Suppose that in the model of section 5.1 the fixed assets at cost for years 1–5 are 100% of sales (in the current model, it is net fixed assets which are a function of sales). Change the model accordingly. Show the resulting profit and loss statements, balance sheets, and free cash flows for years 1–5. (Assume that in year 0, the fixed assets accounts are as shown in section 5.2. Note that since year 0 is given—it is the current situation of the firm, whereas years 1–5 are the predictions for the future—there is no need for the year 0 ratios to conform to the predicted ratios for years 1–5.)
