Following are the income statement and balance sheet of ADP Inc. DATA PROCESSING INC. Statement of Consolidated
Fantastic news! We've Found the answer you've been seeking!
Question:
Following are the income statement and balance sheet of ADP Inc.
DATA PROCESSING INC. | |
---|---|
Statement of Consolidated Earnings | |
For Year Ended June 30, 2019, $ millions | |
Total revenues | $14,175.2 |
Operating expenses | 7,145.9 |
Systems development and programming costs | 636.3 |
Depreciation and amortization | 304.4 |
Total cost of revenues | 8,086.6 |
Selling, general, and administrative expenses | 3,064.2 |
Interest expense | 129.9 |
Total expenses | 11,280.7 |
Other (income) expense, net | (111.1) |
Earnings before income taxes | 3,005.6 |
Provision for income taxes | 712.8 |
Net earnings | $2,292.8 |
DATA PROCESSING INC. | |
---|---|
Balance Sheet | |
$ millions | June 30, 2019 |
Current assets | |
Cash and cash equivalents | $1,949.2 |
Accounts receivable, net | 2,439.3 |
Other current assets | 519.6 |
Total current assets before funds held for clients | 4,908.1 |
Funds half for clients | 29,434.2 |
Total current assets | 34,342.3 |
Long-term receivables, net | 23.8 |
Property, plant and equipment, net | 764.2 |
Capitalized contract cost, net | 2,428.5 |
Other assets | 934.4 |
Goodwill | 2,323.0 |
Intangible assets, net | 1,071.5 |
Total assets | $41,887.7 |
Current liabilities | |
Accounts payable | $125.5 |
Accrued expenses and other current liabilities | 1,759.0 |
Accrued payroll and payroll-related expenses | 721.1 |
Dividends payable | 340.1 |
Short-term deferred revenues | 220.7 |
Obligations under reverse repurchase agreements | 262.0 |
Income taxes payable | 54.8 |
Total current liabilities before client funds obligations | 3,483.2 |
Client funds obligations | 29,144.5 |
Total current liabilities | 32,627.7 |
Long-term debt | 2,002.2 |
Other liabilities | 798.7 |
Deferred income taxes | 659.9 |
Long-term deferred revenues | 399.3 |
Total liabilities | 36,487.8 |
Shareholders' equity | |
Preferred stock, $1.00 par value; Authorized, 0.3 shares; issued , none | |
Common stock, $0.10 par value; Authorized, 1,000.0 shares; | |
issued, 638.7 shares; outstanding 434.2 shares | 63.9 |
Capital in excess of par value | 1,183.2 |
Retained earnings | 17,500.6 |
Treasury stock, at cost: 204.5 shares | (13,090.5) |
Accumulated other comprehensive loss | (257.3) |
Total stockholders' equity | 5,399.9 |
Total liabilities and stockholders' equity | $41,887.7 |
Assume total revenues grow by 13% 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 1.1% of total revenue, and depreciation will be $184.4 million.
- Goodwill, long-term debt, preferred stock, common stock, and Accumulated other comprehensive loss will not change for the year.
- The company will acquire intangibles equal to 2.9% of total revenues and will record amortization expense of $276.1 million.
- Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax 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. DP will repurchase $750 million of treasury stock.
- Dividends will be $1,389.40 in 2020, and dividends payable will be 26.3% of dividends.
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).
AUTOMATIC DATA PROCESSING, INC. | |
---|---|
Forecasted Statement of Cash Flows | |
For Year Ended | |
$ millions | June 2020 |
Net income (loss) | Answer |
Add: Depreciation | Answer |
Add: Amortization | Answer |
Add: Stock based compensation | Answer |
Accounts receivable, net | Answer |
Other current assets | Answer |
Funds held for clients | Answer |
Long-term receivables, net | Answer |
Capitalized Contract Cost, Net | Answer |
Other assets | Answer |
Accounts payable | Answer |
Accrued expenses and other current liabilities | Answer |
Accrued payroll and payroll-related expenses | Answer |
Short-term deferred revenues | Answer |
Obligations under reverse repurchase agreements | Answer |
Income taxes payable | Answer |
Client funds obligations | Answer |
Other liabilities | Answer |
Deferred income taxes | Answer |
Long-term deferred revenues | Answer |
Operating cash flow | Answer |
Capital Expenditures | Answer |
Additional intangibles acquired | Answer |
Net cash from investing activities | Answer |
Dividends | Answer |
Dividends payable | Answer |
Stock buy backs | Answer |
Net cash from financing activities | Answer |
Net change in cash | Answer |
Beginning cash | Answer |
Ending cash | Answer |
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date: