Lecture 9 spr 10 - Spring 2010 NBA 5060 Lectures 9 Pro Forma Financial Statements Forecasting II 1 Pro forma financial statements 2 A structured

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Spring 2010 NBA 5060 1. Pro forma financial statements 2. A structured forecasting approach Step 1: Forecasting Sales Step 2: Forecasting the rest of the income statement Step 3: Forecasting the balance sheet Step 4: Computing the statement of cash flows and free cash flows to equity Step 5: Terminal year assumptions Step 6: Economic reality checks and an iterative process Teaching Assistants email David Pisacich [email protected] Yinuo Tang [email protected] Piyush Tiwari [email protected] Lecture 9 Page 1 of 9
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2008 2009 Forecast as: Also consider: Revenues 1,171.6 1,222.3 Specialty: Licensing 8,771.9 8,180.1 Company - Operated Retail 439.5 372.2 Specialty: Foodservice 10,383.0 9,774.6 Total Revenues Expenses (4,645.3) (4,324.9) (456.0) (453.0) General and Administrative (3,745.1) (3,425.1) Store Operating Expenses (330.1) (264.4) Other Operating Expenses (549.3) (534.7) Depreciation and Amortization (266.9) (332.4) Restructuring Charges (53.4) (39.1) Interest Expense 113.6 121.9 Income from Equity Investee 9.0 36.3 Other (Expense)/income 459.5 559.2 Earnings before Taxes Taxes and Other Expenses (144.0) (168.4) Provision for Income Tax 315.5 390.8 Net Income (Loss) Step 2. Forecast the rest of the income statement Additional considerations: Cost of Goods Sold: SGA: Other operating expenses: Lecture 9 Page 2 of 9
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Balance Sheet 2008 2009 Assumptions Current Assets Cash and Cash Equivalents 269.8 599.8 Available-for-sale Securities 3.0 21.5 Trading Securities 49.5 44.8 Accounts Receivables 329.5 271.0 Inventories 692.8 664.9 Deferred Income Taxes 234.2 286.6 Prepaid Expenses and Other Current Assets 169.2 147.2 Total Current Assets 1,748.0 2,035.8 Non Current Assets Property, Plant and Equipment, Net 2,956.4 2,536.4 Investments in Marketable Debt Securities
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This note was uploaded on 03/16/2010 for the course NBA 5060 taught by Professor Yehuda,nir during the Spring '08 term at Cornell University (Engineering School).

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Lecture 9 spr 10 - Spring 2010 NBA 5060 Lectures 9 Pro Forma Financial Statements Forecasting II 1 Pro forma financial statements 2 A structured

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