These are financial projections for An investment bank. Develop an operating cash flow forecast for years 2018 to 2022. Use avg effective tax rate given from income statement 2015-2017

2018 2019 2020 2021 2022 Interest expense projections $1 $1 0 $o $0 Valuation based on 7 times forward (2018) EBITDA $44.34x 7+$26.2 (cash) $336.60 million. Assumptions Growth in sales is 20% per annum until 2022, after OCF will grow at 4% indefinitely Gross margin 80% of sales R&D expenses 10% of sales SG&A expenses 33% of sales Depreciation expense 20% growth per annum Capital expenditures and intangibles annual investment 6% of sales working capital reduction is 30% of sales in 2018 only but it is increased back on year 2022 Income Statement For the year ended March 31 (in millions of dollars) 2017 2016 2015 99.87 88.64 77.00 20.03 17.73 15.40 79.84 70.91 61.60 11.37 13.80 10.00 34.64 32.75 29.00 33.83 24.36 22.60 10.01 2.57 1.40 1.35 0.95 0.00 22.46 20.84 21.20 Total revenue Cost of goods sold Gross proft R&D expense Selling and general admin. Expense EBITDA Depreciation and amortization nterest expense Income before tax 6.77 6.36 6.39 Income tax 15.70 14.48 14.81 Net Income after tax