Assets Current assets Cash and cash equivalents Investments Accounts receivable, net of allowance for doubtful accounts Inventories Financing receivables, net Other current assets Total current assets Property and equipment, net Financing receivables, net Goodwill Purchased intangible assets, net Deferred tax assets Other assets Total assets Liabilities and equity Current liabilities Short-term debt Accounts payable Income taxes payable Accrued compensation Deferred revenue Other current liabilities Total current liabilities Long-term debt Income taxes payable Deferred revenue Cisco Systems Inc. Consolidated Balance Sheets In millions, except par value July 27, 2019 July 28, 2018 Assets Current assets Cash and cash equivalents Investments Accounts receivable, net of allowance for doubtful accounts Inventories Financing receivables, net Other current assets Total current assets Property and equipment, net Financing receivables, net Goodwill Purchased intangible assets, net Deferred tax assets Other assets Total assets Liabilities and equity Current liabilities Short-term debt Accounts payable Income taxes payable Accrued compensation Deferred revenue Other current liabilities Total current liabilities Long-term debt Income taxes payable Deferred revenue Other long-term liabilities Total liabilities In millions, except par value July 27, 2019 July 28, 2018 lll Equity: Cisco shareholders' equity Preferred stock, no par value: 5 shares authorized: none issued and outstanding -- Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,250 and 4,614 shares issued and outstanding atJuly 27, 2019, and July 28, 2018, respectively 40,266 42,820 (Accumulated deficit) Retained earnings (5,903) 1,233 Accumulated other comprehensive income (loss) (792) (849) Total Cisco shareholders' equity 33,571 43,204 Total equity 33,571 43,204 Total liabilities and equity $97,793 $108,784 (a) Compute net operating assets (NOA) for 2019. Hint: Treat Financing receivable as operating assets. NOA=$ 24,824 V (b) Compute net operating profit after tax (NOPAT) for 2019, assuming a federal and state statutory tax rate of 22%. Assume that all items on the 2019 income statement will persist.(Round your answer to the nearest whole number.) 2019 NOPAT=$ 11,214 X (c) Use the parsimonious forecast method, as shown in Analysis Insight box on page 13-4, to forecast Cisco's sales, NOPAT, and NOA for 2020 through 2023 and the terminal period using the following assumptions. Sales growth 20202023 5% Terminal growth 1% Net operating prot margin 2019 rate rounded to three decimal places Net operating asset turnover 2019 rate rounded to three decimal places I CSCO Reported Forecast Horizon Terminal ($ millions) 2019 2020 Est. 2021 Est. 2022 Est. 2023 Est. Period Sales (rounded two decimal places) $ 51,904 v $ 54,4992 v $ 57,224.16 V $ 60,085.37 v $ 63,089.64 V $ 63,720.53 V Sales (rounded nearest whole number) 51,904 v 54,499 v 57,224 v 60,085 v 63,090 V 63,721 V NOPAT(rounded nearestwhole number)* 11,088 x 11,645 x 12,228 x 12,839 x 13,481 x 63,721 x NOA (rounded nearest whole number)* 24,824 v 20,715 x 21,751 x 22,839 x 23,981 x 13,616 x * Use sales rounded to nearest whole number for this calculation
