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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
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 $ millions
Total revenues $
Operating expenses
Systems development and programming costs
Depreciation and amortization
Total cost of revenues
Selling, general, and administrative expenses
Interest expense
Total expenses
Other income expense, net
Earnings before income taxes
Provision for income taxes
Net earnings $
DATA PROCESSING INC.
Balance Sheet
$ millions June
Current assets
Cash and cash equivalents $
Accounts receivable, net
Other current assets
Total current assets before funds held for clients
Funds half for clients
Total current assets
Longterm receivables, net
Property, plant and equipment, net
Capitalized contract cost, net
Other assets
Goodwill
Intangible assets, net
Total assets $
Current liabilities
Accounts payable $
Accrued expenses and other current liabilities
Accrued payroll and payrollrelated expenses
Dividends payable
Shortterm deferred revenues
Obligations under reverse repurchase agreements
Income taxes payable
Total current liabilities before client funds obligations
Client funds obligations
Total current liabilities
Longterm debt
Other liabilities
Deferred income taxes
Longterm deferred revenues
Total liabilities
Shareholders' equity
Preferred stock, $ par value; Authorized, shares; issued none
Common stock, $ par value; Authorized, shares;
issued, shares; outstanding shares
Capital in excess of par value
Retained earnings
Treasury stock, at cost: shares
Accumulated other comprehensive loss
Total stockholders' equity
Total liabilities and stockholders' equity $
Assume total revenues grow by in All other percentages other than sales growth and provision for income taxes are based on historic percent of total revenues.
CAPEX for will be of total revenue, and depreciation will be $ million.
Goodwill, longterm debt, preferred stock, common stock, and Accumulated other comprehensive loss will not change for the year.
The company will acquire intangibles equal to of total revenues and will record amortization expense of $ million.
Income taxes will be of pretax income and income taxes payable will be of tax expense.
The company will award $ million of stockbased 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 $ million of treasury stock.
Dividends will be $ in and dividends payable will be of dividends.
Prepare a forecast of FY statement of cash flows.
Note: Round your answers to one decimal place for example, enter for
AUTOMATIC DATA PROCESSING, INC.
Forecasted Statement of Cash Flows
For Year Ended
$ millions June
Net income loss
Add: Depreciation
Add: Amortization
Add: Stock based compensation
Accounts receivable, net
Other current assets
Funds held for clients
Longterm receivables, net
Capitalized Contract Cost, Net
Other assets
Accounts payable
Accrued expenses and other current liabilities
Accrued payroll and payrollrelated expenses
Shortterm deferred revenues
Obligations under reverse repurchase agreements
Income taxes payable
Client funds obligations
Other liabilities
Deferred income taxes
Longterm deferred revenues
Operating cash flow
Capital Expenditures
Additional intangibles acquired
Net cash from investing activities
Dividends
Dividends payable
Stock buy backs
Net cash from financing activities
Net change in cash
Beginning cash
Ending cash
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