AUTOMATIC DATA PROCESSING INC.

Statement of Consolidated Earnings

For Year Ended June $30,2019,$ $ millions

Total revenues $$11,184\mathrm{.}0$

Operating expenses $5,638\mathrm{.}0$

Systems development and programming costs $636\mathrm{.}3$

Depreciation and amortization $304\mathrm{.}4$

Total cost of revenues $6,578\mathrm{.}7$

Selling, general, and administrative expenses $2,418\mathrm{.}0$

Interest expense $102\mathrm{.}0$

Total expenses $9,098\mathrm{.}7$

Other $($income$)$ expense, net $(88\mathrm{.}0)$

Earnings before income taxes $2,173\mathrm{.}3$

Provision for income taxes $712\mathrm{.}8$

Net earnings $$1,460\mathrm{.}5$

AUTOMATIC DATA PROCESSING INC.

Balance Sheet

$ millions June $30,2019$

Current assets

Cash and cash equivalents $$1,538\mathrm{.}0$

Accounts receivable, net $2,439\mathrm{.}3$

Other current assets $519\mathrm{.}6$

Total current assets before funds held for clients $4,496\mathrm{.}9$

Funds held for clients $23,224\mathrm{.}0$

Total current assets $27,720\mathrm{.}9$

Long$-$term receivables, net $23\mathrm{.}8$

Property, plant and equipment, net $603\mathrm{.}0$

Capitalized contract cost, net $2,428\mathrm{.}5$

Other assets $934\mathrm{.}4$

Goodwill $2,323\mathrm{.}0$

Intangible assets, net $1,071\mathrm{.}5$

Total assets $$35,105\mathrm{.}1$

Current liabilities

Accounts payable $$125\mathrm{.}5$

Accrued expenses and other current liabilities $1,388\mathrm{.}0$

Accrued payroll and payroll$-$related expenses $721\mathrm{.}1$

Dividends payable $268\mathrm{.}0$

Short$-$term deferred revenues $220\mathrm{.}7$

Obligations under reverse repurchase agreements $262\mathrm{.}0$

Income taxes payable $54\mathrm{.}8$

Total current liabilities before client funds obligations $3,040\mathrm{.}1$

Client funds obligations $22,995\mathrm{.}0$

Total current liabilities $26,035\mathrm{.}1$

Long$-$term debt $2,002\mathrm{.}2$

Other liabilities $630\mathrm{.}0$

Deferred income taxes $659\mathrm{.}9$

Long$-$term deferred revenues $399\mathrm{.}3$

Total liabilities $29,726\mathrm{.}5$

Shareholders' equity

Preferred stock, $$1\mathrm{.}00$ par value; Authorized, $0\mathrm{.}3$ shares; issued $,$ none

Common stock, $$0\mathrm{.}10$ par value; Authorized, $1,000\mathrm{.}0$ shares;

issued, $638\mathrm{.}7$ shares; outstanding $434\mathrm{.}2$ shares $63\mathrm{.}9$

Capital in excess of par value $1,161\mathrm{.}9$

Retained earnings $17,500\mathrm{.}6$

Treasury stock, at cost: $204\mathrm{.}5$ shares $(13,090\mathrm{.}5)$

Accumulated other comprehensive loss $(257\mathrm{.}3)$

Total stockholders' equity $5,378\mathrm{.}6$

Total liabilities and stockholders' equity $$35,105\mathrm{.}1$

Forecast ADP$$s $2020$ income statement and balance sheet using the following relations $($$ millions$).$

Note: Complete the entire question in Excel $($template provided above$).$ Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with $\_$two decimal places$\_.$

Note: Use negative signs with answers, when appropriate.

Assumptions

Total revenue growth $13\mathrm{.}00\%$ growth

CAPEX as a percentage of total revenue $1\mathrm{.}10\%\%$ of total revenue

Depreciation $$184\mathrm{.}4$ million

Acquired intangibles as a percentage of total revenue $2\mathrm{.}90\%\%$ of total revenue

Amortization $$276\mathrm{.}1$ million

Provision for income taxes $25\mathrm{.}00\%\%$ percentage of earnings before income taxes in $2020$

Taxes payable $7\mathrm{.}70\%\%$ of provision for income taxes in $2020$

Stock$-$based compensation $$167\mathrm{.}3$ 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.

Stock repurchases $$750\mathrm{.}0$ million

Dividends $$1,389\mathrm{.}4$ million

Dividends payable $26\mathrm{.}30\%\%$ of dividends

Goodwill, long$-$term debt, preferred stock, common stock, and Accumulated other comprehensive loss No change in $ amount

All other percentages are based on historic percent of total revenues

AUTOMATIC DATA PROCESSING INC.

Balance Sheet

$ millions June $30,2020$

Current assets

Cash and cash equivalents Answer $13$

$163\mathrm{.}2$

Accounts receivable, net Answer $14$

$2,756\mathrm{.}68$

Other current assets Answer $15$

$587\mathrm{.}64$

Total current assets before funds held for clients Answer $16$

$5,055\mathrm{.}57$

Funds held for clients Answer $17$

$26,243\mathrm{.}12$

Total current assets Answer $18$

$0$

Long$-$term receivables, net Answer $19$

$23\mathrm{.}8$

Property, plant and equipment, net Answer $20$

$621\mathrm{.}4$

Capitalized contract cost, net Answer $21$

$2,744\mathrm{.}21$

Other assets Answer $22$

$1,056\mathrm{.}87$

Goodwill Answer $23$

$2,323$

Intangible assets, net Answer $24$

$1,210\mathrm{.}79$

Total assets Answer $25$

$39,366\mathrm{.}44$

Current liabilities

Accounts payable Answer $26$

$141\mathrm{.}82$

Accrued expenses and other current liabilities Answer $27$

$1,568\mathrm{.}44$

Accrued payroll and payroll$-$related expenses Answer $28$

$814\mathrm{.}84$

Dividends payable Answer $29$

$365\mathrm{.}45$

Short$-$term deferred revenues Answer $30$

$249\mathrm{.}39$

Obligations under reverse repurchase agreements Answer $31$

$296\mathrm{.}06$

Income taxes payable An