Problem I (20 points): Given the assumptions from 2013 to 2015, please assume that the financial ratios in 2016 is the average of those of the first three years, answer the following questions. (Note: Try to give formulas you use or the calculating procedure to justify your answers.) 1) Using the method we learned in class, fill the following assumption form as well as Pro Forma financial statements of firm WNS for 2016. (15 points) 2) Compute the CFFA for firm WNS in 2016. (5 points) + Projection Assumptions (K) Sales Cost of goods sold ratio Operating expenses ratio Tax Rate Deprecation Interest (to be )paid Cash/Sales Days' sales in receivables Days' sales in inventory Net Fixed Asset Turnover Days to pay payables Other current liabilities/Sales Ending inventory Net Fixed Asset Net working capital 2013 100.00% 75.2% 21.30% 0.35 10 5 1% 43.4 59.4 12.5 10 1.50% N/a N/a N/a 2014 100.00% 75% 20.60% 0.35 10 5 1% 43.4 59.4 12.5 10 1.50% N/a N/a N/a 2015 100.00% 75.8% 20.30% 0.35 10 5 1% 43.4 59.4 12.5 10 1.50% 587 410 1100 2016 100.00% = - = = = Pro Forma Income Statement, WNS 2016 Sales Cost of Goods Sold Gross Profit Operating Expense Depreciation EBIT Interest EBT Tax Net Income Part of Pro Forma Balance Sheet, WNS 2016 Cash Accounts Receivable Inventory Current Assets Net Fixed Assets Accounts Payable Other current liabilities Current Liability 5500