Michelle, the CFO of New Ventures Inc, analyzed her firm's 2021 performance during the 2022 annual budget process. Some of the key observation she made were:

1. The firm's 2021 year end Net Worth stands at $555M.

2. The firm uses all available resources for funding - LT Debt, ST Debt, Trade Credit etc.

3. The 2021 year end balance of these funding resources were at $200M, $65M and $35M respectively.

4. The 2021 Revenue from core business was at $980M, an all time record since inception.

5. The firm has $55M short-term investment at the end of 2021 and will remain at this level in 2022.

6. The 2021 ending cash balance was at the level of their minimum cash balance, $150M.

7. The year end receivables are maintained at 50% of that year's sales with an aggressive receivable policy.

8. The 2021 Ending Inventory was at $10M.

9. The net fixed asset at end 2021 was $150M and there is no plan to add any new fixed asset in 2022.

Michelle is expecting a 20% annual increase in sales for 2022. The gross profit margin is 50%. The total projected

Operating Expense in 2022 including $23M depreciation is $188M.

The only Interest Expense to be considered here is 5% on LT Debt since the interest income from ST Investment generally offsets ST Debt related interest payments.

The Corporate tax rate is at 40%. They are expecting to give out a dividend of $34M at the end of 2022.

The non cash current assets and current liabilities are expected to increase by 20% in 2022

Part A: Develop the projected Income Statement for 2022

Part B: Develop the consolidated Balance Sheet for 2021 (actual) and 2022 (Projected)

Part C: Compute Cash Flow from Operations using Modified Accrual Method of Cash Forecast