Reproduce Ideko's balance sheet and statement of cash flows, assuming Ideko's market share will increase by 0.60 percent per year; investment, financing, and depreciation will be adjusted accordingly; and the projected improvements in working capital occur (that is, Ideko's working capital requirements through 2010 will be as shown below. Ideko's income statements through 2010 and balance sheet for 2005 are shown below, respectively. Ideko capital expenditure assumptions are shown below. Assume an income tax rate of 35%. The projected dividend payments for 2006 thru 2010 are shown below.

	2006	2007	2008	2009	2010
Dividends ($ 000)	(10,160)	(3,649)	(4,563)	(6,194)	(8,103)

Construct Ideko's balance sheets 2006 through 2010 below:(Round to the nearest $ 000.)

Balance Sheet ($ 000)	2006
Assets
Cash and Equivalents
Accounts Receivable
Inventories
Total Current Assets
Property, Plant and Equipment
Goodwill
Total Assets
Liabilities and Stockholders' Equity
Accounts Payable
Debt
Total Liabilities
Stockholders' Equity
Starting Stockholders' Equity
Net Income
Dividends
Capital Contributions
Total Stockholders' Equity
Total Liabilities and Equity

Ideko's Working Capital Requirements
Working Capital Days		2005	> 2005
Assets	Based on:	Days	Days
Accounts Receivable	Sales Revenue	90	60
Raw Materials	Raw Materials Costs	45	30
Finished Goods	Raw Materials+Labor Costs	45	45
Minimum Cash Balance	Sales Revenue	30	30
Liabilities
Wages Payable	Direct Labor+Admin Costs	15	15
Other Accounts Payable	Raw Materials+Sales and Marketing	45

Working Capital ($ 000)	2005	2006	2007	2008	2009	2010
Assets
Accounts Receivable	19,120	14,445	16,318	18,383	20,656	23,158
Raw Materials	2,042	1,530	1,715	1,917	2,137	2,377
Finished Goods	4,351	4,966	5,650	6,411	7,259	8,202
Minimum Cash Balance	6,373	7,222	8,159	9,191	10,328	11,579
Total Current Assets	31,886	28,163	31,842	35,902	40,380	45,316
Labilities
Wages Payable	1,340	1,428	1,633	1,817	2,017	2,291
Other Accounts Payable	3,464	4,054	4,724	5,485	6,193	6,915
Total Current Liabilities	4,804	5,482	6,357	7,302	8,210	9,206
Net Working Capital	27,082	22,681	25,485	28,600	32,170	36,110
Increase in Net Working Capital		(4,401)	2,804	3,115	3,570	3,940

Ideko's income statements through 2010 and balance sheet for 2005 are shown here

Income Statement ($ 000)

2005

2006

2007

2008

2009

2010

Sales

77,541

87,871

99,267

111,827

125,659

140,879

Cost of Goods Sold

Raw Materials

(16,560)

(18,619)

(20,869)

(23,324)

(26,003)

(28,925)

Direct Labor Costs

(18,734)

(21,658)

(24,959)

(28,680)

(32,876)

(37,600)

Gross Profit

42,247

47,594

53,439

59,823

66,780

74,354

Sales and Marketing

(11,538)

(14,261)

(17,451)

(21,169)

(24,227)

(27,161)

Administrative

(13,872)

(13,084)

(14,781)

(15,533)

(16,197)

(18,159)

EBITDA

16,837

20,249

21,207

23,121

26,356

29,034

Depreciation

(5,560)

(5,494)

(5,435)

(5,381)

(5,333)

(6,870)

EBIT

11,277

14,755

15,772

17,740

21,023

22,164

Interest Expense (net)

(80)

(6,667)

(6,667)

(6,667)

(6,667)

(6,667)

Pretax Income

11,197

8,088

9,105

11,073

14,356

15,497

Income Tax

(3,919)

(2,831)

(3,187)

(3,876)

(5,025)

(5,424)

Net Income

7,278

5,257

5,918

7,197

9,331

10,073

and here

Estimated 2005 Balance Sheet Data for Ideko Corporation Balance Sheet ($ 000)

Assets

Cash and Equivalents 6,248

Accounts Receivable 19,120

Inventories 6,190

Total Current Assets 31,558

Property, Plant, and Equipment 50,040

Goodwill 72,386

Total Assets 153,984

Liabilities and Stockholders' Equity

Accounts Payable 4,568

Debt 99,500

Total Liabilities104,068

Stockholders' Equity49,916

Total Liabilities and Equity 153,984

Ideko Capital Expenditure Assumptions ($ 000)2005 2006 2007 2008 2009 2010

Opening Book Value 55,600 50,040 49,446 48,9114 8,430 47,997

New Investment 4,900 4,900 4,900 4,900 4,900 20,700

Depreciation (5,560)(5,494)(5,435)(5,381)(5,333)(6,870)

Closing Book Value 50,040 49,446 48,911 48,430 47,997 61,827