Use the following information and answer the questions
       

Assumptions ARPU - Average Revenue per User (annual, beginning customers) $ Customer Assumptions Customer Acquisition Expense (per new customer) Customer Churn (% of beginning customers who quit service) Cost of Goods Sold per User (use beginning customers) SG&A expense: Total Customer Acquisition Marketing Expense Other SG&A expenses Capital Expenditures (Capex) Depreciation (% of lagged fixed assets) Interest Expense (% of lagged NP and LTD) Average Tax Rate $ Required Cash Days Sales in Inventory Days Sales in Receivables Days Payables Outstanding Capital Structure Decisions Dividend Payout Ratio Planned LTD (year end) Equity Account (Par + APIC) $ "Success-Based" Capex (capital expenditures / new customer) $ "Maintenance" Capex $ $ 2020 1,200 $ 400 $ 10% 400 $ 2021 1,500 $ 10% 10% 25% 450 $ 20% 500 $ 120,000 $ 150,000 $ 180,000 80,000 $ 100,000 $100,000 800 $ 600 $ Equals Depreciation Expense 0% 500,000 2,750,000 10% 10% 25% Equal to Accounts Payable 73 40 30 2022 1,800 73 45 30 10% 600,000 2,750,000 450 20% 600 500 10% 10% 25% 73 45 30 25% 700,000 2,600,000 Assumptions ARPU - Average Revenue per User (annual, beginning customers) $ Customer Assumptions Customer Acquisition Expense (per new customer) Customer Churn (% of beginning customers who quit service) Cost of Goods Sold per User (use beginning customers) SG&A expense: Total Customer Acquisition Marketing Expense Other SG&A expenses Capital Expenditures (Capex) Depreciation (% of lagged fixed assets) Interest Expense (% of lagged NP and LTD) Average Tax Rate $ Required Cash Days Sales in Inventory Days Sales in Receivables Days Payables Outstanding Capital Structure Decisions Dividend Payout Ratio Planned LTD (year end) Equity Account (Par + APIC) $ "Success-Based" Capex (capital expenditures / new customer) $ "Maintenance" Capex $ $ 2020 1,200 $ 400 $ 10% 400 $ 120,000 $ 80,000 $ 10% 10% 25% 2021 1,500 $ 450 $ 20% 500 $ 0% 500,000 2,750,000 800 $ 600 $ Equals Depreciation Expense 150,000 $ 180,000 100,000 $ 100,000 10% 10% 25% Equal to Accounts Payable 73 40 30 2022 1,800 73 45 30 10% 600,000 2,750,000 450 20% 600 500 10% 10% 25% 73 45 30 25% 700,000 2,600,000