60.1K

Verified Solution

Link Copied!

I need assistance completing the forecasted statement of cash flows, please.

Following are the income statement and balance sheet of ADP Inc. \begin{tabular}{|c|c|c|} \hline & \begin{tabular}{l} DATA PROCESSING INC. \\ Balance sheet \\ \$ millions \end{tabular} & \begin{tabular}{c} June 30 \\ 2019 \end{tabular} \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline \multicolumn{2}{|l|}{ Cash and cash equivalents } & $974.8 \\ \hline \multicolumn{2}{|l|}{ Accounts receivable, net } & 1,219.7 \\ \hline Other current assets & & 259.8 \\ \hline \multicolumn{2}{|c|}{ Total current assets before funds held for clients } & 2,454.3 \\ \hline \multicolumn{2}{|c|}{ Funds half for clients } & 14,717.1 \\ \hline \multicolumn{2}{|l|}{ Total current assets } & 17,171.4 \\ \hline \multicolumn{2}{|l|}{ Long-term receivables, net } & 11.9 \\ \hline \multicolumn{2}{|c|}{ Property, plant and equipment, net } & 382.1 \\ \hline \multicolumn{2}{|l|}{ Capitalized contract cost, net } & 1,214.3 \\ \hline \multicolumn{2}{|l|}{ Other assets } & 467.2 \\ \hline \multicolumn{2}{|l|}{ Goodwill } & 1,161.5 \\ \hline \multicolumn{2}{|l|}{ Intangible assets, net } & 535.8 \\ \hline \multicolumn{2}{|l|}{ Total assets } & $20,944.2 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline \multicolumn{2}{|l|}{ Accounts payable } & $62.8 \\ \hline \multicolumn{2}{|c|}{ Accrued expenses and other current liabilities } & 879.5 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Accounts payable & $62.8 \\ \hline Accrued expenses and other current liabilities & 879.5 \\ \hline Accrued payroll and payroll-related expenses & 360.6 \\ \hline Dividends payable & 170.1 \\ \hline Short-term deferred revenues & 110.4 \\ \hline Obligations under reverse repurchase agreements & 131.0 \\ \hline Income taxes payable & 27.4 \\ \hline Total current liabilities before client funds obligations & 1,741.8 \\ \hline Client funds obligations & 14,572.3 \\ \hline Total current liabilities & 16,314.1 \\ \hline Long-term debt & 1,001.1 \\ \hline Other liabilities & 399.4 \\ \hline Deferred income taxes & 330.0 \\ \hline Long-term deferred revenues & 199.7 \\ \hline Total liabilities & 18,244.3 \\ \hline Shareholders' equity & \\ \hline Preferred stock, $1.00 par value; Authorized, 0.3 shares; issued, none & \\ \hline Common stock, $0.10 par value; Authorized, 1,000.0 shares; & \\ \hline issued, 319.4 shares; outstanding 217.1 shares & 32.0 \\ \hline Capital in excess of par value & 591.6 \\ \hline \end{tabular} Assume total revenues grow by 13% in 2020 . Ait othet percentages (other than sales growth and provision for income taxes) are based on fistork peircent of totai rowenues - CAPEx for 2020 wili be 1.1 * of total revenve, and depreciation will be $92.2 million - income taxes will be 25W of pretax income and incorne takes payabie wil be 7.7F of 2020 tax exprose inchides this form of compensation in operating expenses each year. - The company wit contimue its stock repurctater. op will repurchase 3375 inilion of treasury stock. - Dividends will be 5694.70 in 2020 and dividends payable will be 26.1 w of andends. Prepare a forecast of FY2020 statement of cash flows. Note: Round your answers to one decimal place (for example, enter 14.6 for 14.55555 ). \begin{tabular}{|l|l|} \hline Accounts payable & 0 \\ \hline Accrued expenses and other current liabilities & 0 \\ \hline Accrued payroll and payroll-related expenses & 0 \\ \hline Short-term deferred revenues & 0 \\ \hline Obligations under reverse repurchase agreements & 0 \\ \hline Income taxes payable & 0 \\ \hline Client funds obligations & 0 \\ \hline Other liabilities & 0 \\ \hline Deferred income taxes & 0 \\ \hline Long-term deferred revenues & 0 \\ \hline Operating cash flow & 0 \\ \hline Capital Expenditures & 0 \\ \hline Additional intangibles acquired & 0 \\ \hline Net cash from investing activities & 0 \\ \hline Dividends & 0 \\ \hline Dividends payable & 0 \\ \hline Stock buy backs & 0 \\ \hline Net cash from financing activities & 0 \\ \hline Net change in cash & 0 \\ \hline Beginning cash & 0 \\ \hline Ending cash & 0 \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer