What do you expect the financial position of the business to be in 2016? Extend the financial statements through 2016, assuming that Bob Brown grows revenue by 30%. Note: To make the balance sheet balance, define cash as equal to (Curr. liab. + Net worth) (Accounts receivable + Inventory + OCA + Net fixed assets)

	2012	2013	2014	2015
Profit and loss statement
Revenue	788.5	807.6	908.2	1048.8
Cost of goods sold	402.9	428.8	437.7	503.4
Gross profit	385.6	378.8	470.5	545.4
SG&A expense	301.2	302.0	356.0	404.5
Depreciation	34.2	38.4	36.3	40.9
Operating profit	50.2	38.4	78.2	100.0
Taxes	17.6	13.1	26.2	39.2
Net profit	32.6	25.3	52.0	60.8
Balance sheet
Cash	120.1	105.2	66.8	9.4
Accounts receivable	90.6	99.5	119.5	146.4
Inventory1	468.3	507.6	523.4	656.9
Other current assets2	20.9	19.3	22.6	20.9
Current assets	699.9	731.6	732.3	833.6
Net fixed assets3	332.1	332.5	384.3	347.9
Total assets	1032.0	1064.1	1116.6	1181.5
Accounts payable	6.0	5.3	4.5	5.0
Wages payable	19.7	22.0	22.1	24.4
Other payables	10.2	15.4	16.6	17.9
Current liabilities	35.9	42.7	43.2	47.3
Net worth	996.1	1021.4	1073.4	1134.2
Capital expenditure	22.0	38.8	88.1	4.5
Purchases4	140.8	145.2	161.2	185.1

	2012	2013	2014	2015		Benchmark1
Revenue growth	2.9%	2.4%	12.5%	15.5%		(1.8)%
Gross margin (Gross profit / Revenue)	48.9%	46.9%	51.8%	52.0%		48.9%
Operating margin (Op. profit / Revenue)	6.4%	4.8%	8.6%	9.5%		7.6%
Net profit margin (Net profit / Revenue)	4.1%	3.1%	5.7%	5.8%		2.8%
Return on assets (Net profit / Total assets)	3.2%	2.4%	4.7%	5.1%		2.9%
Return on capital (Net profit / Total capital)	3.3%	2.5%	4.8%	5.4%		4.0%
Receivable days (AR / Revenue * 365)	41.9	45.0	48.0	50.9		21.8
Inventory days (Inventory / COGS * 365)	424.2	432.1	436.5	476.3		386.3
Payable days (AP / Purchases * 365)	15.6	13.3	10.2	9.9		26.9
NFA turnover (Revenue / NFA)	2.4	2.4	2.4	3.0		2.7

1. What is your assessment of the financial performance of Horniman Horticulture?

2. Do you agree with Maggie Browns accounts-payable policy?

3. What explains the erosion of the cash balance?