Assume today's date is 1/1/2021.

The ARCH Forecast tab contains a projected income statement template for Arch Resourc
Inc (ticker symbol: ARCH), as well as the most recent year's data. Arch Resources is a coal company headquartered in St. Lo
Missouri.

Note a difference in this week's assignment from previous weeks: there are no blue-shaded cells for your answers. This is
because part of this week's material is about formatting the worksheet and creating new rows and columns, so knowing w
to put your answers (and sometimes how to create the cells which will hold those answers) are the skills you are
demonstrating in this assignment. Always use formulas with cell references when possible, except for model inputs. 20 poi
of this week's assignment are for content (row labels, inputting assumptions, creating formulas, insertion of rows/workshe
and postive/negative values are considered content) and 10 points are for formatting (Input Cell Style and percentages are
considered formatting).
Required this week: all formulas/functions should be typed in the first forecasted column (Column D) in such a way that th
can be copied across to the rest of the forecasted years. Note that this may mean carrying down the historical value into a
newly created row. Where appropriate, set formulas that will first check for a hard-coded dollar amount input and if it is n
there will then calculate the forecast number based on assumptions. Follow the same process, setup and content as
demonstrated in this week's online material. The exception is that you do not need to calculate historical values.
"Input" cell style should be used in any cells that either contain or are meant to contain (but are left blank in this exercise)
hard-coded values, consistent with that applied in the online course content: note that this is not the same thing as merely
changing the background color of a cell. "Input" cell style has already been created for you.
Dollar amounts should have one decimal place.
Expenses are to be input/displayed as positive numbers.
Be sure that percentages are displayed with a percent sign (have percentages display two decimal places) rather than in pu
decimal format (for example, ten percent should display as 10.00%, not 0.10).

This assignment is worth a total of 30 points.

(1 point) Create a new worksheet called Assumptions that is a copy of the ARCH Forecast worksheet. Situate it between the
Questions worksheet and the ARCH Forecast worksheet.
In the Assumptions worksheet:
(5 points) Rearrange the spreadsheet so that there are three rows assigned to Revenue assumptions. Populate and format the
as was demonstrated in the Week 6 online material. Fill in the following assumed growth rates for years 2021-2025, respectiv
-7.91%, -3.09%, -1.57%, -1.05%, -0.08%
(5.5 points) Leave an empty row after Revenue. Rearrange the spreadsheet so that there are three rows assigned to Cost of
Revenue assumptions and populate and format them as was demonstrated in the Week 6 online material. Fill in 93.91% as th
percent of revenue assumption for all forecast years.
(1.5 points) Calculate Gross Profit using an appropriate formula. Do not leave a blank row between Revenue and Gross Profit.
Format appropriately.
(5.5 points) Leave an empty row after Gross Profit. Rearrange the spreadsheet so that there are three rows assigned to Sales,
General & Administrative assumptions and format and populate them as was demonstrated in the Week 6 online material. Fo
the percent of revenue assumptions, fill in 5.10% for 2021, 3.90% for 2022 and 3.50% for the remaining years.
(2 points) Leave an empty row after Sales, General & Administrative. In the Depreciation and amortization row, hard-code the
following dollar amounts as assumptions for years 2021-2025, respectively: 140.0, 135.0, 130.0, 130.0, 130.0. Format
appropriately.
(3 points) Leave an empty row after Depreciation and amortization. Do not put spacer rows between the different types of
interest expense. Hard-code the following interest rate assumptions for each forecast year and format appropriately:
Interest: Excess cash (from balancing): 1.70%
Interest: Revolver (from balancing): 3.20%
Interest expense: 4.10%
(2 points) Leave an empty row after Interest Expense. In the Other Operating Expenses row, hard-code the following dollar
amount as the assumption for each year: 25.0. Format appropriately.
(2 points) Delete Income before income taxes and remove the top border. Leave an empty row after Other operating expense
For Provision for income taxes, input the assumed tax rate of 0.00% in each forecast year and format appropriately.
(2 points) Leave an empty row after Provision for income taxes. In the Other income row, hard-code the following dollar amou
as the assumption for each year: 5.4. Format appropriately.
(0.5 point) Delete Net Income and remove all borders and formatting from that row.
 ent template for Arch Resources,
mpany headquartered in St. Louis,

ells for your answers. This is

s and columns, so knowing where
re the skills you are
xcept for model inputs. 20 points
as, insertion of rows/worksheets
Cell Style and percentages are

lumn D) in such a way that they

wn the historical value into a
lar amount input and if it is not
s, setup and content as
te historical values.
are left blank in this exercise)
not the same thing as merely

imal places) rather than in pure

heet. Situate it between the

tions. Populate and format them

for years 2021-2025, respectively:

ree rows assigned to Cost of

e material. Fill in 93.91% as the

een Revenue and Gross Profit.

three rows assigned to Sales,

the Week 6 online material. For
maining years.
mortization row, hard-code the
, 130.0, 130.0. Format
ween the different types of
format appropriately:

d-code the following dollar

after Other operating expenses.
ormat appropriately.
code the following dollar amount
59036
ARCH RESOURCES, INC (ARCH)
PRO FORMA INCOME STATEMENT Historical
USD in millions except per share data. Assumptions: Description 2020 2021 F 2022 F
Revenue Annual growth rate 1,469.4
Growth% -7.91% -3.09%
Revenue 1,469.4 1,353.2 1,311.4

Cost of revenue Percent of revenue 1,379.9

% of Revenue 93.91% 93.91%
Cost of revenue 1,379.9 1270.8 1231.5
Gross profit 89.5 82.4 79.9

Sales, General & Administrative Percent of revenue 82.4

% of Revenue 5.10% 3.90%
Sales, General & Administrative 82.4 69.0 51.1

Depreciation and amortization Dollar amount 141.4 140.0 135.0

Interest: Excess cash (from balancing) Interest rate 1.70% 1.70%

Interest: Revolver (from balancing) Interest rate 3.20% 3.20%
Interest expense Interest rate 12.3 4.10% 4.10%

Other operating expenses Constant dollar amount 203.4

Income before income taxes (350.0)
Provision for income taxes Tax rate -
Other income Constant dollar amount 5.4
Net income from continuing operations Calculated (344.6)
 2023 F 2024 F 2025 F

-1.57% -1.05% -0.08%

1,290.8 1,277.2 1,276.2

93.91% 93.91% 93.91%

1212.2 1199.4 1198.5
78.6 77.8 77.7

3.50% 3.50% 3.50%

45.2 44.7 44.7

130.0 130.0 130.0

1.70% 1.70% 1.70%

3.20% 3.20% 3.20%
4.10% 4.10% 4.10%
59036
ARCH RESOURCES, INC (ARCH)
PRO FORMA INCOME STATEMENT Historical
USD in millions except per share data. Assumptions: Description 2020 2021 F 2022 F
Revenue Annual growth rate 1,469.4
Cost of revenue Percent of revenue 1,379.9
Gross profit 89.5
Sales, General & Administrative Percent of revenue 82.4
Depreciation and amortization Dollar amount 141.4
Interest: Excess cash (from balancing) Interest rate
Interest: Revolver (from balancing) Interest rate
Interest expense Interest rate 12.3
Other operating expenses Constant dollar amount 203.4
Income before income taxes (350.0)
Provision for income taxes Tax rate -
Other income Constant dollar amount 5.4
Net income from continuing operations Calculated (344.6)
2023 F 2024 F 2025 F
59036