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Required: 1) complete the income statement by building on the FY'18 results out over the next 5 years. A. Complete the amortization tables for both
Required: 1) complete the income statement by building on the FY'18 results out over the next 5 years. A. Complete the amortization tables for both the equipment leases and the loan to get the interest expense and complete the depreciation table for the fixed assets to get the depreciation expense. B. Spread the numbers on the income statement following Dusty's estimates. (Suggestion: the income statement (1b) should be done on the same tab as 1a so the year Columns line up. This will help in working the relationships among the financial statements.) 2) Spread the numbers on the balance sheet. A/R landscape maintenance should be kept at 50 days. A/R landscape construction should be kept at 55 days. A/R landscape design should be kept at 35 days. Inventory of materials for the landscape maintenance and landscape construction segments of the business is not a major factor in this business. Dusty tries to keep the inventory at 14 days(26 times turn). At this point, the balance sheet can be completed, as the "cash" number is a plug to balance. (Hint: know liabilities and equity and all other asset balances.) Use the end of the period ratio formulation not beginning and ending averages although you have that date. (3) spread the numbers on the cash flow statement. (This format roughly follows the "indirect method" of the text.) Hook the ending cash balance on the cash flow statement to the cash on to the balance sheet (2). The balance sheet should now balance
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