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Analyze, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statement and balance sheet of ADP Inc.

DATA PROCESSING INC.
Statement of Consolidated Earnings
For Year Ended June 30, 2019, $ millions
Total revenues	$18,427.8
Operating expenses	9,289.7
Systems development and programming costs	827.2
Depreciation and amortization	395.7
Total cost of revenues	10,512.6
Selling, general, and administrative expenses	3,983.5
Interest expense	168.9
Total expenses	14,665.0
Other (income) expense, net	(144.4)
Earnings before income taxes	3,907.2
Provision for income taxes	926.6
Net earnings	$2,980.6

DATA PROCESSING INC.
Balance Sheet
$ millions	June 30, 2019
Current assets
Cash and cash equivalents	$2,533.9
Accounts receivable, net	3,171.1
Other current assets	675.5
Total current assets before funds held for clients	6,380.5
Funds half for clients	38,264.5
Total current assets	44,645.0
Long-term receivables, net	30.9
Property, plant and equipment, net	993.5
Capitalized contract cost, net	3,157.1
Other assets	1,214.7
Goodwill	3,019.9
Intangible assets, net	1,393.0
Total assets	$54,454.1
Current liabilities
Accounts payable	$163.2
Accrued expenses and other current liabilities	2,286.7
Accrued payroll and payroll-related expenses	937.4
Dividends payable	442.1
Short-term deferred revenues	286.9
Obligations under reverse repurchase agreements	340.6
Income taxes payable	71.2
Total current liabilities before client funds obligations	4,528.1
Client funds obligations	37,887.9
Total current liabilities	42,416.0

Assume total revenues grow by 13% in 2020. All other percentages (other than sales growth and provision for income taxes) are based on historic percent of total revenues.

• CAPEX for 2020 will be 1.1% of total revenue, and depreciation will be $239.7 million.
• Goodwill, long-term debt, preferred stock, common stock, and Accumulated other comprehensive loss will not change for the year.
• The company will acquire intangibles equal to 2.9% of total revenues and will record amortization expense of $358.9 million.
• Income taxes will be 25% of pretax income and income taxes payable will be 7.7% of 2020 tax expense.
• The company will award $217.5 million of stock-based compensation, which increases Capital in excess of par value by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year.
• The company will continue its stock repurchases. DP will repurchase $975 million of treasury stock.
• Dividends will be $1,806.20 in 2020, and dividends payable will be 26.3% of dividends.

Prepare a forecast of FY2020 statement of cash flows. Note: Round your answers to one decimal place (for example, enter 14.6 for 14.55555).

Net income (loss)	Answer
Add: Depreciation	Answer
Add: Amortization	Answer
Add: Stock based compensation	Answer
Accounts receivable, net	Answer
Other current assets	Answer
Funds held for clients	Answer
Long-term receivables, net	Answer
Capitalized Contract Cost, Net	Answer
Other assets	Answer
Accounts payable	Answer
Accrued expenses and other current liabilities	Answer
Accrued payroll and payroll-related expenses	Answer
Short-term deferred revenues	Answer
Obligations under reverse repurchase agreements	Answer
Income taxes payable	Answer
Client funds obligations	Answer
Other liabilities	Answer
Deferred income taxes	Answer
Long-term deferred revenues	Answer
Operating cash flow	Answer
Capital Expenditures	Answer
Additional intangibles acquired	Answer
Net cash from investing activities	Answer
Dividends	Answer
Dividends payable	Answer
Stock buy backs	Answer
Net cash from financing activities	Answer
Net change in cash	Answer
Beginning cash	Answer
Ending cash	Answer

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