please fill in the spreadsheet attached. complete the forecast for a fictitious company using the attached spreadsheet template. the following assumptions are in the assumption part of the spreadsheet (grey highlighted cells at the top of the spreadsheet) and then reference those cells when projecting the appropriate income statement, balance sheet, or break-even account. Do NOT hard code numbers into your projections.

2018 2020 Income Statement and Balance Sheet.

Assumptions:

Sales growth rates in each of next 3 years: 20%, 25%, 30%

Gross margin and operating expenses/sales percentage stay at 2017 level

40% tax rate

No dividends

Interest expense fixed at $400 / year

Bank loan and LT debt stay constant

2018 A/R days = year 2017 days, then decrease by 3 days in 2019 &

another 3 days in 2020

2018 Inventory days = year 2017 days then decrease by 3 days in 2019 &

2 days 2020

A/P days stays at year 2017 days

Net fixed assets and accruals keep relationship with sales

Required cash fixed at 1000

Calculate Additional Funds Needed as plug (to get Balance Sheet to

balance!)

Calculate 2017 breakeven revenues and units. Assumptions:

All operating expenses are fixed

Average price per unit is $50

Assumptions (use these to drive projected IS and BS) 02 0.25 03 Sales Growth % of Current Sales Average pricer per item Cost of Goods Sold % of Sales Operating Expense of Forecast Sales Tax Rate % of EBT Dividend Rate of NI Required Cash % of Forecast Sales A/R days Inventory Days Net Fixed Assets % of Forecast Sales Days Payable Accrued Liability % of Forecast Sales Net Sales Cost of Goods Sold Gross Profit Operating exp Interest Taxes (40%) Net Income Actual '>>>>>>>>>>>> 2017 2018 2019 2020 15000 18000 22500 29250 10500 4500 -2500 -400 1600 -640 960 Cash Dividends (0% of NI) Added Retained Earnings 0 960 1000 2000 Balance Sheet Required Cash A/R Inventories Total Current Assets Net Fixed Assets Total Assets 2200 5200 6800 12000 Accounts Payable Bank Loan Accured Liability Total Current Liability Long Term Debt Common Stock Retained Eamings Additional Funds Needed (AFN) Total Liability & Equity BREAKEVEN CALCULATION Fixed Costs Gross margin BREAKEVEN REVENUES Price per unit Cost per unit Contribution per unit 1600 1800 1200 4600 2200 2400 2800 0 12000 RPCAKEVINUNITS