Notes for Forecasting 2020:

Pro Forma cash flow statement ending 2020

Sales are estimated to be $80,000 in 2020

Assume the following:

COGS and $5,000 of the Operating Expenses are Variable

Depreciation and the Remainder of the Operating Expenses are Fixed

The firm will maintain its dividend payout ratio this year

Cash, Accounts Receivable, Inventories, Net Plant, Accounts Payable and Accrued Payables are Spontaneous

Market Securities, Bonds Payable and Common Stock are Discretionary

$2,500 of Bonds Payable are Current and Will be Repaid at the Beginning of the Year

Income Statement
For the Year Ended December 31, 2019
Sales	70,000
COGS	45,000
Gross Profit	25,000
Operating Expenses	8,000
Depreciation	5,000
	13,000
EBIT	12,000
Interest Expense	1,300
EBT	10,700
Tax Expense	2,247
Earning After Taxes	8,453
Dividends	3,000
Addition to Retained Earnings	5,453

Balance Sheet
December 31, 2019
Cash	8,000
Marketable Securities	2,000
Accounts Receivable	10,000
Inventories	6,000
Plant, Net	20,000
Total Assets	46,000
Accounts Payable	7,000
Accrued Payables	3,000
Bonds Payable	10,000
Common Stock	15,000
Retained Earnings	11,000
	46,000
External Financing	-
Total Liabilities and Equity	46,000