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

Working Capital ($ 000) 2005

Assets

Accounts Receivable

Raw Materials

Finished Goods

Minimum Cash Balance

Total Current Assets

Liabilities

Wages Payable

Other Accounts Payable

Total Current Liabilities

Net Working Capital

Increase in Net Working Capital

Working Capital Days 2005 > 2005 Assets Based on: Days Days Accounts Receivable Sales Revenue 90 60 Raw Materials Raw Materials Costs 45 30 Finished Goods Raw Materials+Labor Costs 45 45 Minimum Cash Balance Sales Revenue 30 30 Liabilities Wages Payable Direct Labor+Admin Costs 15 15 Other Accounts Payable Raw Materials+Sales and Marketing 45 45

Income Statement ($ 000)

2005

2006

2007

2008

2009

2010

Sales

74,203

83,842

94,481

106,213

119,141

133,374

Cost of Goods Sold

Raw Materials

(16,538)

(18,485)

(20,606)

(22,917)

(25,429)

(28,160)

Direct Labor Costs

(18,068)

(20,795)

(23,869)

(27,334)

(31,230)

(35,611)

Gross Profit

39,597

44,562

50,006

55,962

62,482

69,603

Sales and Marketing

(11,271)

(13,867)

(16,903)

(20,435)

(23,340)

(26,128)

Administrative

(13,490)

(12,727)

(14,342)

(15,061)

(15,703)

(17,579)

EBITDA

14,836

17,968

18,761

20,466

23,439

25,896

Depreciation

(5,470)

(5,443)

(5,419)

(5,397)

(5,377)

(6,829)

EBIT

9,366

12,525

13,342

15,069

18,062

19,067

Interest Expense (net)

(79)

(6,462)

(6,462)

(6,462)

(6,462)

(6,462)

Pretax Income

9,287

6,063

6,880

8,607

11,600

12,605

Income Tax

(3,250)

(2,122)

(2,408)

(3,012)

(4,060)

(4,412)

Net Income

6,037

3,941

4,472

5,595

7,540

8,193

Estimated 2005 Balance Sheet Data for Ideko Corporation Balance Sheet ($ 000) Assets Cash and Equivalents 6,164 Accounts Receivable 18,297 Inventories 6,165 Total Current Assets 30,626 Property, Plant, and Equipment 49,230 Goodwill 72,332 Total Assets 152,188 Liabilities and Stockholders' Equity Accounts Payable 4,654 Debt 98,500 Total Liabilities 103,154 Stockholders' Equity 49,034 Total Liabilities and Equity 152,188

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.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) Data table Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Figure Ideko's Net Working Capital Forecast