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Sources of Cash Net income Depreciation Decrease in assets or increases in liabilities Increase in AP Total sources of cash \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Uses of Cash Dividends Increases in assets or decreases in liabilities: Increase in cash Increase in AR Increase in inventory Increase in Fixed Assets Decrease in long-term debt Decrease in short-term debt Total uses of cash \begin{tabular}{|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} External funding required 5 points Income Statements \begin{tabular}{|c|c|c|c|c|} \hline & 2018 & 2019 & 2020 & 2021 \\ \hline Net sales & $10,000 & $11,300 & $12,995 & $15,204 \\ \hline Cost of goods sold & 7,200 & 8,927 & 10,396 & 11,859 \\ \hline Gross profit & 2,800 & 2,373 & 2,599 & 3,345 \\ \hline Selling, general, and administrative expenses & 1,200 & 1,243 & 1,300 & 1,672 \\ \hline Operating profit & 1,600 & 1,130 & 1,300 & 1,672 \\ \hline Interest income (expense) & 77 & 72 & 68 & 64 \\ \hline Earnings before tax & 1,523 & 1,058 & 1,232 & 1,608 \\ \hline Tax & 381 & 265 & 308 & 402 \\ \hline Net income & 1,142 & 794 & 924 & 1,206 \\ \hline Dividends & 286 & 198 & 231 & 302 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ Balance Sheets } & \multirow[b]{2}{*}{2021} & \\ \hline & 2019 & 2020 & & 2022 \\ \hline \multicolumn{5}{|l|}{ Assets } \\ \hline \multicolumn{5}{|l|}{ Current assets: } \\ \hline \begin{tabular}{l} Cash and securities \\ Accounts receivable \end{tabular} & 1,562 & 1,858 & 2,207 & 2,541 \\ \hline \begin{tabular}{l} Inventories \\ In \end{tabular} & 900 & 1,116 & 1,300 & 1,977 \\ \hline Prepaid expenses & 14 & 12. & 15 & 18 \\ \hline Total current assets & 3,078 & 3,450 & 4,056 & 5,035 \\ \hline Net fixed assets & 128 & 205 & 325 & 435 \\ \hline Total assets & 3,206 & 3,655 & 4,381 & 5,470 \\ \hline \multicolumn{5}{|l|}{ Liabilities and Owners' Equity } \\ \hline \multicolumn{5}{|l|}{ Current liabilities: } \\ \hline Bank loan & $50 & $50 & $50 & $50 \\ \hline Accounts payable & 1,026 & 929 & 1,025 & 1,235 \\ \hline Current portion long-term debt & 60 & 50 & 50 & 100 \\ \hline Accrued wages & 28 & 37 & 25 & 50 \\ \hline \begin{tabular}{l} Total current liabilities \\ Long-term det \end{tabular} & 1,164 & 1,066 & 1,150 & 1,435 \\ \hline \begin{tabular}{l} Long-term debt \\ Common stock \end{tabular} & 850 & 800 & 750 & 650 \\ \hline \begin{tabular}{l} Retained earnings \\ Ret stok \end{tabular} & 150 & 150 & 150 & 150 \\ \hline Total liabilities and owners' equity & 3,2071,043 & 1,638 & 2,331 & 3,236 \\ \hline & 3,207 & 3,655 & 4,381 & 5,470 \\ \hline & (0) & 0 & (0) & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline & & & & & Forecast \\ \hline & 2019 & 2020 & 2021 & 2022 & 2023E \\ \hline Annual growth rate in sales & & 13% & 15% & 17% & 15% \\ \hline & & & Tied to & & \\ \hline Cost of goods sold (\% of sales) & 72 & 79 & 80 & 78 & 79 \\ \hline Selling, general, and administrative expenses & 12 & 11 & 10 & 11 & 12 \\ \hline Cash and securities (days sales in cash) & 22 & 15 & 15 & 12 & 16 \\ \hline Accounts receivable (collection period) & 57 & 60 & 62 & 61 & 60 \\ \hline Inventories (inventory turnover) & 8 & 8 & 8 & 6 & 6 \\ \hline Accounts payable (payables period) & 52 & 38 & 36 & 38 & 35 \\ \hline & & & atios in P & & \\ \hline Tax/earnings before tax (inc SALT) & 25 & 25 & 25 & 25 & 25 \\ \hline Dividends/earnings after tax & 25 & 25 & 25 & 25 & 25 \\ \hline \end{tabular} Sources of Cash Net income Depreciation Decrease in assets or increases in liabilities Increase in AP Total sources of cash \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Uses of Cash Dividends Increases in assets or decreases in liabilities: Increase in cash Increase in AR Increase in inventory Increase in Fixed Assets Decrease in long-term debt Decrease in short-term debt Total uses of cash \begin{tabular}{|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} External funding required 5 points Income Statements \begin{tabular}{|c|c|c|c|c|} \hline & 2018 & 2019 & 2020 & 2021 \\ \hline Net sales & $10,000 & $11,300 & $12,995 & $15,204 \\ \hline Cost of goods sold & 7,200 & 8,927 & 10,396 & 11,859 \\ \hline Gross profit & 2,800 & 2,373 & 2,599 & 3,345 \\ \hline Selling, general, and administrative expenses & 1,200 & 1,243 & 1,300 & 1,672 \\ \hline Operating profit & 1,600 & 1,130 & 1,300 & 1,672 \\ \hline Interest income (expense) & 77 & 72 & 68 & 64 \\ \hline Earnings before tax & 1,523 & 1,058 & 1,232 & 1,608 \\ \hline Tax & 381 & 265 & 308 & 402 \\ \hline Net income & 1,142 & 794 & 924 & 1,206 \\ \hline Dividends & 286 & 198 & 231 & 302 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ Balance Sheets } & \multirow[b]{2}{*}{2021} & \\ \hline & 2019 & 2020 & & 2022 \\ \hline \multicolumn{5}{|l|}{ Assets } \\ \hline \multicolumn{5}{|l|}{ Current assets: } \\ \hline \begin{tabular}{l} Cash and securities \\ Accounts receivable \end{tabular} & 1,562 & 1,858 & 2,207 & 2,541 \\ \hline \begin{tabular}{l} Inventories \\ In \end{tabular} & 900 & 1,116 & 1,300 & 1,977 \\ \hline Prepaid expenses & 14 & 12. & 15 & 18 \\ \hline Total current assets & 3,078 & 3,450 & 4,056 & 5,035 \\ \hline Net fixed assets & 128 & 205 & 325 & 435 \\ \hline Total assets & 3,206 & 3,655 & 4,381 & 5,470 \\ \hline \multicolumn{5}{|l|}{ Liabilities and Owners' Equity } \\ \hline \multicolumn{5}{|l|}{ Current liabilities: } \\ \hline Bank loan & $50 & $50 & $50 & $50 \\ \hline Accounts payable & 1,026 & 929 & 1,025 & 1,235 \\ \hline Current portion long-term debt & 60 & 50 & 50 & 100 \\ \hline Accrued wages & 28 & 37 & 25 & 50 \\ \hline \begin{tabular}{l} Total current liabilities \\ Long-term det \end{tabular} & 1,164 & 1,066 & 1,150 & 1,435 \\ \hline \begin{tabular}{l} Long-term debt \\ Common stock \end{tabular} & 850 & 800 & 750 & 650 \\ \hline \begin{tabular}{l} Retained earnings \\ Ret stok \end{tabular} & 150 & 150 & 150 & 150 \\ \hline Total liabilities and owners' equity & 3,2071,043 & 1,638 & 2,331 & 3,236 \\ \hline & 3,207 & 3,655 & 4,381 & 5,470 \\ \hline & (0) & 0 & (0) & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline & & & & & Forecast \\ \hline & 2019 & 2020 & 2021 & 2022 & 2023E \\ \hline Annual growth rate in sales & & 13% & 15% & 17% & 15% \\ \hline & & & Tied to & & \\ \hline Cost of goods sold (\% of sales) & 72 & 79 & 80 & 78 & 79 \\ \hline Selling, general, and administrative expenses & 12 & 11 & 10 & 11 & 12 \\ \hline Cash and securities (days sales in cash) & 22 & 15 & 15 & 12 & 16 \\ \hline Accounts receivable (collection period) & 57 & 60 & 62 & 61 & 60 \\ \hline Inventories (inventory turnover) & 8 & 8 & 8 & 6 & 6 \\ \hline Accounts payable (payables period) & 52 & 38 & 36 & 38 & 35 \\ \hline & & & atios in P & & \\ \hline Tax/earnings before tax (inc SALT) & 25 & 25 & 25 & 25 & 25 \\ \hline Dividends/earnings after tax & 25 & 25 & 25 & 25 & 25 \\ \hline \end{tabular}

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