Balance Sheet All figures in millions of U.S. Dollar except per share items. FY2015 FY2016 FY2017 Assets Cash \& Short-Term Investments Short-Term Receivables Inventories Other Current Assets Total Current Assets Property and equipment, at cost Accumulated depreciation and amortization Net Property, Plant \& Equipment Intangible Assets Deferred Tax Assets Other Assets Total Assets Liabilities \& Shareholders' Equity ST Debt \& Curr. Portion LT Debt Accounts Payable Income Tax Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Deferred Tax Liabilities Other Liabilities Total Liabilities Common Equity Total Shareholders' Equity Total Equity Total Liabilities \& Shareholders' Equity \begin{tabular}{|r|r|r|} \hline 427 & 1,252 & 2,761 \\ \hline 6,565 & 7,000 & 7,244 \\ \hline 36 & 25 & 54 \\ \hline 5,498 & 5,856 & 6,135 \\ \hline 12,526 & 14,133 & 16,194 \\ \hline 20,888 & 22,349 & 24,267 \\ \hline 854 & 296 & 440 \\ \hline 1,965 & 1,855 & 2,174 \\ \hline 36,233 & 38,633 & 43,075 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 42,549 & 42,966 & 44,529 \\ \hline \end{tabular} Operating Assumptions: Sales will grow at 7% per year in the next 5 years. Cost of sales will be 67% of total sales in the next 5 years. SG\&A will be 17% of total sales in the next 5 years. Annual Depreciation and Amortization increases by 60 in e. Capital expenditure (CapEx) will be 1,200 in each of the ne) Income Statement Assumptions: Interest and investment income is 2.5% of the ending Cash Interest rate on debt is 5% based on the ending ST Debt \& Tax rate is assumed to be 21%. 1,184 million common shares outstanding. Dividend payout ratio =50% Working Capital Assumptions In the next 5 years, AR to Sales ratio remains the same as tl In the next 5 years, Inventory to COGS ratio remains the sal In the next 5 years, Other current assets to Sales ratio rema In the next 5 years, AP to COGS ratio remains the same as t In the next 5 years, Income Tax Payable to Sales ratio remai In the next 5 years, Other current liabilities to Sales ratio re Assets Assumptions: Intangible assets grows at the same rate as sales (7%) in th Deferred tax assets grows at the same rate as sales (7%) in Other assets grows at the same rate as sales (7%) in the ne: Deferred tax liabilities grows at the same rate as sales (7\%) Other liabilities grows at the same rate as sales (7%) in the Debt Assumptions Short-term debt increases by 2% in each year. Long-term debt decreases by 8% each year. 1. Calculate the following measures for fiscal years 2015, 2016, and 2017: (1) profit margin, (2) ROA, (3) ROE, (4) debtto-equity ratio, (5) accounts receivable days, (6) days inventory outstanding, (7) accounts payable days. \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|l|}{} & FY2015 & FY2016 & FY2017 & \\ \hline Profit margin & & & \\ \hline ROA & & \\ \hline ROE & & & \\ \hline Debt-to-equity ratio & & \\ \hline Accounts receivable days & & & \\ \hline Days inventory outstanding & & & \\ \hline Accounts payable days & & & \\ \hline & & \end{tabular} 2. Create projected income statements for years 2018,2019,2020,2021, and 2022 based on the historical financial statements as well as the information provided in the Assumbtions worksheet. 3. Create projected balance sheet for years 2018,2019,2020,2021, and 2022 based on the historical financial statements as well as the information provided in the Assumptions worksheet. 4. Create projected statements of cash flows based on the projected income statement and balance sheet Balance Sheet All figures in millions of U.S. Dollar except per share items. FY2015 FY2016 FY2017 Assets Cash \& Short-Term Investments Short-Term Receivables Inventories Other Current Assets Total Current Assets Property and equipment, at cost Accumulated depreciation and amortization Net Property, Plant \& Equipment Intangible Assets Deferred Tax Assets Other Assets Total Assets Liabilities \& Shareholders' Equity ST Debt \& Curr. Portion LT Debt Accounts Payable Income Tax Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Deferred Tax Liabilities Other Liabilities Total Liabilities Common Equity Total Shareholders' Equity Total Equity Total Liabilities \& Shareholders' Equity \begin{tabular}{|r|r|r|} \hline 427 & 1,252 & 2,761 \\ \hline 6,565 & 7,000 & 7,244 \\ \hline 36 & 25 & 54 \\ \hline 5,498 & 5,856 & 6,135 \\ \hline 12,526 & 14,133 & 16,194 \\ \hline 20,888 & 22,349 & 24,267 \\ \hline 854 & 296 & 440 \\ \hline 1,965 & 1,855 & 2,174 \\ \hline 36,233 & 38,633 & 43,075 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 6,316 & 4,333 & 1,454 \\ \hline 42,549 & 42,966 & 44,529 \\ \hline \end{tabular} Operating Assumptions: Sales will grow at 7% per year in the next 5 years. Cost of sales will be 67% of total sales in the next 5 years. SG\&A will be 17% of total sales in the next 5 years. Annual Depreciation and Amortization increases by 60 in e. Capital expenditure (CapEx) will be 1,200 in each of the ne) Income Statement Assumptions: Interest and investment income is 2.5% of the ending Cash Interest rate on debt is 5% based on the ending ST Debt \& Tax rate is assumed to be 21%. 1,184 million common shares outstanding. Dividend payout ratio =50% Working Capital Assumptions In the next 5 years, AR to Sales ratio remains the same as tl In the next 5 years, Inventory to COGS ratio remains the sal In the next 5 years, Other current assets to Sales ratio rema In the next 5 years, AP to COGS ratio remains the same as t In the next 5 years, Income Tax Payable to Sales ratio remai In the next 5 years, Other current liabilities to Sales ratio re Assets Assumptions: Intangible assets grows at the same rate as sales (7%) in th Deferred tax assets grows at the same rate as sales (7%) in Other assets grows at the same rate as sales (7%) in the ne: Deferred tax liabilities grows at the same rate as sales (7\%) Other liabilities grows at the same rate as sales (7%) in the Debt Assumptions Short-term debt increases by 2% in each year. Long-term debt decreases by 8% each year. 1. Calculate the following measures for fiscal years 2015, 2016, and 2017: (1) profit margin, (2) ROA, (3) ROE, (4) debtto-equity ratio, (5) accounts receivable days, (6) days inventory outstanding, (7) accounts payable days. \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|l|}{} & FY2015 & FY2016 & FY2017 & \\ \hline Profit margin & & & \\ \hline ROA & & \\ \hline ROE & & & \\ \hline Debt-to-equity ratio & & \\ \hline Accounts receivable days & & & \\ \hline Days inventory outstanding & & & \\ \hline Accounts payable days & & & \\ \hline & & \end{tabular} 2. Create projected income statements for years 2018,2019,2020,2021, and 2022 based on the historical financial statements as well as the information provided in the Assumbtions worksheet. 3. Create projected balance sheet for years 2018,2019,2020,2021, and 2022 based on the historical financial statements as well as the information provided in the Assumptions worksheet. 4. Create projected statements of cash flows based on the projected income statement and balance sheet