Professional Documents
Culture Documents
Part (a)
Year 2020 2021 2022 2023 2024 2025
Income statement
Sales 260000 291200 326144 365281.28 409115.0336 458208.8376
Costs of goods sold (3,600) -189280 -211993.6 -237432.832 -265924.772 -297835.744
Interest payments on debt (8,800) -3060 -3060 -3060 -3060 -3060
Interest earned on cash and marketable securities 2,100 1960.215 2821.83613 4955.3456 7364.3409 10078.46066
Salary Expense (62,000) 29120 32614.4 36528.128 40911.50336 45820.88376
Depreciation (30,000) -17642.95 -22144.4113 -26151.9783 -30782.5836 -36125.9529
Profit before tax 157,700 112297.3 124382.225 140119.943 157623.5224 177086.4847
Taxes (46,000) -39304 -43533.7787 -49041.9802 -55168.2328 -61980.2696
Profit after tax 111,700 72993.22 80848.4461 91077.9631 102455.2896 115106.215
Dividends (86,280) -31387.09 -34764.8318 -39163.5242 -44055.7745 -49495.6725
Retained earnings 25,420 41606.14 46083.6143 51914.439 58399.51505 65610.54256
Part (b)
Balance sheet
Cash and marketable securities 30000 26006.14 54617.7519 86963.5509 123446.1891 164509.8297
Current assets 32000 40768 45660.16 51139.3792 57276.1047 64149.23727
Fixed assets 62000 66774.14 100277.912 138102.93 180722.2938 228659.0669
At cost 150000 202858.9 240029.279 283010.287 332641.385 389877.6737
Depreciation (60,000) (77,643) (99,787) (125,939) (156,722) (192,848)
Net fixed assets 90000 125216 140241.92 157070.95 175919.4644 197029.8002
Total assets 152000 191990.1 240519.832 295173.88 356641.7583 425688.8671
REQUIRED:
a PREPARE PROJECTED FINANCIAL STATEMENTS FOR 5 YEARS (2021-2025)
b CALCULATE PROJECTED FREE CASH FLOWS FOR 5 YEARS (2021-2025)