Hatfield Medical Supplies: Balance Sheet (Millions of Dollars), 12/31/2013				Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share)
						2013
Cash		$20		Sales		$2,000.0
Accts. rec.		$280		Op. costs (excl. depr.)		$1,800.0
Inventories		$400		Depreciation		$50.0
Total CA		$700		EBIT		$150.0
Net fixed assets		$500		Interest		$40.0
Total assets		$1,200		Pretax earnings		$110.0
				Taxes (40%)		$44.0
Accts. pay. & accruals		$80		Net income		$66.0
Line of credit		$0
Total CL		$80		Dividends		$20.0
Long-term debt		$500		Add. to RE		$46.0
Total liabilities		$580		Common shares		10.0
Common stock		$420		EPS		$6.6
Retained earnings		$200		DPS		$2.0
Total common equ.		$620		Ending stock price		$52.80
Total liab. & equity		$1,200
Selected Ratios and Other Data, 2013
		Hatfield	Industry			Hatfield	Industry
Op. costs/Sales		90%	88%	Total liability/Total assets		48.3%	36.7%
Depr./FA		10%	12%	Times interest earned		3.8	8.9
Cash/Sales		1%	1%	Return on assets (ROA)		5.5%	10.2%
Receivables/Sales		14%	11%	Profit margin (M)		3.30%	4.99%
Inventories/Sales		20%	15%	Sales/Assets		1.67	2.04
Fixed assets/Sales		25%	22%	Assets/Equity		1.94	1.58
Acc. pay. & accr. / Sales		4%	4%	Return on equity (ROE)		10.6%	16.1%
Tax rate		40%	40%	P/E ratio		8.0	16.0
ROIC		8.0%	12.5%
NOPAT/Sales		4.5%	5.6%
Total op. capital/Sales		56.0%	45.0%
Additional Data		2014
Exp. Saled growth rate		10%
Interest rate on LT debt		8%
Target WACC		9%

e. Use the following assumptions to answer the questions below: (1) Operating ratios remain unchanged. (2) Sales will grow by 10%, 8%, 5%, and 5% for the next four years. (3) The target weighted average cost of capital (WACC) is 9%. This is the No Change scenario because operations remain unchanged.

e. (1) For each of the next four years, forecast the following items: sales, cash, accounts receivable, inventories, net fixed assets, accounts payable & accruals, operating costs (excluding depreciation), depreciation, and earnings before interest and taxes (EBIT).