How to project CY$+1,2,3$ and Terminal year in the picture given the following information: $1.$ The company$$s assets are cash $($$$100,000),$ inventory $($worth $$400,000$ based on cost$),$ and accounts receivable $($$$25,000).$

a$.$Inventory can be sold back to manufacturers for $50\%$ of its cost.

b$.$Accounts receivable can be sold to a collections agency for $40\%$ of its current level.

$2.$ The company$$s liabilities are accounts payable of $$75,000$ and accrued expenses of $$75,000.$

$3.$ The Discounted Cash Flow Analysis spreadsheet shows the most recent three years$$ income statements in simplified form.

$4.$ Assume the company pays a corporate tax rate of $40\%.$

$5.$ For the current year, depreciation and amortization is $$25,000.$ The company is using straight$-$line depreciation. Thus, D&A is expected to be $$25,000$ going forward.

$6.$ The physical depreciation and$/$or amortization of fixed assets is allowed to be booked as an expense, thus lowering the taxable income. Yet, it is not an actual decrease in dollars so it is not a decrease in cash flow. That is why it is added back in to net income on the way to calculating net cash flow. Net cash flow is actual physical dollars coming out of the business during the time period.

$7.$ There is no interest expense.

$8.$ For the current year, capital expenditure $($CAPEX$)$ is $$50,000.$ CAPEX refers to the current expenditure of money by the company to purchase equipment and other assets that will help the company earn more money in the future. It directly affects net cash flow because it is spent in the current year instead of being passed through to the owners $($as NCF$).$

$9.$ Discount Rate $16\mathrm{.}0\%$

Growth Rate $5\mathrm{.}0\%$

Perpetual Growth Rate $3\mathrm{.}5\%$

Using the facts above, complete the valuation for Duke's Sporting Goods Store using the provided template.