Analyze, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statement and balance sheet of ADP Inc.

DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June 30, 2019, $ millions
Total revenues	$14,175.2
Operating expenses	7,145.9
Systems development and programming costs	636.3
Depreciation and amortization	304.4
Total cost of revenues	8,086.6
Selling, general, and administrative expenses	3,064.2
Interest expense	129.9
Total expenses	11,280.7
Other (income) expense, net	(111.1)
Earnings before income taxes	3,005.6
Provision for income taxes	712.8
Net earnings	$2,292.8

DATA PROCESSING INC.
Balance Sheet
$ millions	June 30, 2019
Current assets
Cash and cash equivalents	$1,949.2
Accounts receivable, net	2,439.3
Other current assets	519.6
Total current assets before funds held for clients	4,908.1
Funds half for clients	29,434.2
Total current assets	34,342.3
Long-term receivables, net	23.8
Property, plant and equipment, net	764.2
Capitalized contract cost, net	2,428.5
Other assets	934.4
Goodwill	2,323.0
Intangible assets, net	1,071.5
Total assets	$41,887.7
Current liabilities
Accounts payable	$125.5
Accrued expenses and other current liabilities	1,759.0
Accrued payroll and payroll-related expenses	721.1
Dividends payable	340.1
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	3,483.2
Client funds obligations	29,144.5
Total current liabilities	32,627.7
Long-term debt	2,002.2
Other liabilities	798.7
Deferred income taxes	659.9
Long-term deferred revenues	399.3
Total liabilities	36,487.8
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	1,183.2
Retained earnings	17,500.6
Treasury stock, at cost: 204.5 shares	(13,090.5)
Accumulated other comprehensive loss	(257.3)
Total stockholders' equity	5,399.9
Total liabilities and stockholders' equity	$41,887.7

Assume total revenues grow by 13% in 2020. All other percentages (other than sales growth and provision for income taxes) are based on historic percent of total revenues.

• CAPEX for 2020 will be 1.1% of total revenue, and depreciation will be $184.4 million.
• Goodwill, long-term debt, preferred stock, common stock, and Accumulated other comprehensive loss will not change for the year.
• The company will acquire intangibles equal to 2.9% of total revenues and will record amortization expense of $276.1 million.
• Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax expense.
• The company will award $167.3 million of stock-based compensation, which 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.
• The company will continue its stock repurchases. DP will repurchase $750 million of treasury stock.
• Dividends will be $1,389.40 in 2020, and dividends payable will be 26.3% of dividends.

Prepare a forecast of FY2020 statement of cash flows. Note: Round your answers to one decimal place (for example, enter 14.6 for 14.55555).

AUTOMATIC DATA PROCESSING, INC.
Forecasted Statement of Cash Flows
For Year Ended
$ millions	June 2020
Net income (loss)	2,463.7
Add: Depreciation	184.4
Add: Amortization	276.1
Add: Stock based compensation	167.3
Accounts receivable, net	(317.39)
Other current assets	Answer
Funds held for clients	Answer
Long-term receivables, net	Answer
Capitalized Contract Cost, Net	Answer
Other assets	(121.18)
Accounts payable	17.06
Accrued expenses and other current liabilities	228.83
Accrued payroll and payroll-related expenses	94.22
Short-term deferred revenues	Answer
Obligations under reverse repurchase agreements	Answer
Income taxes payable	Answer
Client funds obligations	3,788.47
Other liabilities	Answer
Deferred income taxes	Answer
Long-term deferred revenues	Answer
Operating cash flow	Answer
Capital Expenditures	(167.2)
Additional intangibles acquired	(464.52)
Net cash from investing activities	(640.72)
Dividends	(1,389.4)
Dividends payable	25.3
Stock buy backs	(750)
Net cash from financing activities	(2,114.1)
Net change in cash	Answer
Beginning cash	Answer
Ending cash	Answer