Question: Buckeye Computer, Inc. produces high performance image generators for simulation

$($including PC$-$based visual system products$)$ and visual workstations for high$-$end graphics

applications. Its financial statements are shown in Exhibit $1($excel filed posted on Canvas$).$

You forecast that Buckeye's revenue will grow each year by $15\%.$ Estimate the free cash flows

each year for the next five years $2021-2025.$ Use the following information to make your

projections:

Use the forecasting ratios provided in Exhibit $2$ to project all other items $($i$.$e$.$ apart from

sales$).$ Note that all ratios are measured directly relative to $.$

Inventory$/$Sales$).$

Assume a tax rate of $35\%.$

EXHIBIT $1$

BUCKEYE COMPUTERS, INC.

$($$ millions$)$

EXHIBIT $2$

BUCKEYE COMPUTER, INC.

Projected Ratios for Future Operation

Ratio