The actual 2021 balance sheet and partially completed 2022 projected financial statements for MBA., Inc. are shown on the next page. Use this financial data along with the assumptions below to complete the projected statements for 2022 by filling in the boxes. All the data are in $ millions.

Be careful. Each box is worth 1.25 points and there is no partial credit! Negative numbers (e.g., expenses on the income statement, etc.) must be shown in parentheses. ROUND all calculations to the nearest million dollars!

Make the following assumptions when completing the financial statements:

1. Sales were $5,000 million in 2021.
2. On account of supply chain disruptions, production levels and sales quantities are expected to be lower. However, owing to price increases, expected sales growth for 2022 is 2%.
3. On account of supply chain disruptions, inventory levels are also expected to be lower in 2022. Inventory turnover (Cost of Goods Sold/Average Inventory) which was equal to 3.6 in 2021 is expected to increase to 4.0 for 2022.
4. Like in 2021, Interest Expense is expected to be 5% of the average of Short term debt (STD) and Long term debt (LTD) during the year.
5. The expected income tax rate for 2022 is 30%.
6. The only investing activities in 2022 relate to the purchase and sale of PPE. Plant, Property, and Equipment (PPE) was expected to be purchased and a piece of land was expected to be sold at cost for $21 million.
7. MBA, Inc. has no plans to issue common stock, but they will repurchase and immediately retire some common stock during 2022.

MBA, Inc. Projected Financial Statements for 2022
Balance Sheet (at year end)	2022	2021
Cash	150	125
Accounts Receivable		175
Inventory		1000
PPE	7125	5975
Less: Accumulated depreciation	(4025)	(3175)
Total Assets		4100
Accounts payable		430
Short term debt (STD)	530	750
Long term debt (LTD)		1500
Total Liabilities		2680
Common Stock	430	495
RE	1100	925
Total Stockholders' Equity	1530	1420
Total liabilities and TSE	4200	4100
Income Statement
Net Sales
Cost of Goods Sold
Operating Expenses
Interest expense	(112)
Income (Loss) Before Taxes
Income tax expense
Net Income (Loss)	280
Statement of Cash Flows
Net Income (Loss)	280
Depreciation Expense
Change in Accounts Receivable	(35)
Change in Inventory
Change in Accounts Payable	10
Cash Flow from Operations
Acquisition of PPE
Sale of PPE
Cash flow from Investing
Net STD issued(repaid)
Net LTD issued(repaid)
Common Stock Issued (repurchased)
Dividends
Cash Flow from Financing	(190)
Increase (Decrease) in cash