Prepare proforma forecasts of financial statements of Simple, Inc for 2021 and 2022. Use the 2020 proforma we discussed in class as guidance. What are the companys forecasted Net Earnings (profit/loss after tax) and additional financing requirements (overdrafts) in 2021 and in 2022?

2020 Assumptions estimated 15% 39.80% 430.2 1712 259.0 Simple, Inc. Financial Statements in $ millions) Fiscal Year Ended Dec. 31 2017 2018 2019 (5) (% sales) (5) (% sales) (5) % sales Past data Income Statement Turnover 303.7 100.0 330.1 100.0 374.1 100.0 13.33% Cost of sales 127.7 42.0 130.9 39.7 149.0 39.8 % of sales Gross profit 176.0 58.0 199.2 60.3 225.1 60.2 mechanical Operating expenses - excluding exceptional cu 151.4 49.9 166.2 50.3 195.7 52.3% of sales - exceptional costs 4.5 1.5 0.0 0.0 11.2 3.0 unusual Restructuring costs 16.6 5.5 2.7 0.8 1.0 0.3 unusual Net interest expense 0.0 1.5 0.5 4.4 1.2 interest rate Profit before tax 3.4 1.1 28.8 8.7 12.8 3.4 mechanical Tax expense 8.0 2.6 10.4 3.2 3.5 0.9=pre-tax tax ra Profit/(loss) after tax (4.6) -1.5 18.4 5.6 9.3 2.5 mechanical Ordinary dividends 10.9 3.6 10.9 3.3 10.9 2.9 constant Profit/(loss) retained (15.5) 7.5 2.3 (1.6) -0.4 mechanical sales growth 8.69% 13.33% interest rate, approximate 9.13% tax rate 27.34% 50% 0% 0% 216.4 0 0 5.2 0.1 9% 37.4 27.34% 10.2 272 10.9 16.3 -5.1 2017 (5) Fiscal Year Ended Dec. 31 2018 2019 (% sales) (5) (% sales) (5) % sales) 34.0 11.2 19.2 5.8 13.7 27.8 38.6 12.5 87.8 0.0 200.7 9.2 12.7 4.1 28.9 0.0 66.1 30.3 44.7 15.6 104.7 6.0 220.5 9.2 13.5 4.7 31.7 1.8 66.8 30.3 51.3 17.5 110.6 6.7 230.1 3.7 min level PLUG 8.1 DRO 13.7|DSI 4.7% of sales 29.6 % of sales 1.8% of sales 61.5 mechanical 29.6 125.7 4.68% 29.56% 1.79% Balance Sheet Assets Cash Excess cash (PLUG) Accounts receivable Inventories Other current assets Net fixed assets Other assets Total assets Liabilities and equity Accounts payable Taxes payable Accruals Overdrafts (PLUG) Other current liabilities Long-term liabilities Other liabilities Shareholders' equity Total liabs. and equity 13.7 0 34.8 59.0 20.1 1272 7.7 262.5 13.0 11.3 10.8 0.0 21.6 28.0 1.7 114.3 200.7 4.3 3.7 3.6 0.0 7.1 9.2 0.6 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 6.2 3.5 4.7 0.1 4.0 11.1 0.3 36.8 66.8 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 230.1 2.9DPO 26.2 1.9% of sales 1.90% 3.1 % of sales 3.07% 0-2 PLUG 4.5% of sales 4.52% 16.4 DEBT constant 0.1% of sales 0.11% 32.5) last year's + IS ret eam 61.5 mechanical difference 12.3 8.2 132 9.1 19.4 61.9 0.5 137.9 262.5 9.1 37.6 66.1 1. Net earnings 2. Overdrafts base case 272 27.0949 9.1 9.3 TA>TLE TACTLE PLUG OVERDRAFTS 2020 Assumptions estimated 15% 39.80% 430.2 1712 259.0 Simple, Inc. Financial Statements in $ millions) Fiscal Year Ended Dec. 31 2017 2018 2019 (5) (% sales) (5) (% sales) (5) % sales Past data Income Statement Turnover 303.7 100.0 330.1 100.0 374.1 100.0 13.33% Cost of sales 127.7 42.0 130.9 39.7 149.0 39.8 % of sales Gross profit 176.0 58.0 199.2 60.3 225.1 60.2 mechanical Operating expenses - excluding exceptional cu 151.4 49.9 166.2 50.3 195.7 52.3% of sales - exceptional costs 4.5 1.5 0.0 0.0 11.2 3.0 unusual Restructuring costs 16.6 5.5 2.7 0.8 1.0 0.3 unusual Net interest expense 0.0 1.5 0.5 4.4 1.2 interest rate Profit before tax 3.4 1.1 28.8 8.7 12.8 3.4 mechanical Tax expense 8.0 2.6 10.4 3.2 3.5 0.9=pre-tax tax ra Profit/(loss) after tax (4.6) -1.5 18.4 5.6 9.3 2.5 mechanical Ordinary dividends 10.9 3.6 10.9 3.3 10.9 2.9 constant Profit/(loss) retained (15.5) 7.5 2.3 (1.6) -0.4 mechanical sales growth 8.69% 13.33% interest rate, approximate 9.13% tax rate 27.34% 50% 0% 0% 216.4 0 0 5.2 0.1 9% 37.4 27.34% 10.2 272 10.9 16.3 -5.1 2017 (5) Fiscal Year Ended Dec. 31 2018 2019 (% sales) (5) (% sales) (5) % sales) 34.0 11.2 19.2 5.8 13.7 27.8 38.6 12.5 87.8 0.0 200.7 9.2 12.7 4.1 28.9 0.0 66.1 30.3 44.7 15.6 104.7 6.0 220.5 9.2 13.5 4.7 31.7 1.8 66.8 30.3 51.3 17.5 110.6 6.7 230.1 3.7 min level PLUG 8.1 DRO 13.7|DSI 4.7% of sales 29.6 % of sales 1.8% of sales 61.5 mechanical 29.6 125.7 4.68% 29.56% 1.79% Balance Sheet Assets Cash Excess cash (PLUG) Accounts receivable Inventories Other current assets Net fixed assets Other assets Total assets Liabilities and equity Accounts payable Taxes payable Accruals Overdrafts (PLUG) Other current liabilities Long-term liabilities Other liabilities Shareholders' equity Total liabs. and equity 13.7 0 34.8 59.0 20.1 1272 7.7 262.5 13.0 11.3 10.8 0.0 21.6 28.0 1.7 114.3 200.7 4.3 3.7 3.6 0.0 7.1 9.2 0.6 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 6.2 3.5 4.7 0.1 4.0 11.1 0.3 36.8 66.8 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 230.1 2.9DPO 26.2 1.9% of sales 1.90% 3.1 % of sales 3.07% 0-2 PLUG 4.5% of sales 4.52% 16.4 DEBT constant 0.1% of sales 0.11% 32.5) last year's + IS ret eam 61.5 mechanical difference 12.3 8.2 132 9.1 19.4 61.9 0.5 137.9 262.5 9.1 37.6 66.1 1. Net earnings 2. Overdrafts base case 272 27.0949 9.1 9.3 TA>TLE TACTLE PLUG OVERDRAFTS