I created a spreadsheet where I forecasted income statement, cash flows, and determined the NPV as a purchase price for Charter Communications to acquire Time Warner Cable. I need a 3 page double spaced paper , 12pt times new roman font, apa format...to show financial ratios, forecast changes, growth, the purchase price of NPV, and why it should be enough for Charter to buy Time Warner. You can make references to the spreadsheet. You cant write about what the companies are actually doing in real life as this is my own hypothetical paper on why TWC is a good company for Charter to acquire.

CHARTER COMMUNICATIONS INC INCOME STATEMENT 2014 ($ million) Revenue 9,108 Cost of revenue 4,562 Gross profit 4,546 Operating expenses Sales, General and administrative 529 Other operating expenses 3,046 Total operating expenses 3,575 Operating income 971 Other income (expense) 918 Income before taxes 53 Provision for income taxes 236 Net income from continuing operations 183 Net income 183 CHARTER COMMUNICATIONS INC BALANCE SHEET 2014 ($million) Assets Current Assets Cash and cash equivalents 3 Total cash 3 Receivables 285 Prepaid expenses 83 Total current assets 371 Noncurrent assets Property, plant and equipment Gross property, plant and equipment 13857 Accumulated Depreciation 5484 Net property, plant and equipment 8373 Goodwill 1168 Intangible assets 7325 Other longterm assets 7313 Total noncurrent assets 24179 Total assets 24550 Liabilities and stockholders' equity Current liabilities Accounts payable 140 Accrued liabilities 1410 Deferred revenues 85 Total current liabilities 1635 Noncurrent liabilities Longterm debt 21023 Deferred taxes liabilities 1674 Other longterm liabilities 72 Total noncurrent liabilities 22769 Total liabilities 24404 Stockholders' equity Additional paidin capital 1930 Retained earnings 1762 Treasury stock Accumulated other comprehensive income 22 Total stockholders' equity 146 Total liabilities and stockholders' equity 24550 TIME WARNER CABLE INC (TWC) INCOME STATEMENT 2014 ($ million) Revenue 22,812 Cost of revenue 5,294 Gross profit 17,518 Operating expenses Sales, General and administrative 4,561 Restructuring, merger and acquisition 225 Other operating expenses 8,100 Total operating expenses 12,886 Operating income 4,632 Interest Expense 1,419 Other income (expense) 35 Income before taxes 3,248 Provision for income taxes 1,217 Net income from continuing operations 2,031 Net income 2,031 TIME WARNER CABLE INC (TWC) BALANCE SHEET 2014 ($million) Assets Current assets Cash and cash equivalents 707 Receivables 949 Deferred income taxes 269 Prepaid expenses 365 Other current assets 26 Total current assets 2316 Noncurrent assets Gross property, plant and equipment 38552 Accumulated Depreciation 22562 Net property, plant and equipment 15990 Equity and other investments 64 Goodwill 3137 Intangible assets 26535 Other longterm assets 459 Total noncurrent assets 46185 Total assets 48501 Liabilities and stockholders' equity Current liabilities Shortterm debt 1017 Accounts payable 567 Accrued liabilities 2715 Deferred revenues 198 Total current liabilities 4497 Noncurrent liabilities Longterm debt 22701 Deferred taxes liabilities 12560 Minority interest 4 Other longterm liabilities 726 Total noncurrent liabilities 35991 Total liabilities 40488 Stockholders' equity Common stock 3 Additional paidin capital 7172 Retained earnings 1162 Accumulated other comprehensive income 324 Total stockholders' equity 8013 Total liabilities and stockholders' equity 48501 CHARTER COMMUNICATIONS INC Statement of CASH FLOW (Source: www.morningstar.com) Cash Flows From Operating Activities Net income Depreciation & amortization Amortization of debt discount/premium and issuance costs Deferred income taxes Accounts receivable Prepaid expenses Other working capital Other noncash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Preferred stock repaid Common stock repurchased Other financing activities Net cash provided by (used for) financing activities Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow ANALYSIS 2014 $million 183 2102 233 51 9 158 109 2359 2221 7083 9304 8806 1980 19 120 6927 18 21 3 2359 2188 171 ($ million) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 171 188.1 206.91 227.601 250.3611 275.39721 302.93693 333.23062 366.55369 403.20906 443.5299607 1 0.8695652 0.7561437 0.6575162 0.5717532 0.4971767 0.4323276 0.375937 0.3269018 0.2842624 0.247184706 171 163.56522 156.45369 149.65135 143.14477 136.92109 130.968 125.27373 119.82705 114.61718 109.633823 1,521.06 2,699.75 $4,220.80 Million Free cash flow Discounting factor @15% PV @ 15% Total present Value Residual value Net Present Value (Value of the firm) Assumption: * The free cash flow increases with the constant rate of 10% each year for the next 10 years. * Thegrowth rate in cash flows becomes 5% per year thereafter. * The WACC or discounted rate is 15% for each year Copyright Morningstar, Inc. 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Russell 2000 quote is 10 minutes delayed. end copyright, seo end footerwrap TIME WARNER CABLE INC (TWC) Statement of CASH FLOW (Source: www.morningstar.com) Cash Flows From Operating Activities Net income Depreciation & amortization Investment/asset impairment charges Deferred income taxes Stock based compensation Accounts payable Other working capital Other noncash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Acquisitions, net Purchases of investments Sales/Maturities of investments Purchases of intangibles Sales of intangibles Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Preferred stock repaid Common stock repurchased Excess tax benefit from stock based compensation Dividend paid Other financing activities Net cash provided by (used for) financing activities Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow ANALYSIS 2014 $million 2031 3371 756 182 82 82 154 6350 4136 2 19 39 66 4092 507 1750 259 141 857 142 2076 182 525 707 6350 4136 2214 ($ million) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2214 2435.4 2678.94 2946.834 3241.5174 3565.6691 3922.2361 4314.4597 4745.9056 5220.49619 5742.545807 1 0.8695652 0.7561437 0.6575162 0.5717532 0.4971767 0.4323276 0.375937 0.3269018 0.28426241 0.247184706 2214 2117.7391 2025.6635 1937.5912 1853.3481 1772.7677 1695.6909 1621.9652 1551.445 1483.99084 1419.469498 19,693.67 34,954.63 $54,648.30 Million (That is the amount, the Charter Comm will have to pay to acquire the Time Warner Inc.) Free cash flow Discounting factor @15% PV @ 15% Total present Value Residual value Net Present Value (Value of the firm) Assumption: * The free cash flow increases with the constant rate of 10% each year for the next 10 years. * Thegrowth rate in cash flows becomes 5% per year thereafter. * The WACC or discounted rate is 15% for each year 8