I am working on a discounted cash flow model for a company.

The worksheet I have states less(plus) nno..

the company has no liabilites ..

my firm value is currently negative....do i add or subtract the nno?

if a firm has no interest expense is NOPAT equal to net income?

here is the balance sheet ..

and here is the identification of operating assets and liabilites ..there are no non operating liabilities so noa is just the total of non operating assets correct ?

Autove PAPERS 8 - Draw File Home insert Page Layout Font Data ove View Developer mut Help ACROBAT deng Xco scopy Paste of format HA A : www OA Enter Account $ - 96 had BI Conditional To Callion Formatting Table Ch ch HO Style BOZ 60 G H D 40 WACC from Guru Focus 41 42 Table 5. 1 Valuation of Ford Motor Company is Discounted Cash Flow Model DCF) 4 REPORTED Horizon Period 44 ZOOM 2020 3021 2022 2023 Terminal Period 2025 2024 30% 30% 25 Sales(Unrounded) $ 629.658.00 S 309.455.40 $ 1.052.293.00 $1,367_979.63 S 1.778,373.512.134,048.29 46 Forecasted Sales Growth 30% 47 30% 90 48 Sales(Rounded) $ 622,658 309.455$ 1,059,292 S 1,367.980s 49 NOPAT 1.778 374 $ 2.134,048 25.9955 39,892 42.765 S 50 NOA 55-5955 22.224 $ 86,728 S 367,960 218 348 $ 293.852 $ 369.00 $ 479.711 S 51 575,653 52 Increase in NOA $ 50,388 $ 65.504 85.156 $ 53 FCFF(NOPAT-Increase in NOA) 110,702 8 95,942 S (17.492) $ (22,739) 8 (29.561) $ (38.429) (9.214) 54 Discount Factor[1/(1+r,..) 0.92928 0.86356 0.80249 0.74574 55 PV of Horizon FCFF $ (16,255) $ ( (29,637) $ (23.722) S (28,658) 56 57 Cumulative present value of terms (88.21.3) $8 Present Value of Terminal FCFF $ 55.457 59 Total Firm Value $ (32,314:43) 60 Less(Plus) NNO $ 855.194 61 62 Firm Equity Value $ 899379.5% 63 Shares Outstanding 333641 64 Stock value per share $ 3-52 65 ACTUAL PRICE 06-3 66 Close price on Jan 31st 2020) 67 68 69 Valuation of Ford Motor Company via Residual Operating Income(ROPD) Model utod Horizon Period Terminal Period As of January 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 283,134 $ 63.674 Marketable securities 572,060 112,777 Accounts receivable, net of allowances of $7634 and 52,071 as of January 31, 2020 and 2019, respectively 120.435 63,613 Deferred contract acquisition costs, current 44.885 26,453 Prepaid expenses and other current assets 75,008 10.252 Total current sets 1,095,522 276,719 Deferred contract acquisition costi, noncurrent 46,245 29,063 Property and equipment, net 57,138 37,275 Operating lease right-of-use assets 68,608 Other assets, no current 22.332 11.508 Total assets 1,289.845 5 354.565 Liabilities, convertible preferred stock and stockholders' equity (deficit) Current liabilities Accounts payable 1.5965 4.963 Accrued expenses to other current liabilities 122,692 32,256 Deferred Devemo, current 209 542 115,122 Total current liabilities 333,830 152,341 Deferred revenue, monument 20.994 10,651 Operating lease liabilities, noncurrent 64,792 Other liabilities, noncurrent 36,286 39,460 Total liabilities 455.902 202,452 Commitments and contingencies (Note 8) Convertible preferred stock 5000l par value per share, zero and 158.104.540 shares authorized of January 31, 2020 and 2019. respectively, zero and 152,665,604 shares issued and outstanding as of Jury 31, 2020 and 2019, respectively 159,552 Stockholders' equity (deficit) Preferred stock. $0 001 par value per share, 200,000,000 and to shares authorized as of Tamry 31 2020 and 2019, respectively, seto share ined and outstanding as of Jamuary 31, 2000 and 2019 Common stock, 50.001 par value per shure, 2.000.000,000 and 320.000.000 Class A shares authorized as of January 31, 2020 and 2019. respectively. 123.391.114 and shares issued and outstanding as of January 31, 2020 and 2019, respectively, 300 000 000 Class B shares uthorised as of January 31, 2020 and 2019, 155,316,77 and 90,327,435 shares isnied and outstanding as of Jury 31, 2020 and 2019, respectively 277 89 Additional paid in capital 832705 17,750 Accumulated other comprehensive income oss) 809 Retained emings (nemated deficit) 152 05,153) Total stockholders' equity (deficit 833 913 (7.439) Total liabilities, couvetable preferred stock, an dockholders equuty (deficio 1.269.8455 354565 The accompanying notes are an egral part of the consolidated financial statements (135) OLG 2019 $63,624 3.1 Net Operating Asset Turnover Calculating Average Net Operating Assets from Consolidated Balance Sheets Zoom Assets 2020 Cash and Cash Equivalents Non Operating $283.134 Marketable Securities Non Operating $572,060 Accounts Receivable Operating $120,435 Prepaid Expenses Operating $75,008 Property. Plant, Equipment Operating $57.138 Other Assets Operating $75.9531 Total Operating Assets $328 534 $112. $63,613 $10,252 $37 275 $29.932 $133.472 Zoom Liabilities Accounts Payable Accrued Expenses Other Liabilities Total Operating Liabilities Operating Operating Operating 2020 $1,596 $129,692 $36,286 $160.574 2021 $4.963 $32,256 $39,460 $76,679 NOA Average NOA $167.960 $56.793 $112.376.50 I Display Settings Focus ZOOM REPORTED 2020 Horizon Period 2022 2023 2021 Terminal Per 2025 2024 5.8 $ Sales(Unrounded) $ 622,658.00 $ 647.564.32 $ 673,466.89 $ 700,405-57 $ 728,421.79 $ Forecasted Sales Growth 750,274 4% 4% 4% Sales(Rounded) $ 622,658 647.564 $ NOPAT 673.467 S 700.406 $ $ 728,422 $ 750,2 25.305 $ 26,317 S 27:370 $ 28,465 $ NOA $ 29,603 $ 30,4 167,960 $ 174.678 S 181,666 $ 188,932 $ 196,489 $ 202.3 Increase in NOA $ 6,718 $ 6,987 $ 7,267 $ FCFF(NOPAT-Increase in NOA) 7.557 $ $ 19,599 $ 20,383 $ 21,198 22,046 $ 24.59 Discount Factor[1/(1+2) 0.92928 0.86356 0.80249 0.74574 PV of Horizon FCFF 18,213 S 17,602 $ 17,011 16,441 Cumulative present value of term $ 69,266.60 3 Present Value of Terminal FCFF $ (148,045) 9 Total Firm Value $ (78,778.74) Less(Plus) NNO $ 855,194 1 52 Firm Equity Value $ 776,415.26 53. Shares Outstanding 233641 54 Stock value per share $3-32 55 ACTUAL PRICE 76.3 66 Close price on Jan 31st 2020) 67 68 69 Valuation of Ford Motor Company via Residual Operating Income(ROPT) Model 70 Reported Horizon Period Terminal Period 71 ZOOM 2020 2022 2023 2024 2025 72 Sales(Unrounded) $ 622,658.00 $ 647,564-32 S. 673.466.89 $ 700,405-57 $ 728,421.79 S 750,274.44 73 Forecasted Growth Rate 74 S 75 Sales (Rounded) 622,658.00 $ 647.564.00 $ 673.467.00 $ 700,406.00 S $728.422.00 750,274.00 $ 76 NOPAT s 26,317.20 S 27.369.89 S 28,464.68 25,305.00 $ 29.603.27 30,491.37 CA ohnson 916 rohalna TT NO 2021 e GRAFO Autove PAPERS 8 - Draw File Home insert Page Layout Font Data ove View Developer mut Help ACROBAT deng Xco scopy Paste of format HA A : www OA Enter Account $ - 96 had BI Conditional To Callion Formatting Table Ch ch HO Style BOZ 60 G H D 40 WACC from Guru Focus 41 42 Table 5. 1 Valuation of Ford Motor Company is Discounted Cash Flow Model DCF) 4 REPORTED Horizon Period 44 ZOOM 2020 3021 2022 2023 Terminal Period 2025 2024 30% 30% 25 Sales(Unrounded) $ 629.658.00 S 309.455.40 $ 1.052.293.00 $1,367_979.63 S 1.778,373.512.134,048.29 46 Forecasted Sales Growth 30% 47 30% 90 48 Sales(Rounded) $ 622,658 309.455$ 1,059,292 S 1,367.980s 49 NOPAT 1.778 374 $ 2.134,048 25.9955 39,892 42.765 S 50 NOA 55-5955 22.224 $ 86,728 S 367,960 218 348 $ 293.852 $ 369.00 $ 479.711 S 51 575,653 52 Increase in NOA $ 50,388 $ 65.504 85.156 $ 53 FCFF(NOPAT-Increase in NOA) 110,702 8 95,942 S (17.492) $ (22,739) 8 (29.561) $ (38.429) (9.214) 54 Discount Factor[1/(1+r,..) 0.92928 0.86356 0.80249 0.74574 55 PV of Horizon FCFF $ (16,255) $ ( (29,637) $ (23.722) S (28,658) 56 57 Cumulative present value of terms (88.21.3) $8 Present Value of Terminal FCFF $ 55.457 59 Total Firm Value $ (32,314:43) 60 Less(Plus) NNO $ 855.194 61 62 Firm Equity Value $ 899379.5% 63 Shares Outstanding 333641 64 Stock value per share $ 3-52 65 ACTUAL PRICE 06-3 66 Close price on Jan 31st 2020) 67 68 69 Valuation of Ford Motor Company via Residual Operating Income(ROPD) Model utod Horizon Period Terminal Period As of January 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 283,134 $ 63.674 Marketable securities 572,060 112,777 Accounts receivable, net of allowances of $7634 and 52,071 as of January 31, 2020 and 2019, respectively 120.435 63,613 Deferred contract acquisition costs, current 44.885 26,453 Prepaid expenses and other current assets 75,008 10.252 Total current sets 1,095,522 276,719 Deferred contract acquisition costi, noncurrent 46,245 29,063 Property and equipment, net 57,138 37,275 Operating lease right-of-use assets 68,608 Other assets, no current 22.332 11.508 Total assets 1,289.845 5 354.565 Liabilities, convertible preferred stock and stockholders' equity (deficit) Current liabilities Accounts payable 1.5965 4.963 Accrued expenses to other current liabilities 122,692 32,256 Deferred Devemo, current 209 542 115,122 Total current liabilities 333,830 152,341 Deferred revenue, monument 20.994 10,651 Operating lease liabilities, noncurrent 64,792 Other liabilities, noncurrent 36,286 39,460 Total liabilities 455.902 202,452 Commitments and contingencies (Note 8) Convertible preferred stock 5000l par value per share, zero and 158.104.540 shares authorized of January 31, 2020 and 2019. respectively, zero and 152,665,604 shares issued and outstanding as of Jury 31, 2020 and 2019, respectively 159,552 Stockholders' equity (deficit) Preferred stock. $0 001 par value per share, 200,000,000 and to shares authorized as of Tamry 31 2020 and 2019, respectively, seto share ined and outstanding as of Jamuary 31, 2000 and 2019 Common stock, 50.001 par value per shure, 2.000.000,000 and 320.000.000 Class A shares authorized as of January 31, 2020 and 2019. respectively. 123.391.114 and shares issued and outstanding as of January 31, 2020 and 2019, respectively, 300 000 000 Class B shares uthorised as of January 31, 2020 and 2019, 155,316,77 and 90,327,435 shares isnied and outstanding as of Jury 31, 2020 and 2019, respectively 277 89 Additional paid in capital 832705 17,750 Accumulated other comprehensive income oss) 809 Retained emings (nemated deficit) 152 05,153) Total stockholders' equity (deficit 833 913 (7.439) Total liabilities, couvetable preferred stock, an dockholders equuty (deficio 1.269.8455 354565 The accompanying notes are an egral part of the consolidated financial statements (135) OLG 2019 $63,624 3.1 Net Operating Asset Turnover Calculating Average Net Operating Assets from Consolidated Balance Sheets Zoom Assets 2020 Cash and Cash Equivalents Non Operating $283.134 Marketable Securities Non Operating $572,060 Accounts Receivable Operating $120,435 Prepaid Expenses Operating $75,008 Property. Plant, Equipment Operating $57.138 Other Assets Operating $75.9531 Total Operating Assets $328 534 $112. $63,613 $10,252 $37 275 $29.932 $133.472 Zoom Liabilities Accounts Payable Accrued Expenses Other Liabilities Total Operating Liabilities Operating Operating Operating 2020 $1,596 $129,692 $36,286 $160.574 2021 $4.963 $32,256 $39,460 $76,679 NOA Average NOA $167.960 $56.793 $112.376.50 I Display Settings Focus ZOOM REPORTED 2020 Horizon Period 2022 2023 2021 Terminal Per 2025 2024 5.8 $ Sales(Unrounded) $ 622,658.00 $ 647.564.32 $ 673,466.89 $ 700,405-57 $ 728,421.79 $ Forecasted Sales Growth 750,274 4% 4% 4% Sales(Rounded) $ 622,658 647.564 $ NOPAT 673.467 S 700.406 $ $ 728,422 $ 750,2 25.305 $ 26,317 S 27:370 $ 28,465 $ NOA $ 29,603 $ 30,4 167,960 $ 174.678 S 181,666 $ 188,932 $ 196,489 $ 202.3 Increase in NOA $ 6,718 $ 6,987 $ 7,267 $ FCFF(NOPAT-Increase in NOA) 7.557 $ $ 19,599 $ 20,383 $ 21,198 22,046 $ 24.59 Discount Factor[1/(1+2) 0.92928 0.86356 0.80249 0.74574 PV of Horizon FCFF 18,213 S 17,602 $ 17,011 16,441 Cumulative present value of term $ 69,266.60 3 Present Value of Terminal FCFF $ (148,045) 9 Total Firm Value $ (78,778.74) Less(Plus) NNO $ 855,194 1 52 Firm Equity Value $ 776,415.26 53. Shares Outstanding 233641 54 Stock value per share $3-32 55 ACTUAL PRICE 76.3 66 Close price on Jan 31st 2020) 67 68 69 Valuation of Ford Motor Company via Residual Operating Income(ROPT) Model 70 Reported Horizon Period Terminal Period 71 ZOOM 2020 2022 2023 2024 2025 72 Sales(Unrounded) $ 622,658.00 $ 647,564-32 S. 673.466.89 $ 700,405-57 $ 728,421.79 S 750,274.44 73 Forecasted Growth Rate 74 S 75 Sales (Rounded) 622,658.00 $ 647.564.00 $ 673.467.00 $ 700,406.00 S $728.422.00 750,274.00 $ 76 NOPAT s 26,317.20 S 27.369.89 S 28,464.68 25,305.00 $ 29.603.27 30,491.37 CA ohnson 916 rohalna TT NO 2021 e GRAFO