer
	Other assets	Answer
	Goodwill	Answer
	Intangible assets, net	Answer
	Total assets	Answer
	Current liabilities
	Accounts payable	Answer
	Accrued expenses and other current liabilities	Answer
	Accrued payroll and payroll-related expenses	Answer
	Dividends payable	Answer
	Short-term deferred revenues	Answer
	Obligations under reverse repurchase agreements	Answer
	Income taxes payable	Answer
	Total current liabilities before client funds obligations	Answer
	Client funds obligations	Answer
	Total current liabilities	Answer
	Long-term debt	Answer
	Other liabilities	Answer
	Deferred income taxes	Answer
	Long-term deferred revenues	Answer
	Total liabilities	Answer
	Shareholders' equity
	Preferred stock, $1.00 par value; Authorized, 0.3 shares; issued , none	Answer
	Common stock, $0.10 par value; Authorized, 1,000.0 shares;
	issued, 638.7 shares; outstanding 434.2 shares	Answer
	Capital in excess of par value	Answer
	Retained earnings	Answer
	Treasury stock, at cost: 204.5 shares	Answer
	Accumulated other comprehensive loss	Answer
	Total stockholders' equity	Answer
	Total liabilities and stockholders' equity	Answer

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