Q9 Networks is a leading provider of outsourced data center ...

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Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Forecast the financial statements for Q9 Networks for Year 6. Use the percent of sales method based on Year 5 and the assumptions listed below. Please note the ratios to sales provided in the table which are useful for making the forecast. Forecast the financial statements for Q9. What is the change in the cash account from Year 5 to Year 6?
Sales growth of 20%. The cost of debt is 4%. The Tax rate is 35%. The depreciation rate is 5%. CAPEX is $4,000,000. Cash is the plug account. The following accounts are held constant: Long-term debt and Common Stock. No dividends are paid in Year 6.

Q9 Networks

Income Statement and Balance Sheet

As of December 31, Year 5 ($ 000s)

​	Year 5	Ratios	Year 6
Revenue	$37,829	​	$45,395
COGS	25,840	0.683074	​
SG&A	11,163	​	​
Dep. Exp.	535	​	​
EBIT	291	​	​
Int. Exp.	136	​	​
EBT	155	​	​
Provision for Income Taxes	55	​	​
Net Income	100	​	​
Assets	Year 5	​	Year 6
Cash	71,301	​	​
Other Current Assets	5,046	0.133390	​
Total Current Assets	76,347	​	​
PP&E	36,757	​	​
Total Assets	113,104	​	​
Liabilities & Stockholders' Equity	​	​	​
Total Current Liabilities	7,688	0.203230	​
Long-Term Debt	4,091	​	4,091
Total Liabilities	11,779	​	​
Shareholders' Equity	​	​	​
Common Stock	178,328	​	178,328
Retained Earnings	-77,003	​	​
Total Owners Equity	101,325	​	​
Total Liabilities and Owners Equity	113,104	​

◦ $2.292 million
◦ $1.301 million
◦ -$2.220 million
◦ -$6.702 million
◦ -$7.081 million

[javimendoza7]

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