please review the statements and provide for the answers below.
Analyze, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statement and balance sheet of ADP Inc. DATA PROCESSING INC. Statement of Consolidated Earnings For Year Endedjune 30, 2019, s millions Total revenues , , $7,087.6 Operating expenses 3,573.0 Systems development and programming costs ' 318.2 Depreciation and amortization 152.2 Total cost of revenues 4,043.4 Selling, general, and administrative expenses ' 1,532.1 Interest expense 65.0 Total expenses 5,640.5 Other (income) expense, net (55.6) Earnings before income taxes ' 1,502.7 Provision for income taxes ' 356.4 Net earnings '$1,146.3 DATA PROCESSING INC. Balance Sheet s millions June 30, 2019 Current assets Cash and cash equivalents ' $974.8 Accounts receivable, net ' 1,219.7 Other current assets ' 259.8 Total current assets before funds held for clients 2,454.3 Funds halffor clients 7 \"V . V V V V V V V 14,717.17 Total current assets ' 17,1714 Long-term receivables, net i 11.9 Property, plant and equipment, net ' 382.1 Capitalized contract cost, net ' 1,214.3 Other assets i 4672 Goodwill i 1,161.5 Intangible assets, net 5358 Total assets $203442 Current liabilities Accounts payable $62.8 Accrued expenses and other current liabilities 879.5 Accrued payroll and payroll-related expenses 360.6 Dividends payable 170.1 Short-term deferred revenues 110.4 ' obligat'i'oh'diae} reverse repurchase-agreements ' " ' '" 1310 Income taxes payable 27.4 Total current liabilities before client funds obligations 1,741.8 Client funds obligations 14,572.3 Total current liabilities 16,3141 Longterm debt 1,001.1 Other liabilities 399.4 Deferred income taxes 3300 Long-term deferred revenues 199.7 Total liabilities 18,2443 Shareholders' equity Preferred stock, $1.00 par value; Authorized, 0,3 shares; issued , none Common stock, $0.10 parvalue; Authorized. 1,000.0 shares; issued, 319.4 shares; outstanding 217.1 shares 320 Capital in excess of par value 5916 Retained earnings 8,750.3 Treasury stock, at cost: 102.3 shares (6,545.3) Accumulated other comprehensive loss (128.7) Total stockholders' equity 2,699.9 Total liabilities and stockholders' equity $203442 Assume total revenues grow by 13% in 2020. All other percentages (other than sales growth and provision for income taxes) are based on historic percent of total revenues. CAPEX for 2020 will be 1.1% of total revenue, and depreciation will be $922 million. Goodwill, long-term debt, preferred stock, common stock, and Accumulated other comprehensive loss will not change for the year. The company will acquire intangibles equal to 2.9% oftotal revenues and will record amortization expense of $138.1 million. Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax expense. o The company will award $83.7 million of stock-based compensation, which increases Capital in excess of par value by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year. 0 The company will continue its stock repurchases. DP will repurchase $375 million of treasury stock. 1 Dividends will be $694.70 in 2020, and dividends payable will be 26.3% of dividends. Prepare a forecast of FY2020 statement of cash flows. Note: Round your answers to one decimal place (for example, enter 14.6 for 14.55555). AUTOMATIC DATA PROCESSING, INC. Forecasted Statement of Cash Flows For Year Ended $ millions June 2020 Net income (loss) $ Add: Depreciation Add: Amortization Add: Stock based compensation Accounts receivable, net Other current assets Funds heldfor clients , Long-term receivables, net Capitalized Contract Cost, Net Other assets Accounts payable Accrued expenses and other current liabilities Accrued payroll and payroll-related expenses Short-term deferred revenues Obligations under reverse repurchase agreements Income taxes payable Client funds obligations Other liabilities Deferred income taxes Long-term deferred revenues Operating cash flow Capital Expenditures ooooooooooooooooooooooo Additional intangibles acquired Additional intangibles acquired Net cash from investing activities Dividends Dividends payable Stock buy backs Net cash from financing activities Net change in cash Beginning cash Ending cash
