MBI is manufacturer of wholesale food products. Their sales fluctuate with consumer tastes. Revenue was greater in 2020 as people stayed home during COVID buying more food for their household. Calculate the components of FCF, making necessary adjustments, using the long-form method and forecast their FCF for 2021, 2022 and 2023. Expected Revenue for the next three years are forecast to be $45M, $48M and $49M.

Please show all steps and calculations.

 

MBI,INC. INCOME: Net Sales COST OF SALES GROSS PROFIT EXPENSES: Administrative, selling and delivery expenses Loss on employee note receivable Interest expense, bank and other Interest expense, stockholders and related parties Amortization expense, deferred financing fees Insurance proceeds, net Unrealized gain (losses) on investments Realized loss on investments. Dividend income, net of fees Gain on sale of equipment PRE-TAX INCOME 2020 (3,175,675) 13,950 2019 (143,109) (146,854) (93,054) (117,424) (21,209) (25,450) (988) 54,098,338 41,426,866 40,978,033 39,358,864 34,022,521 38,208,621 (42,270,308) (35,317,669) (34,657,352) (32,805,371) (29,493,774) (33,536,585) 11,828,030 6,109,197 6,320,681 6,553,493 4,528,747 4,672,036 41,942 12,796 2018 (2,521) (3,199,404) (3,127,865) (2,888,403) (2,578,161) (200,000) 2,125 2017 2016 (72,119) (25,450) (71,012) (25,450) 474,048 2015 (159,807) (169,461) (181,768) (147,892) (69,923) (68,851) (25,450) (25,450) 359,616 8,462,683 2,419,668 2,935,439 3,873,214 2,033,061 (2,332,619) 17,283 2,114,507