CW3 - FIN 340, Spring 2010, Prof. Allen CW-03 Name:_ Use...

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y = 1015.1e 0.1092x R² = 0.9406 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 0 1 2 3 4 5 Sales Year Bob Evans Farms Inc FIN 340, Spring 2010, Prof. Allen CW-03 Name:______________________________ Use the chart below to forecast the firm’s sales for year 5 using the exponential regression method. Sales forecast = 1015.1e (.1092)(5) = 1015.1e (.546) =1051.1(1.72633) = 1752.40 In Excel, the equation would be: =1015.1*EXP(0.1092*5)
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Estimated sales growth rate: 10.00% BOB EVANS FARMS INC Forecast Income Statement (millions) 4/30/2006 4/30/2007 Sales 1,584.81 1,743.29 grow at the indicated rate Cost Of Goods 1,044.07 1,148.48 apply % of sales technique Gross Profit 540.74 594.81 121.08 133.19 apply % of sales technique Depreciation Expense 76.06 apply 2006 depr. rate to 2007 Net Prop. and Equip. Other Operating Expenses 258.25 284.08 apply % of sales technique Operating Income 85.35 93.89 Interest Expense 11.64 11.64 naïve forecast (assumes no new debt issued)
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CW3 - FIN 340, Spring 2010, Prof. Allen CW-03 Name:_ Use...

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