Chapter 16

Chapter 16 - CHAPTER 16 Financial Planning and Forecasting...

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    16-1 CHAPTER 16 Financial Planning and Forecasting Forecasting sales Projecting the assets and internally  generated funds Projecting outside funds needed Deciding how to raise funds
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    16-2 Preliminary financial forecast: Balance sheets (Assets) 2005 Cash and equivalents $    20 Accounts receivable 240 Inventories 240 Total current assets $  500 Net fixed assets 500 Total assets $1,000
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    16-3 Preliminary financial forecast:  Balance sheets (Liabilities and  equity) 2005 Accts payable & accrued liab. $   100 Notes payable 100 Total current liabilities 200 Long-term debt 100 Common stock 500 Retained earnings 200 Total liabilities & equity $1,000
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    16-4 Preliminary financial forecast:  Income statements 2005 Sales $2,000.0 Less: Variable costs 1,200.0         Fixed costs 700.0 EBIT $100.0 Interest 16.0 EBT $84.0 Taxes (40%) 33.6 Net income $50.4 Dividends (30% of NI) $15.12
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    16-5 Key assumptions in preliminary  financial forecast for NWC Operating at full capacity in 2005.
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Chapter 16 - CHAPTER 16 Financial Planning and Forecasting...

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