Deferred Taxes and Other Liabilities: projected to remain constant for the next 5 years. Common Stock: The Company does not plan to issue or buy back any shares. However your model should allow for this. Assume that the Price /Earnings ratio will be 12 going forward - this helps you estimate a stock price for future periods. The current number of shares outstanding is 500 thousand. Balancing: Use a combination of the revolver (short term debt) and excess cash to balance the balance sheet. If the firm generates excess cash (over and above what it needs for it operations) it is added to marketable securities. If the firm fails to generate sufficient cash to meet its operating cash needs, it will sell marketable securities. When the marketable securities account goes to zero, the firm will draw the necessary funds from the revolver (credit line) at the bank. Neither marketable securities nor the revolver should become negative. Definitions: Days Sales Outstanding: end AR Days Payables Outstanding: Inventory Turn