Fin problem

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There are 3 excel sheet need to finish.

O'liyan Auto Centers, a national auto parts chain, was seeking a way to expand Into the Middle Atlantic region. Their Investment bank proposed an acquisition of Tire City located in Somerset. PA. Tire City, a family-owned firm, had grown rapidly with an explosive 24% increase in sales in 2014 in part attributable to new store openings and expanded services. While the company had always generated healthy cash flow. this growth was straining the ability of the company to efficiently manage its assets. In 2015, Tire City had to borrow against its revolving line of credit for the rst time during the year but had it repaid by year-end. Working with its investment adviser. GEC Capital, Tire City decided it was time to sell and was asking $20 million for the company. The investment banker for O'Ryan Auto Centers quickly brought the deal to Dudley Dean, the CFO of O'Ryan's. Mr. Dean thought the price was high wh at the high end of mid-market acquisitions where recent trans 6.5-8.0)! EBITDA. However, Mr. Dean thought that O'Ryan could ea Tire City with a new inventory management system and reduce ove While the growth of Tire City may slow from its double-digit rates as m the space, Mr. Dean believed that Tire City could generate signicant cash fl shareholders or for re-investment in the other parts of the company. actions ranged from multiples of sily improve the cash flow of rhead expenses as well. are competition entered am for O'Ryan's: nd outlined some parameters for detertninitii '_ ' ' . ' Mr. Dean sat down with his acquisition team a if Tire City could generate at least 52.0 milehiin the opportunity. His goal was to determine (1) operating cash ow over the next three years with a dividend payout ratio of at leastmto. O'liyon; and (2) whether $20 million was a reasonable starting point for the negotiations. The: team was given these parameters for a 3-year forecast to answer Mr. Dean's questions. Sales growth: 15% in 2016, 12.5% in 2017 and 10% in 2018. An improvement in COGS/sales to 57% over the forecast horizon. A reduction in GSA/sales to 3096 from 2016 onwards. Accrued expenses/sales remains at 7% of sales; cashlsaies remains ata'i. CAPX falls to 1.5% of sales. Tire City's debt will be repaid in 2016 and replaced with a 5750" available to O'Ryan (ignore all fees) that can be used to mac-rm .. the cash withdrawal (dividend) targets. The interest fate- on \"1% " n35\": tax rate (O'Ryan's \"tel- - ' r - Ukyan's current capital structure consists of: _ "J a. $120 million book value of debt currently selling -' ' ' ' _ average yield of 6.5%. ... 20 million shares of stockqutstanm . ,' mien prewar Tire Cit ' | For Years Ending December 31______' Sales 16,230 20,355 23,505 Cost of Goods Sold 9,430 11,898 13,612 ____ ____ ___\"! ____ ____ ___ ____ ____ ___ ___ ___ Operating cash flow 1,059 1,283 1,497 AtDecamber-SI ____ Assam cash \" Inventories 1,630 1,838 2,190 2,322 2,612 2,873 Cunentnesets 4,683 m 6,548 Gross PPE 3,232 3,795 4,163 4,568 mm Accumulated depreciation 1,335 1,515 1,?28 1 993 2 302 2 637 Net PPPE 1,897 mm 2,570 2,722 2,889 roe-em \"___ un-aremw ____ cumant rum-m or Long-berm \"m Aocounls Payable 1,042 m 1,437 1,688 1,900m Accrued expenses 1,145 m 1,653 Current Liabilities 2,312 2,882 3,215 Common stock 1,135 _ 1,135 Retained earnings 2,133 m 3,883 Shareholders Equity 3,268 _ 5,018 mentioned ____ Cashlsales Accrued expenswsales "WC Change in we ___ ____ CAPEXIsaIes ___ CAPEX ___