Metropolis Forecast:

The last step in this forecast is to solve for the Cash balance at the end of each year. Since we know the accounting equation must balance, we know that Assets equals Liabilities plus Owners' Equity. We have the forecasts for Liabilities and Owners' Equity and we have the forecast for all of the assets except cash so we need to deduct the forecasted assets from the total liabilities and equity to calculate the forecasted cash for each year.

Enter the forecasted amounts for Cash in the appropriate spaces below.

B C D E TI G 1 3 4 6 9 120.0 54.0 66.0 14.4 9.6 16.2 40.2 25.8 1.7 2004 220.0 99.0 121.0 26.4 17.6 17.4 61.4 59.6 1.6 58.0 17.4 40.6 2005 387.5 174.4 213.1 46.5 31.0 20.1 97.6 115.5 1.6 113.9 34.2 79.7 2006 611.3 275.1 336.2 73.4 48.9 25.5 147.8 188.4 1.5 186.9 56.1 130.8 24.1 7.2 16.9 Metropolis Healthcare, Ltd 2 Income Statement For Year Ended 31 December, 2003 (In Rupees millions) 5 Net sales 7 Cost of sales 8 Gross profit Sales & Marketing expenses 10 Administrative expenses 11 Depreciation and amortization 12 Total operating expenses 13 Operating income 14 Interest expense 15 Income before taxes 16 Income tax expense 17 Net Income 18 19 20 Balance Sheet 21 As of 31 December, 2003 22 (In Rupees * millions) 23 24 Cash 25 Accounts receivable 26 Inventories 27 Total current assets 28 Property, plant and equipment 29 Accumulated depreciation 30 Goodwill 31 Total assets 32 33 Accounts payable 34 Salaries and wages payable 35 Long-term debt - current portion 36 Total current liabilities 37 Long-term debt 38 Total liabilities 39 Share capital 40 Retained earnings 41 Total equity 42 Total liabilities and equity 43 44 2004 2005 2006 22.0 7.3 38.8 12.9 61.1 20.4 35.4 12.0 4.0 51.4 204.5 -91.2 2.5 167.1 222.8 -108.6 12.5 258.7 -128.7 32.5 330.7 -154.2 72.5 6.0 0.2 11.0 0.4 1.0 1.0 7.2 31.4 38.6 46.6 81.9 128.5 12.4 30.4 42.8 46.6 118.4 165.0 207.8 19.4 0.6 1.1 21.1 29.3 50.4 46.6 190.2 236.8 287.2 30.6 1.0 1.1 32.7 28.2 60.9 46.6 307.9 354.5 415.4 167.1