* Please Use Excel For All Solutions and Provide Formulas and With Screenshots *

Thank You

AAA Ltd. Income Statement For the Year Ended December 31st, 2020 2019 Sales 6,375,250.00 5,025,350.00 Cost Of Goods Sold 2,835,450.00 2,105,837.00 Other Expenses 1,100,500.00 1,058,600.00 Depreciation 75,500.00 67,800.00 Earnings Before Interest and Taxes 2,363,800.00 1,793,113.00 Interest Expense 84,350.00 68,925.00 Earnings Before Taxes 2,279,450.00 1,724,188.00 Taxes (30%) 683,835.00 517,256.40 Net Income $ 1,595,615.00 $ 1,206,931.60 AAA Ltd. Balance Sheet As at December 31st, ASSETS 2020 2019 Cash & Equivalent 67,250.00 53,925.00 Short-term investments 225,783.00 192,243.00 Inventories 1,522,500.00 1,407,530.00 Accounts Receivable 303,200.00 221,058.00 Total Current Assets 2,118,733.00 1,874,756.00 Prop, Plant & Equip - Net 2,582,989.00 2,002,958.00 Total Assets $ 4,701,672.00 $3,877,714.00 LIABILITIES & EQUITY Accounts Payable Notes Payable Accruals Short-term Debt Total Current Liabilities Long-Term Debt Total Liabilities Common Share Capital Retained Earnings Total Equity Total Liabilities and Equity 392,952.00 275,929.00 101,982.00 89,203.00 76,205.00 57,292.00 325,029.00 317,416.00 896,168.00 739,840.00 1,054,024.00 873,204.00 1,950,192.00 1,613,044.00 650,000.00 650,000.00 2,101,480.00 1,614,670.00 2,751,480.00 2,264,670.00 $ 4,701,672.00 $3,877,714.00 Answer the following questions. Please note: short-term investments are non-operating current assets; notes payable and short-term debt are non-operating current liabilities. a) What is Operating Cash Flow for 2020? b) What is Free Cash Flow for 2020? c) The stock is traded at $38 per share at the end of 2020 and there are 105,000 shares outstanding. What is MVA during 2020? d) Given the firm's WACC is 12%, what is EVA during 2020? e) Create common size income statement and balance sheet for both 2020 and 2019. f) Create income statement and balance sheet percentage change analysis for 2020. (Use 2019 as the base year) In addition to the AAA Ltd. financial statements in Problem One, you are given more information as follows. Sales are forecast to increase by 25% in 2021. Notes Payable, Short-term Debt, Long-term Debt, and Common Share Capital will not change. Net Plant and Equipment is forecasted to be $2,900,000 next year. Short-term investments are expected to be $240,000. In 2021, the company's dividend payout ratio will be 40%. Cost of goods sold is expected to be 48% of sales. Other expenses will be 30% of sales. Depreciation expense in 2021 is expected to be $85,100. Cash is expected to be 2% of sales, and inventories will be 30% of sales. Accounts receivable will be 6% of sales. Accounts payable will be 5% of sales. Accruals will be 1% of sales. The company is expected to pay 4% per year compounded annually on its short-term debt and 6% per year compounded annually on its long-term debt. The interest expense on the short-term debt in 2021 is calculated as: [interest rate on short-term debt * amount of short-term debt outstanding at the end of 2020]. The interest expense on the long-term debt is calculated as: [interest rate on long- term debt * amount of long-term debt outstanding at the end of 2020]. The company's tax rate is 30% and the interest rate on short term investments is zero. Based on the information provided you are to: a) Complete the pro-forma income statement and balance sheet for 2021. b) Calculate the amount of Additional Funds Needed in 2021. AAA Ltd. Income Statement For the Year Ended December 31st, 2020 2019 Sales 6,375,250.00 5,025,350.00 Cost Of Goods Sold 2,835,450.00 2,105,837.00 Other Expenses 1,100,500.00 1,058,600.00 Depreciation 75,500.00 67,800.00 Earnings Before Interest and Taxes 2,363,800.00 1,793,113.00 Interest Expense 84,350.00 68,925.00 Earnings Before Taxes 2,279,450.00 1,724,188.00 Taxes (30%) 683,835.00 517,256.40 Net Income $ 1,595,615.00 $ 1,206,931.60 AAA Ltd. Balance Sheet As at December 31st, ASSETS 2020 2019 Cash & Equivalent 67,250.00 53,925.00 Short-term investments 225,783.00 192,243.00 Inventories 1,522,500.00 1,407,530.00 Accounts Receivable 303,200.00 221,058.00 Total Current Assets 2,118,733.00 1,874,756.00 Prop, Plant & Equip - Net 2,582,989.00 2,002,958.00 Total Assets $ 4,701,672.00 $3,877,714.00 LIABILITIES & EQUITY Accounts Payable Notes Payable Accruals Short-term Debt Total Current Liabilities Long-Term Debt Total Liabilities Common Share Capital Retained Earnings Total Equity Total Liabilities and Equity 392,952.00 275,929.00 101,982.00 89,203.00 76,205.00 57,292.00 325,029.00 317,416.00 896,168.00 739,840.00 1,054,024.00 873,204.00 1,950,192.00 1,613,044.00 650,000.00 650,000.00 2,101,480.00 1,614,670.00 2,751,480.00 2,264,670.00 $ 4,701,672.00 $3,877,714.00 Answer the following questions. Please note: short-term investments are non-operating current assets; notes payable and short-term debt are non-operating current liabilities. a) What is Operating Cash Flow for 2020? b) What is Free Cash Flow for 2020? c) The stock is traded at $38 per share at the end of 2020 and there are 105,000 shares outstanding. What is MVA during 2020? d) Given the firm's WACC is 12%, what is EVA during 2020? e) Create common size income statement and balance sheet for both 2020 and 2019. f) Create income statement and balance sheet percentage change analysis for 2020. (Use 2019 as the base year) In addition to the AAA Ltd. financial statements in Problem One, you are given more information as follows. Sales are forecast to increase by 25% in 2021. Notes Payable, Short-term Debt, Long-term Debt, and Common Share Capital will not change. Net Plant and Equipment is forecasted to be $2,900,000 next year. Short-term investments are expected to be $240,000. In 2021, the company's dividend payout ratio will be 40%. Cost of goods sold is expected to be 48% of sales. Other expenses will be 30% of sales. Depreciation expense in 2021 is expected to be $85,100. Cash is expected to be 2% of sales, and inventories will be 30% of sales. Accounts receivable will be 6% of sales. Accounts payable will be 5% of sales. Accruals will be 1% of sales. The company is expected to pay 4% per year compounded annually on its short-term debt and 6% per year compounded annually on its long-term debt. The interest expense on the short-term debt in 2021 is calculated as: [interest rate on short-term debt * amount of short-term debt outstanding at the end of 2020]. The interest expense on the long-term debt is calculated as: [interest rate on long- term debt * amount of long-term debt outstanding at the end of 2020]. The company's tax rate is 30% and the interest rate on short term investments is zero. Based on the information provided you are to: a) Complete the pro-forma income statement and balance sheet for 2021. b) Calculate the amount of Additional Funds Needed in 2021