This is all one problem, can you include the ratios you use to get the answers correctly. Thank you

fx Assumptions and Ratios B C D E F G H J K L M N o Ed's Equipment Assumptions and Ratios Forecast Change % 2019 Actual 2020 Forecast 2021 Forecast $ $ $ 295 245 PART 1 - RATIOS AND FORECASTING Calculate all of the blue-shaded cells: 1. Calculate 2019 assumptions and ratios for Actual Financial Statements 2. Calculate the forecast assumptions and ratios for 2020 and 2021 as follows: - Increase units sold for all products by 5% in each year Increase price of each product by 2% per unit each year - Increase Cost of Goods Sold by 2% per unit each year Keep Days of Accounts Receivable, Inventory, and Accounts Payable the same as 2019 - Increase wages by 2% each year - Increase marketing expense by 10% each year Keep SG&A as the same % of Revenue as 2019 -Current equipment will continue to depreciate at same amount per year Buy additional equipment in 2020 (Jan 1) for $200,000, 10 year life, no salvage - Buy additional equipment in 2021 (Jan 1) for $100,000, 10 year life, no salvage - Increase cash by 10% each year Interest rate of 8% Tax rate of 25.5% - Assume no dividends - Taxes payable = Tax expense Units Sold Lawnmowers Rototillers Snowblowers Price Lawnmowers Rototillers Snowblowers Cost of Goods Sold Lawnmowers 5 Rototillers 5 Snowblowers 7 3 Days of Accounts Receivable 3 Days of Inventory Days of Accounts Payable 315 2. Interest Rate 3 Tax Rate 8.0% 23.7% 8.0% 25.5% 8.0% 25.5% 5 Ed's Equipment 5 Income Statement PART 2 - WACC Calculate the WACC for all 3 years: 1. Use the following assumptions: - Interest rate of 8% - Tax rate of 25.5% - T-bill rate of 2.0% - S&P 500 rate of 12.0% - Levered Beta of 1.15 7 3 2019 Actual 2020 Forecast 2021 Forecast Revenue: Lawnmowers 1 Rototillers 2 Snowblowers 3 Total Revenue Cost of Goods Sold: 5 Lawnmowers $ S $ $ 2,581,250 110,250 1,559,250 4,250,750 $ 1,531,250 Ratios Forecast WACC Capital Budgeting B B C D E F G I 1 $ $ $ $ $ 1,531,250 69,750 891,000 2,492,000 $ 1,758,750 $ 41.4% $ $ - ! $ $ $ $ $ 1,133,694 100,255 133,484 17,455 1,384,888 $ - $ $ 373,862 $ - $ $ A 4 Cost of Goods Sold: 5 Lawnmowers 6 Rototillers 7 Snowblowers 8 Total Cost of Goods Sold 9 Gross Margin o Gross Margin % 1 2 Operating Expenses 3 Wages and Benefits 4 Marketing Expense 5 Other SG&A Expense 6 Depreciation Expense 7 Total Operating Expenses 8 9 Earnings Before Interest and Taxes 0 1 Interest Expense 2 Tax Expense 3 Net Income 4 Net Income % 5 6 Bikes 7 Balance Sheet 8 9 Current Assets 0 Cash 1 Accounts Receivable 2 Inventory 3 Total Current Assets 4 5 Building and Equipment 6 Accumulated Depreciation 7 Tota Fixed Assets 8 9 Total Assets $ $ $ 34,592 80,281 258,989 $ 6.1% $ #DIV/0! #DIV/0! 2019 Actual 2020 Forecast 2021 Forecast $ $ $ $ 387,493 450,783 627,641 1,465,917 $ $ $ $ $ 427,313 (109,243) 318,070 $ $ $ $ 1.783.987 $ A B D E F F G H $ 318,070 $ $ 7 Tota Fixed Assets 3 Total Assets $ 1,783,987 $ $ $ $ $ 335,950 80,281 416,231 $ $ 1 Current Liabilities 2 Accounts Payable 3 Taxes Payable 4 Total Current Liabilities 5 5 Long-term Debt 7 Total Liabilities 3 Stock Retained Earnings 1 Total Equity 2 3 Total Liabilities and Equity $ $ 494,177 910,408 $ $ 400,000 $ 400,000 $ $ $ 400,000 $ 473,579 873,579 $ 400,000 $ 400,000 $ 1,783,987 $ 400,000 $ 400,000 2019 Actual 2020 Forecast 2021 Forecast 5 5 More ratios - measure health: 7 Gross Margin % 3 Working Capital Current Ratio Return on Equity 7 Return on Assets 2 Debt/Equity 3 4 5 5 7 3 B F G H I M N o Q R 1 Q S D 2 E 3 0 4 5 TOTAL FREE CASH FLOWS Investment (Deposit) Earnings Terminal Value Total Free Cash Flows ####### ####### $ 350,000 $ 650,000 PART 3 - Capital Budgeting - Calculate the IRR an NPV with the given Free Cash Flows and WACC ######### ####### 15.0% WACC IRR NPV fx Assumptions and Ratios B C D E F G H J K L M N o Ed's Equipment Assumptions and Ratios Forecast Change % 2019 Actual 2020 Forecast 2021 Forecast $ $ $ 295 245 PART 1 - RATIOS AND FORECASTING Calculate all of the blue-shaded cells: 1. Calculate 2019 assumptions and ratios for Actual Financial Statements 2. Calculate the forecast assumptions and ratios for 2020 and 2021 as follows: - Increase units sold for all products by 5% in each year Increase price of each product by 2% per unit each year - Increase Cost of Goods Sold by 2% per unit each year Keep Days of Accounts Receivable, Inventory, and Accounts Payable the same as 2019 - Increase wages by 2% each year - Increase marketing expense by 10% each year Keep SG&A as the same % of Revenue as 2019 -Current equipment will continue to depreciate at same amount per year Buy additional equipment in 2020 (Jan 1) for $200,000, 10 year life, no salvage - Buy additional equipment in 2021 (Jan 1) for $100,000, 10 year life, no salvage - Increase cash by 10% each year Interest rate of 8% Tax rate of 25.5% - Assume no dividends - Taxes payable = Tax expense Units Sold Lawnmowers Rototillers Snowblowers Price Lawnmowers Rototillers Snowblowers Cost of Goods Sold Lawnmowers 5 Rototillers 5 Snowblowers 7 3 Days of Accounts Receivable 3 Days of Inventory Days of Accounts Payable 315 2. Interest Rate 3 Tax Rate 8.0% 23.7% 8.0% 25.5% 8.0% 25.5% 5 Ed's Equipment 5 Income Statement PART 2 - WACC Calculate the WACC for all 3 years: 1. Use the following assumptions: - Interest rate of 8% - Tax rate of 25.5% - T-bill rate of 2.0% - S&P 500 rate of 12.0% - Levered Beta of 1.15 7 3 2019 Actual 2020 Forecast 2021 Forecast Revenue: Lawnmowers 1 Rototillers 2 Snowblowers 3 Total Revenue Cost of Goods Sold: 5 Lawnmowers $ S $ $ 2,581,250 110,250 1,559,250 4,250,750 $ 1,531,250 Ratios Forecast WACC Capital Budgeting B B C D E F G I 1 $ $ $ $ $ 1,531,250 69,750 891,000 2,492,000 $ 1,758,750 $ 41.4% $ $ - ! $ $ $ $ $ 1,133,694 100,255 133,484 17,455 1,384,888 $ - $ $ 373,862 $ - $ $ A 4 Cost of Goods Sold: 5 Lawnmowers 6 Rototillers 7 Snowblowers 8 Total Cost of Goods Sold 9 Gross Margin o Gross Margin % 1 2 Operating Expenses 3 Wages and Benefits 4 Marketing Expense 5 Other SG&A Expense 6 Depreciation Expense 7 Total Operating Expenses 8 9 Earnings Before Interest and Taxes 0 1 Interest Expense 2 Tax Expense 3 Net Income 4 Net Income % 5 6 Bikes 7 Balance Sheet 8 9 Current Assets 0 Cash 1 Accounts Receivable 2 Inventory 3 Total Current Assets 4 5 Building and Equipment 6 Accumulated Depreciation 7 Tota Fixed Assets 8 9 Total Assets $ $ $ 34,592 80,281 258,989 $ 6.1% $ #DIV/0! #DIV/0! 2019 Actual 2020 Forecast 2021 Forecast $ $ $ $ 387,493 450,783 627,641 1,465,917 $ $ $ $ $ 427,313 (109,243) 318,070 $ $ $ $ 1.783.987 $ A B D E F F G H $ 318,070 $ $ 7 Tota Fixed Assets 3 Total Assets $ 1,783,987 $ $ $ $ $ 335,950 80,281 416,231 $ $ 1 Current Liabilities 2 Accounts Payable 3 Taxes Payable 4 Total Current Liabilities 5 5 Long-term Debt 7 Total Liabilities 3 Stock Retained Earnings 1 Total Equity 2 3 Total Liabilities and Equity $ $ 494,177 910,408 $ $ 400,000 $ 400,000 $ $ $ 400,000 $ 473,579 873,579 $ 400,000 $ 400,000 $ 1,783,987 $ 400,000 $ 400,000 2019 Actual 2020 Forecast 2021 Forecast 5 5 More ratios - measure health: 7 Gross Margin % 3 Working Capital Current Ratio Return on Equity 7 Return on Assets 2 Debt/Equity 3 4 5 5 7 3 B F G H I M N o Q R 1 Q S D 2 E 3 0 4 5 TOTAL FREE CASH FLOWS Investment (Deposit) Earnings Terminal Value Total Free Cash Flows ####### ####### $ 350,000 $ 650,000 PART 3 - Capital Budgeting - Calculate the IRR an NPV with the given Free Cash Flows and WACC ######### ####### 15.0% WACC IRR NPV