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Analyze, Forecast, and Interpret Income Statement and Balance Sheet
Following are the income statement and balance sheet of ADP Inc.
Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.
AUTOMATIC DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June $ millions
Total revenues $
Operating expenses
Systems development and programming costs
Depreciation and amortization
Total cost of revenues
Selling, general, and administrative expenses
Interest expense
Total expenses
Other income expense, net
Earnings before income taxes
Provision for income taxes
Net earnings $
AUTOMATIC DATA PROCESSING INC.
Balance Sheet
$ millions June
Current assets
Cash and cash equivalents $
Accounts receivable, net
Other current assets
Total current assets before funds held for clients
Funds held for clients
Total current assets
Longterm receivables, net
Property, plant and equipment, net
Capitalized contract cost, net
Other assets
Goodwill
Intangible assets, net
Total assets $
Current liabilities
Accounts payable $
Accrued expenses and other current liabilities
Accrued payroll and payrollrelated expenses
Dividends payable
Shortterm deferred revenues
Obligations under reverse repurchase agreements
Income taxes payable
Total current liabilities before client funds obligations
Client funds obligations
Total current liabilities
Longterm debt
Other liabilities
Deferred income taxes
Longterm deferred revenues
Total liabilities
Shareholders' equity
Preferred stock, $ par value; Authorized, shares; issued none
Common stock, $ par value; Authorized, shares;
issued, shares; outstanding shares
Capital in excess of par value
Retained earnings
Treasury stock, at cost: shares
Accumulated other comprehensive loss
Total stockholders' equity
Total liabilities and stockholders' equity $
Forecast ADPs income statement and balance sheet using the following relations $ millions
Note: Complete the entire question in Excel template provided above Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with two decimal places
Note: Use negative signs with answers, when appropriate.
Assumptions
Total revenue growth growth
CAPEX as a percentage of total revenue of total revenue
Depreciation $ million
Acquired intangibles as a percentage of total revenue of total revenue
Amortization $ million
Provision for income taxes percentage of earnings before income taxes in
Taxes payable of provision for income taxes in
Stockbased compensation $ 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.
Stock repurchases $ million
Dividends $ million
Dividends payable of dividends
Goodwill, longterm debt, preferred stock, common stock, and Accumulated other comprehensive loss No change in $ amount
All other percentages are based on historic percent of total revenues
AUTOMATIC DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June $ millions
Total revenues Answer
Operating expenses Answer
Systems development and programming costs Answer
Depreciation and amortization Answer
Total cost of revenues Answer
Selling, general, and administrative expenses Answer
Interest expense Answer
Total expenses Answer
Other income expense, net Answer
Earnings before income taxes Answer
Provision for income taxes Answer
Net earnings Answer
AUTOMATIC DATA PROCESSING INC.
Balance Sheet
$ millions June
Current assets
Cash and cash equivalents Answer
Accounts receivable, net Answer
Other current assets Answer
Total current assets before funds held for clients Answer
Funds held for clients Answer
Total current assets Answer
Longterm receivables, net Answer
Property, plant a
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