We have created hypothesized scenarios for you to forecast: Hypothesized Scenario 1 Assume a new competitor enters the market and that drives Gross Margin to 25% What is the forecasted Net Income? What is the forecasted Cash balance? Hypothesized Scenario 2 Set the DSO equal to 10 days Leave the Gross Margin at 25% What is the forecasted Cash balance? See how the: Reduction of DSOs reduced Accounts Receivable' on the Balance Sheet and Impacted 'Increase in Accounts Receivable' on the Cash Flow Statement, Which impacts 'Cash' on the Balance Sheet. Hypothesized Scenario 3 Construct a new plant increasing CapEx to $100 (remember that this is a -100 in the model as it is a use of cash) Leave the Gross Margin at 25% and the DSO at 10% What is the forecasted Cash balance? What is the forecasted PP&E balance? See how the: Investment in Capex has an impact on PP&E, Affects Cash Flow on the Cash Flow Statement, Reduces the Cash Balance on the Balance Sheet and Lowers GAAP Net Income as Depreciation rises. We have created hypothesized scenarios for you to forecast: Hypothesized Scenario 1 Assume a new competitor enters the market and that drives Gross Margin to 25% What is the forecasted Net Income? What is the forecasted Cash balance? Hypothesized Scenario 2 Set the DSO equal to 10 days Leave the Gross Margin at 25% What is the forecasted Cash balance? See how the: Reduction of DSOs reduced Accounts Receivable' on the Balance Sheet and Impacted 'Increase in Accounts Receivable' on the Cash Flow Statement, Which impacts 'Cash' on the Balance Sheet. Hypothesized Scenario 3 Construct a new plant increasing CapEx to $100 (remember that this is a -100 in the model as it is a use of cash) Leave the Gross Margin at 25% and the DSO at 10% What is the forecasted Cash balance? What is the forecasted PP&E balance? See how the: Investment in Capex has an impact on PP&E, Affects Cash Flow on the Cash Flow Statement, Reduces the Cash Balance on the Balance Sheet and Lowers GAAP Net Income as Depreciation rises