Under the assumptions that Ideko's market share will increase by 0.55 percent per year (implying that the investment, financing, and depreciation will be adjusted accordingly) and the following forecasts calculate Ideko's working capital requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). Ideko's pro-forma income statements for 2005-2010 are shown here , while its balance sheet for 2005 is shown here Calculate Ideko's working capital requirements through 2010 below: (Round to the nearest $ 000.) Working Capital ($ 000) 2005 Assets Accounts Receivable Raw Materials Finished Goods Minimum Cash Balance Wil u Total Current Assets Liabilities Wages Payable Other Accounts Payable Total Current Liabilities Net Working Capital Increase in Net Working Capital i - Data Table i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement ($ 000) 2005 2006 2007 2008 2009 2010 Sales 75,053 84,820 95,600 107,487 120,587 135,009 2005 Cost of Goods Sold > 2005 Days 60 Raw Materials (15,487) (17,331) Ideko's Working Capital Requirements Working Capital Days Assets Based on: Accounts Receivable Sales Revenue Raw Materials Raw Materials Costs Finished Goods Raw Materials + Labor Costs Minimum Cash Balance Sales Revenue Liabilities Wages Payable Direct Labor + Admin Costs Other Accounts Payable Raw Materials + Sales and Marketing Days 90 45 45 30 (19,341) (21,534) (24,020) (27,591) (23,921) (31,621) (26,518) (36,166) Direct Labor Costs (18,070) (20,863) 45 30 30 Gross Profit 41,496 46,626 52,239 58,362 65,045 72,325 Sales and Marketing (26,070) 15 45 15 45 (11,190) (13,517) (13,792) (12,731) (16,835) (20,380) (14,350) (15,059) (23,285) (15,688) Administrative (17,565) EBITDA 16,789 20,103 21,054 22,923 26,072 28,690 (5,540) Depreciation (5,491) (5,447) (5,407) (5,372) i (6,929) Figure EBIT 11,249 14,612 15,607 17,516 20,700 21,761 Wages P Interest Expense (net) (74) (6,676) (6,676) (6,676) (6,676) (6,676) Other Aco Pretax Income 7,936 8,931 10,840 14,024 15,085 TABLE 19.9 SPREADSHEET Ideko's Net Working Capital Forecast 11,175 (3,911) Total Current Income Tax (2,778) (3,126) (4,908) (5,280) 2005 (3,794) 7,046 2006 2007 2008 2009 2010 Net Working Net Income 7,264 5,158 5,805 9,116 9,805 Increase in N Print Done Year Working Capital ($ 000) Assets 1 Accounts Receivable 2 Raw Materials 3 Finished Goods 4 Minimum Cash Balance 5 Total Current Assets Liabilities 6 Wages Payable 7 Other Accounts Payable 8 Total Current Liabilities Net Working Capital 9 Net Working Capital (5 - 8) 10 Increase in Net Working Capital 18,493 14,525 1,973 1,534 4,192 4,967 6,164 7,262 30,822 28,288 16,970 1,775 5,838 8,485 33,067 19,689 2.039 6,815 9,845 38,388 22,709 26,059 2.329 2,646 7,911 9,138 11,355 13.030 44,304 50,872 Enter any numbe 1.294 3,360 4,654 1,433 4,099 5,532 1,695 4,953 6,648 1,941 5,938 7,879 2.211 6.900 9,110 2,570 7,878 10,448 5 parts remaining 26,168 22,756 (3,4121 26,419 3,663 30,509 4,089 35,194 40,425 4,685 5,231 ur All Check Answer Under the assumptions that Ideko's market share will increase by 0.55 percent per year (implying that the investment, financing, and depreciation will be adjusted accordingly) and the following forecasts calculate Ideko's working capital requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). Ideko's pro-forma income statements for 2005-2010 are shown here , while its balance sheet for 2005 is shown here Calculate Ideko's working capital requirements through 2010 below: (Round to the nearest $ 000.) Working Capital ($ 000) 2005 Assets Accounts Receivable Raw Materials Finished Goods Minimum Cash Balance Wil u Total Current Assets Liabilities Wages Payable Other Accounts Payable Total Current Liabilities Net Working Capital Increase in Net Working Capital i - Data Table i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement ($ 000) 2005 2006 2007 2008 2009 2010 Sales 75,053 84,820 95,600 107,487 120,587 135,009 2005 Cost of Goods Sold > 2005 Days 60 Raw Materials (15,487) (17,331) Ideko's Working Capital Requirements Working Capital Days Assets Based on: Accounts Receivable Sales Revenue Raw Materials Raw Materials Costs Finished Goods Raw Materials + Labor Costs Minimum Cash Balance Sales Revenue Liabilities Wages Payable Direct Labor + Admin Costs Other Accounts Payable Raw Materials + Sales and Marketing Days 90 45 45 30 (19,341) (21,534) (24,020) (27,591) (23,921) (31,621) (26,518) (36,166) Direct Labor Costs (18,070) (20,863) 45 30 30 Gross Profit 41,496 46,626 52,239 58,362 65,045 72,325 Sales and Marketing (26,070) 15 45 15 45 (11,190) (13,517) (13,792) (12,731) (16,835) (20,380) (14,350) (15,059) (23,285) (15,688) Administrative (17,565) EBITDA 16,789 20,103 21,054 22,923 26,072 28,690 (5,540) Depreciation (5,491) (5,447) (5,407) (5,372) i (6,929) Figure EBIT 11,249 14,612 15,607 17,516 20,700 21,761 Wages P Interest Expense (net) (74) (6,676) (6,676) (6,676) (6,676) (6,676) Other Aco Pretax Income 7,936 8,931 10,840 14,024 15,085 TABLE 19.9 SPREADSHEET Ideko's Net Working Capital Forecast 11,175 (3,911) Total Current Income Tax (2,778) (3,126) (4,908) (5,280) 2005 (3,794) 7,046 2006 2007 2008 2009 2010 Net Working Net Income 7,264 5,158 5,805 9,116 9,805 Increase in N Print Done Year Working Capital ($ 000) Assets 1 Accounts Receivable 2 Raw Materials 3 Finished Goods 4 Minimum Cash Balance 5 Total Current Assets Liabilities 6 Wages Payable 7 Other Accounts Payable 8 Total Current Liabilities Net Working Capital 9 Net Working Capital (5 - 8) 10 Increase in Net Working Capital 18,493 14,525 1,973 1,534 4,192 4,967 6,164 7,262 30,822 28,288 16,970 1,775 5,838 8,485 33,067 19,689 2.039 6,815 9,845 38,388 22,709 26,059 2.329 2,646 7,911 9,138 11,355 13.030 44,304 50,872 Enter any numbe 1.294 3,360 4,654 1,433 4,099 5,532 1,695 4,953 6,648 1,941 5,938 7,879 2.211 6.900 9,110 2,570 7,878 10,448 5 parts remaining 26,168 22,756 (3,4121 26,419 3,663 30,509 4,089 35,194 40,425 4,685 5,231 ur All Check