Projected Growth assignment - Sales growth rates each year

Do not hard code numbers for projections.

Project 2022 - 2024 Income Statement and Balance Sheet. Assumptions: - Sales growth rates in each of next 3 years: 15%,33%,40% - Operating expenses/sales percentage stay at 2021 level - Cost of goods sold as \% of sales stays at 2021 level for 2022 and then improves by .05 in 2023 and by another. 03 in 2024 - 40% tax rate - No dividends or new stock issued - Interest expense fixed at $400 / year - Bank loan and LT debt stay constant - 2022 A/R days = year 2021 days, then decrease by 3 days in 2023 \& another 3 days in 2024 - 2022 Inventory days = year 2021 days then decrease by 3 days in 2023 \& another 3 days 2024 - A/P days stays at year 2021 days - Net fixed assets and accruals keep relationship with sales - Required cash fixed at 1000 - Calculate Additional Funds Needed as plug (to get Balance Sheet to balance!) Calculate 2022 breakeven revenues and units. Assumptions: - All operating expenses (excluding interest) are fixed - Average price per unit is $50 Sales Growth \% of Current Sales Average price per item Cost of Goods Sold $ of Sales Operating Expense % of Forecast Sales Tax Rate % of EBT Dividend Rate % of NI Required Cash % of Forecast Sales A./R days Inventory Days Net Fixed Assets % of Forecast Sales Days Payable Accrued Liability % of Forecast Sales Assumptions (use these to drive projected IS and BS) \begin{tabular}{|l|l|l|} \hline 0.15 & 0.33 & 0.4 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Cash Dividends (0\% of NI) Added Retained Earnings 0 Balance Sheet Required Cash A/R Inventories Total Current Assets Net Fixed Assets Total Assets 960 \begin{tabular}{|l|r|l|} \hline Accounts Payable & 1600 \\ \hline Bank Loan & 1800 \\ \hline Accured Liability & 1200 \\ \hline Total Current Liability & 4600 \\ \hline Long Term Debt & 2200 \\ \hline Common Stock & 2400 \\ \hline Retained Earnings & 2800 \\ \hline Additional Funds Needed (AFN) & 0 \\ \hline Total Liability \&. Equity & 12000 \\ \hline \end{tabular} BREAKEVEN CALCULATION Fixed Costs Gross margin BREAKEVEN REVENUES Price per unit Cost per unit Contribution per unit BREAKEVEN UNITS