Pro Forma Project Vitex Solution Spr 08

Pro Forma Project Vitex Solution Spr 08 - Assumptions for...

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Assumptions for the Forecasting Model Income Statement Sales Cost of Sales Depreciation Other Net (Income)/Expenses Interest Income Interest Expense Income Taxes Balance Sheet Assets Cash and Marketable Securities Accounts Receivable Inventories Other Current Assets Property, Plant and Equipment, Gross Accumulated Depreciation Property, Plant and Equipment, Net Other Non-Current Assets Liabilities and Shareholders' Equity Accounts Payable Short-Term Debt Other Current Liabilities Long-Term Debt Deferred Income Taxes Other Non-Current Liabilties Paid-In Capital Retained Earnings Other assumptions Dividend payout ratio Interest on short-term debt Interest on long-term debt Number of shares outstanding P/E ratio
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ls Base Case Will grow at 5%, based on input from management 52% of sales, little better than historical average 29% of sales, based on expected worsening 8% of Gross PP&E, based on analysis of depreciation schedules -0.7% of sales, based on historical average Calculate based on average balance and interest rate specified later For STD calculate based on average balance and interest rate For LTD interest expense will remain unchanged at $13.5 million 35% of pre-tax income 2.1%, of sales based on historical average 8.4% of sales, based on historical average 8.8% of sales, based on historical average 7.6% of sales, based on historical average Will grow at 11% per year, based on discussion with management Calculated from other items Calculated from other items Will grow at 10% per year, based on discussion with management 6.1% of sales, same as historical average Use to balance the balance sheet (plug) 8.3% of sales, same as 2002 Will remain unchanged 1.4% of sales, based on historical average 7.6% of sales, based on historical average Will remain unchanged Calculated from other items 40%, based on discussion with management 7%, based on economic forecast Rates embedded in existing debt, annual expense $13.5 million 6%, based on economic forecast Will remain unchanged Will decline to 16 in 2003 and then improve to 18, 20, and 22 in the following years
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Model 2: Improving Financial Performance Will grow at 5%, based on input from management 50% of sales, specified by management 29% of sales, based on expected worsening 8% of Gross PP&E, based on analysis of depreciation schedules -0.7% of sales, based on historical average Calculate based on average balance and interest rate specified later For STD calculate based on average balance and interest rate For LTD interest expense will remain unchanged at $13.5 million 35% of pre-tax income Minimum $20 million, but is Plug 8.4% of sales, based on historical average 8.8% of sales, based on historical average 7.6% of sales, based on historical average Will grow at 8% per year, specified by management Calculated from other items Calculated from other items Will grow at 8% per year, specified by management 6.1% of sales, same as historical average
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Pro Forma Project Vitex Solution Spr 08 - Assumptions for...

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