CASH FLOW PROJECTION WORKSHEET INCOME STATEMENT $($$$000$S$)2014$ Actual $2015$ Second Pass Net sales $($increase $5\%)51,163$ Cost of goods sold $(33,768)$ Gross profit $34\%$ GPM $17,395$ Operating expense $(25\%,$ incl. deprec.$)(12,791)$ Operating profit $4,604$ Interest expense $(850)$ Profit before taxes $3,754$ Taxes $34\%$ of PTP $(1,276)$ Net profit $2,478$ Dividends $28\%$ of NP $(694)$ CASH FLOW PROJECTION WORKSHEET BALANCE SHEET $($$$000$S$)2014$ Actual $2015$ Second Pass Cash $5\%414$ Accounts receivable $$ net $40$ days $51,163$x$40/3655,607$ Inventory $150$ days $33,768$x$150/36513,877$ Prepaids $(5\%)464$ Other current assets $(5\%)508$ Total current assets $20,870$ Gross fixed assets $+1,50023,600$ Accumulated depreciation $+2,692(14,990)$ Net fixed assets $8,610$ Long$-$term investments $(5\%)3,778$ Due from officers $($payment of $1/$yr$)255$ Total assets $33,5132014$ Actual $2015$ Second Pass Notes payable $$ banks $5,140$ Accounts payable $($trade$)33,768$x$50/3654,626$ Income taxes payable $319$ Accrued expenses $(5\%)860$ Current maturities long$-$term debt $700$ Total current liabilities $11,645$ Long$-$term debt $1,280$ Deferred taxes $2,351$ Long$-$term subordinated debt $3,500$ Total liabilities $18,776$ Common stock $2,949$ Retained earnings $11,788$ Total equity $14,737$ Total liabilities and equity $33,513$

$1.$ Will the company be able to pay interest based on this projected net cash from operations?

$2.$ Will the company be able to generate enough net cash income to pay its maturing debt?

$3.$ How much will the company need to borrow after all term debt payments and capital expenditures?

$4.$ How will the company finance itself, and as a result how should the loan be structured?

$5.$In compiling the projected cash flow statement, use the projected second pass $2$XX$5$ income statement adjusted

for changes between the projected $2$XX$5$ balance sheet and the actual $2$XX$4$ balance sheet.