Using the spreadsheet information presented, answer the following questions for R E Supplies a R E SUPPLIES Facts and assumptions ($ thousands) Actual Forecast Forecast Forecast Forecast 2021 2022 2023 2023 Sensitivity Analysis 2023 Scenario Analysis Net sales Growth rate in sales 25 30 5 Cost of goods sold net sales 86 86 84 88 Gen , sell , and admin expense net sales 12 11 Long term debt 760 660 560 Current portion long term debt 100 100 100 Interest rate 10 10 Tax rate 25 25 Dividend earnings after tax 50 50 Current assets net sales 29 29 35 Net fixed assets 280 270 Current liabilities net sales 14 50 14 40 Owners' equity prior year's equity addtion to retained earnings AQUATIC SUPPLIES CO INCOME STATEMENT ($ millions) Actual Forecast 2017 2018 2019 2020 2021 2022 Sales 582 762 652 693 731 017 818 739 916 987 1,027 03 Cost of Goods Sold 240 828 254 55 285 096 319 308 357 625 400 54 Gross Profit 341 934 398 143 445 92 499 431 559 362 626 486 Selling, General, Administrative Exp 257 507 319 82 358 198 401 182 449 324 503 243 Operating Income Before Deprec 84 427 78 323 87 722 98 249 110 038 123 243 Depreciation Amortization 25 221 29 371 32 896 36 843 41 264 46 216 Operating Profit 59 206 48 952 54 826 61 405 68 774 77 027 Interest Expense 16 43 18 636 18 801 18 841 18 733 18 446 Pretax Income 42 776 30 316 36 025 42 564 50 041 58 581 Total Income Taxes 14 971 10 611 12 609 14 897 17 514 20 503 Net Income 27 805 19 705 23 416 27 667 32 527 38 078 BALANCE SHEET ($ millions) ASSETS Cash Equivalents 7 152 13 054 14 62 16 375 18 34 20 541 Account Receivable 70 538 84 85 95 032 106 436 119 208 133 513 Inventories 39 033 32 635 36 551 40 937 45 849 51 351 Prepaid Expenses 9 339 9 339 9 339 9 339 9 339 9 339 Other Current Assets 27 076 39 162 43 861 49 124 55 019 61 622 Total Current Assets 153 138 179 039 199 403 222 211 247 756 276 366 Net Property, Plant, Equipment 81 648 97 904 109 652 122 811 137 548 154 054 Intangible Assets 9 415 9 415 9 415 9 415 9 415 9 415 Other Assets 24 642 32 635 36 551 40 937 45 849 51 351 TOTAL ASSETS 268 843 318 993 355 022 395 374 440 568 491 186 LIABILITIES Accounts Payable 36 951 39 162 43 861 49 124 55 019 61 622 Accrued Expenses 31 206 32 635 36 551 40 937 45 849 51 351 Other Current Liabilities 3 663 3 663 3 663 3 663 3 663 3 663 Total Current Liabilities 71 82 75 459 84 075 93 724 104 532 116 636 Long Term Debt 157 72 186 363 188 01 188 414 187 327 184 462 Accrued Wages 21 418 19 581 21 93 24 562 27 51 30 811 Total Liabilities 250 958 281 403 294 015 306 701 319 368 331 908 EQUITY Common Stock 1 702 1 702 1 702 1 702 1 702 1 702 Capital Surplus 55 513 55 513 55 513 55 513 55 513 55 513 Retained Earnings 118 729 138 434 161 851 189 517 222 044 260 122 no dividends Less Treasury Stock 158 059 158 059 158 059 158 059 158 059 158 059 Total Equity 17 885 37 59 61 007 88 673 121 2 159 278 TOTAL LIABILITIES EQUITY 268 843 318 993 355 022 395 374 440 568 491 186

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Question: Using the spreadsheet information presented, answer the following questions for R&E Supplies a. R&E SUPPLIES Facts and assumptions ($ thousands) Actual Forecast Forecast Forecast Forecast

Using the spreadsheet information presented, answer the following questions for R&E Supplies


a.	R&E SUPPLIES
	Facts and assumptions ($ thousands)
		Actual	Forecast	Forecast	Forecast	Forecast
		2021	2022	2023	2023 Sensitivity Analysis	2023 Scenario Analysis
	Net sales
	Growth rate in sales		25%	30%		-5%
	Cost of goods sold/net sales		86%	86%	84%	88%
	Gen., sell., and admin. expense/net sales		12%	11%
	Long-term debt	760	660	560
	Current portion long-term debt	100	100	100
	Interest rate		10%	10%
	Tax rate		25%	25%
	Dividend/earnings after tax		50%	50%
	Current assets/net sales		29%	29%		35%
	Net fixed assets		280	270
	Current liabilities/net sales		14.50%	14.40%
	Owners' equity		prior year's equity + addtion to retained earnings

AQUATIC SUPPLIES CO.
INCOME STATEMENT ($ millions)
	Actual	Forecast
	2017	2018	2019	2020	2021	2022
Sales	582.762	652.693	731.017	818.739	916.987	1,027.03
Cost of Goods Sold	240.828	254.55	285.096	319.308	357.625	400.54
Gross Profit	341.934	398.143	445.92	499.431	559.362	626.486
Selling, General, & Administrative Exp.	257.507	319.82	358.198	401.182	449.324	503.243
Operating Income Before Deprec.	84.427	78.323	87.722	98.249	110.038	123.243
Depreciation & Amortization	25.221	29.371	32.896	36.843	41.264	46.216
Operating Profit	59.206	48.952	54.826	61.405	68.774	77.027
Interest Expense	16.43	18.636	18.801	18.841	18.733	18.446
Pretax Income	42.776	30.316	36.025	42.564	50.041	58.581
Total Income Taxes	14.971	10.611	12.609	14.897	17.514	20.503
Net Income	27.805	19.705	23.416	27.667	32.527	38.078

BALANCE SHEET ($ millions)
ASSETS
Cash & Equivalents	7.152	13.054	14.62	16.375	18.34	20.541
Account Receivable	70.538	84.85	95.032	106.436	119.208	133.513
Inventories	39.033	32.635	36.551	40.937	45.849	51.351
Prepaid Expenses	9.339	9.339	9.339	9.339	9.339	9.339
Other Current Assets	27.076	39.162	43.861	49.124	55.019	61.622
Total Current Assets	153.138	179.039	199.403	222.211	247.756	276.366
Net Property, Plant, & Equipment	81.648	97.904	109.652	122.811	137.548	154.054
Intangible Assets	9.415	9.415	9.415	9.415	9.415	9.415
Other Assets	24.642	32.635	36.551	40.937	45.849	51.351
TOTAL ASSETS	268.843	318.993	355.022	395.374	440.568	491.186

LIABILITIES
Accounts Payable	36.951	39.162	43.861	49.124	55.019	61.622
Accrued Expenses	31.206	32.635	36.551	40.937	45.849	51.351
Other Current Liabilities	3.663	3.663	3.663	3.663	3.663	3.663
Total Current Liabilities	71.82	75.459	84.075	93.724	104.532	116.636
Long Term Debt	157.72	186.363	188.01	188.414	187.327	184.462
Accrued Wages	21.418	19.581	21.93	24.562	27.51	30.811
Total Liabilities	250.958	281.403	294.015	306.701	319.368	331.908

EQUITY
Common Stock	1.702	1.702	1.702	1.702	1.702	1.702
Capital Surplus	55.513	55.513	55.513	55.513	55.513	55.513
Retained Earnings	118.729	138.434	161.851	189.517	222.044	260.122	no dividends
Less: Treasury Stock	158.059	158.059	158.059	158.059	158.059	158.059
Total Equity	17.885	37.59	61.007	88.673	121.2	159.278

TOTAL LIABILITIES & EQUITY	268.843	318.993	355.022	395.374	440.568	491.186

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