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PLEASE FILL IN ALL OF THE FOLLOWING STATEMENTS COMPLETELY

Complete the financial statements and projections for the second 6 months of FY16 all of FY16 and all of FY17 including income statement, balance sheet and statement of cash flows. Hints: Do income statement first, then balance sheet & then statement of cash flows. Do 6 month forecasts last (just subtract first 6 mos. data from full year data). LIFT TRUCK ATTACHMENTS, INC, FINANCIAL FORECAST The attached financial statements (income statements, balance sheets and statements of cash flow) can be used to assist in forecasting results for the next 1-1/2 half years. In addition, the RMA ratios can also be used to determine forecasted financials. The assumptions to be used in the forecast are as follows: 1. Net sales are forecasted to total $2.7 million, a drop from 2015 to 2016. Net sales are expected to improve in 2017 to a level of $3 million 2. Gross profits are expected to drop to 36% of sales for the entire year 2016 and to drop further to 35% of net sales in 2017. 3. Sales expenses are projected to increase in the second half of 2016 with the total year 2016 amounting to $169,000. Sales expenses for 2017 are projected to increase by 5% over those in 2016. 4. Administrative expenses are expected to increase to a projected $452,400 for all of 2016 and to $481,200 in 2017. 5. Depreciation will amount to $36,300 for all of 2016 and $20,000 for 2017. 6. Other expense will increase to $27,800 for all of 2016 and will amount to $20,800 in 2017. (This results from substantial increases in interest costs resulting from acquisition debt.) 7. Income taxes include both state and federal taxes and will amount to 32.69% of pretax profits in 2016 and 39.22% of pretax profits in 2017. (This is a higher rate than that historically experienced because of the previous use of tax credits that reduced income tax to a lower than normal rate.) 8. There will be no profit sharing bonuses in 2016 and 2017. 9. Accounts receivable will amount to 43 days of sales at the end of 2016 and will hold at the same dollar figure at the end of 2017. (Hint: Don't enter cash into the balance sheet initially. Use cash as the "plug" figure.) 10. Inventory at the end of 2016 will amount to 59.07days of 2016 Cost of Sales and will hold the same dollar figure at the end of 2017. 11. Prepaid expenses will amount to the same dollar figure at the end of 2016 and 2017 as it was on April 30, 2016. 12. There will be no additions to fixed assets in the last fiscal half of 2016 and additions to fixed assets will amount to $20,000 during 2017. 13. The current portion of long term debt will amount to $49,700 at the end of 2016 and $42,300 at the end of 2017. 14. Accounts payable will amount to 35.43 days of 2016 cost of sales at the end of 2016 and will amount to 35.04 days of 2017 projected cost of sales. 15. Accrued expenses will amount to $38,400 at the end of 2016 and $40,000 at the end of 2017. 16. Long term debt net of the current portion will amount to $182,700 at the end of 2016 and to $140,400 at the end of 2017. 17. Common stock will remain at $9,800 at the end of 2016 and 2017. 18. Retained earnings will increase or decrease by the amount of after tax profit or loss during the period covered by the statements. 19. There will be no distributions from retained earnings to shareholders during the forecast period. ASSIGNMENT Please complete the forecasted financial statements by filling in the blanks on the attached statements. Lift Truck Attachments, Inc, Historical Income Statements $ in 000's For Years Ending 10/31 Fill in the Blanks Actual Actual Actual Actual Forecast Forecast Forecast Description Year Ending Year Ending Year Ending 6 Mo. Ended 6 Mo. Ended Year Ending Year Ending 10/31/2013 10/31/2014 10/31/2015 4/30/2016 10/31/2016 10/31/2016 10/31/2017 Net Sales $2,100.2 $2,723.2 $2,841.4 $1,343.6 Cost of Sales $1,468.8 $1,807.6 $1,839.0 $832.8 Gross Profit $631.4 $915.6 $1,002.4 $510.8 Expenses: Selling Expenses $126.7 $177.5 $172.1 $59.7 Admin. Expenses $374.7 $504.5 $445.2 $219.0 Depreciation $9.0 $8.1 $20.6 $7.2 Total Expenses $510.4 $690.1 $637.9 $285.9 Operating profits $121.0 $225.5 $364.5 $224.90 Other Expenses (Income) $18.7 $20.6 $24.2. -$3.1 Profit Before Income Tax $102.3 $204.9 $340.3 $228.0 Incon Tax $10.3 $19.5 $14.6 $5.9 Profit After Income Tax* $92.0 $185.4 $325.7 $222.1 *Prior to Profit Sharing Bo $57.9 $125.4 $260.0 $0.0 Profit After Tax & Bonus $34.1 $60.0 $65.7 $222.1 Rev. 1-31-171 Fill in the Blanks Forecast Forecast 10/31/16 10/31/17 Lift Truck Attachments, Inc, Balance Sheets $ in 000's For Years Ending 10/31 Actual Actual Actual Actual Actual Description 10/31/12 10/31/13 10/31/14 10/31/15 04/30/16 Assets Current Assets Cash $26.3 $79.7 $159.6 $119.0 $113.7 Accts. Receivable $200.4 $231.5 $253.3 $313.8 $344.1 Inventory $240.1 $222.6 $280.2 $272.4 $323.8 Prepaid Expense $25.1 $34.8 $46.9 $44.5 $66.7 Total Current Assets $491.9 $568.6 $740.0 $749.7 $848.3 Fixed Assets at Cost $128.2 $138.8 $177.1 $203.1 $209.5 Accumulated Depreciation $96.2 $105.2 $113.3 $133.9 $141.1 Net Fixed Assets $32.0 $33.6 $63.8 $69.2 $68.4 Total Assets $523.9 $602.2 $803.8 $818.9 $916.7 Liabilities & Equity Current Liabilities Current Portion Long Term $31.5 $31.1 $39.9 $39.8 $46.9 Accts. Payable $130.2 $157.5 $181.3 $128.8 $121.2 Accrued Expenses $73.4 $93.9 $112.5 $156.5 $9.8 Total Current Liabilities $235.1 $282.5 $333.7 $325.1 $177.9 Long Term Debt (Net of Curre $135.6 $132.4 $222.8 $180.8 $203.7 Total Liabilities $370.7 $414.9 $556.5 $505.9 $381.6 Equity Common Stock $9.8 $9.8 $9.8 $9.8 $9.8. Retained Earnings 143.4 177.5 237.5 303.2 525.3 Total Equity $153.2 $187.3 $247.3 $313.0 $535.1 Total Liabilities & Equity $523.9 $602.2 $803.8 $818.9 $916.7 Rev. 1-31-17 Fill in the Blanks Forecast Forecast Forecast 6 Mo. Ended Year Ending Year Ending 10/31/2016 10/31/2016 10/31/2017 Lift Truck Attachments, Inc, Historical Statements of Cash Flow $ in 000's For Years Ending 10/31 Actual Actual Actual Actual Description Year Ending Year Ending Year Ending 6 Mo. Ended 10/31/2013 10/31/2014 10/31/2015 4/30/2016 Profit After Tax & Bonus $34.1 $60.0 $65.7 $222.1 Add Back Depreciation $9.0 $8.1 $20.6 $7.2 Capital Expenditures - Additions to Fixed Assets at Cost -$10.6 -$38.3 -$26.0 -$6.4 Working Capital Needs: Accts. Receivable (Inc -$31.1 -$21.8 -$60.5 -$30.3 Inventory (Incr.) Decr. $17.5 -$57.6 $7.8 -$51.4 Prepaid Exp. (Incr.) De -$9.7 -$12.1 $2.4 -$22.2 Accts. Payable (Decr.) $27.3 $23.8 -$52.5 -$7.6 Accrued Exp. (Decr.) In $20.5 $18.6 $44.0 -$146.7 Total Working Capital $24.5 -$49.1 -$58.8 -$258.2 Loans (Decr.) Incr. -$3.6) $99.2 -$42.1 $30.0 Cash Flow $53.4 $79.9 -$40.6 -$5.3 Beginning Cash $26.3 $79.7 $159.6 $119.0 Ending Cash $79.7 $159.6 $119.0 $113.7 Rev. 1-31-17 $113.7 $119.0