*disregard the highlighted calculations in the 2021 column

A B D E F G H 1 1 K L M N 0 Forecast 2021 X X Create a 2021 forecast for Sample Company based on the following assumptions by Management. 11. Sales must grow by at least 5% 2. COGS will remain as the same percentage of sales as in previous years 13. Reduce Selling and Gernaral Adminsitrative expense by 2% 14 Generate enough extra cash to buy 2 delivery vansin 2022 for $50,000 5. The current ratios needs to be 2/1 in order to be close to industry standards. 6. The Company will increase the dividend per share to $1.25 17. DSO should 30 Days 8. Accounts payable deferral needs to be 45 Days REMEMBER: On the Balance Sheet Assets Must Equal Liabilities Plus Capital ALSO REMEMBER: Net Income is part of retained earnings in the balance sheet 0 0 $4,000,000.00 days inventory on hand = 1 Sample Co. Balance Sheet as of December 31, 2020 2 Actuals 3 2020 4 Cash $350,000.00 5 Accounts Receivable $4,150,000.00 6 Inventory $3,700,000.00 7 Current Assets $8,200,000.00 8 9 Fixed Assets $5,580,000.00 10 Total Assets $13,780,000.00 11 12 Accounts Payable $2,900,000.00 13 Accrued Liabilities $1,100,000.00 14 Current Portion of LT Debt $1,000,000.00 15 Current Liabilities $5,000,000.00 16 17 Long Term Debt $4,000,000.00 18 Common Stock $1,000,000.00 19 Retained Earnings $3,780,000.00 20 Total Liabilities and Equity $13,780,000.00 21 22 Sample Co. Income Statement for Period Ending December 31, 2020 23 24 Sales $40,000,000.00 25 Cost of Goods Sold $30,000,000.00 26 Gross Profit $10,000,000.00 27 Selling and General Administrative Expense $6,000,000.00 28 EBIT $4,000,000.00 29 Interest $200,000.00 30 EBT $3,800,000.00 31 Taxes (40%) $1,520,000.00 32 Net Income $2,280,000.00 33 34 Per Share Data: 35 Earnings Per Share $2.28 36 Dividends Per Share $1.00 37 38 $42,000,000.00 $31,500,000.00 $5,880,000.00 $2.00 A B D E F G H 1 1 K L M N 0 Forecast 2021 X X Create a 2021 forecast for Sample Company based on the following assumptions by Management. 11. Sales must grow by at least 5% 2. COGS will remain as the same percentage of sales as in previous years 13. Reduce Selling and Gernaral Adminsitrative expense by 2% 14 Generate enough extra cash to buy 2 delivery vansin 2022 for $50,000 5. The current ratios needs to be 2/1 in order to be close to industry standards. 6. The Company will increase the dividend per share to $1.25 17. DSO should 30 Days 8. Accounts payable deferral needs to be 45 Days REMEMBER: On the Balance Sheet Assets Must Equal Liabilities Plus Capital ALSO REMEMBER: Net Income is part of retained earnings in the balance sheet 0 0 $4,000,000.00 days inventory on hand = 1 Sample Co. Balance Sheet as of December 31, 2020 2 Actuals 3 2020 4 Cash $350,000.00 5 Accounts Receivable $4,150,000.00 6 Inventory $3,700,000.00 7 Current Assets $8,200,000.00 8 9 Fixed Assets $5,580,000.00 10 Total Assets $13,780,000.00 11 12 Accounts Payable $2,900,000.00 13 Accrued Liabilities $1,100,000.00 14 Current Portion of LT Debt $1,000,000.00 15 Current Liabilities $5,000,000.00 16 17 Long Term Debt $4,000,000.00 18 Common Stock $1,000,000.00 19 Retained Earnings $3,780,000.00 20 Total Liabilities and Equity $13,780,000.00 21 22 Sample Co. Income Statement for Period Ending December 31, 2020 23 24 Sales $40,000,000.00 25 Cost of Goods Sold $30,000,000.00 26 Gross Profit $10,000,000.00 27 Selling and General Administrative Expense $6,000,000.00 28 EBIT $4,000,000.00 29 Interest $200,000.00 30 EBT $3,800,000.00 31 Taxes (40%) $1,520,000.00 32 Net Income $2,280,000.00 33 34 Per Share Data: 35 Earnings Per Share $2.28 36 Dividends Per Share $1.00 37 38 $42,000,000.00 $31,500,000.00 $5,880,000.00 $2.00