A. You can find the financial statement information for the year 2019 in the excel file. Forecast 2020 income statement and balance sheet using the following relations ($ millions) and calculate the sensitivity of net income in 2020 to the changes in total revenue growth rate and effective income tax rate Assume total revenues grow by 16% in 2020. All other percentages (other than sales growth and provision for income taxes) are based on historic percent of total revenues. CAPEX for 2020 will be 2% of total revenue, and depreciation will be $150.4 million. The company will acquire intangibles equal to 3.0% of total revenues and will record amortization cxpense of $270 million. Goodwill, Property, preferred stock, common stock, and accumulated other comprehensive loss will not change for the year. Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax expense. Debt maturing in fiscal 2020 and 2021 is $838 million and $700 million, respectively Calculate interest Expense as a percentage of total debts and use the rate to forecast interest expense The company will award $167.3 million of stock-based compensation, which increases Capital in excess of par value by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year. The company will continue its stock repurchases. ADP will repurchase $750 million of treasury stock. Dividends will be $1,389.4 in 2020, and dividends payable will be 26.3% of dividends. B. Forecast the statement of cash flows for the year 2020 C. To adjust financial statements, what items do we first identify and eliminate? Why? A. You can find the financial statement information for the year 2019 in the excel file. Forecast 2020 income statement and balance sheet using the following relations ($ millions) and calculate the sensitivity of net income in 2020 to the changes in total revenue growth rate and effective income tax rate Assume total revenues grow by 16% in 2020. All other percentages (other than sales growth and provision for income taxes) are based on historic percent of total revenues. CAPEX for 2020 will be 2% of total revenue, and depreciation will be $150.4 million. The company will acquire intangibles equal to 3.0% of total revenues and will record amortization cxpense of $270 million. Goodwill, Property, preferred stock, common stock, and accumulated other comprehensive loss will not change for the year. Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax expense. Debt maturing in fiscal 2020 and 2021 is $838 million and $700 million, respectively Calculate interest Expense as a percentage of total debts and use the rate to forecast interest expense The company will award $167.3 million of stock-based compensation, which increases Capital in excess of par value by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year. The company will continue its stock repurchases. ADP will repurchase $750 million of treasury stock. Dividends will be $1,389.4 in 2020, and dividends payable will be 26.3% of dividends. B. Forecast the statement of cash flows for the year 2020 C. To adjust financial statements, what items do we first identify and eliminate? Why