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Unformatted text preview: Forecast 2002 2002B Assets Cash 15.5 A/R 35.2 Inv 52 Other current assets 14.2 Net fixed assets 12.5 Other assets 2.6 Total assets 260 Liab & Equity A/P 12.1 T/P 8 Accruals 13 Overdrafts -> "PLUG" 18 Other C/L 19.1 Long term liab 69.5 61.2 Other liab .45 SH EQ 119.8 Total Liab & EQ 260 Total Assets =Total Liabilities + OE Dividend stay constant Restructuring is not recurring Dont expect exceptional costs to be recurring Net int exp is not a function of sales but rather of borrowing. Excel Options-> Formulas-> check enable iterative calculations Total Assets= Total Liabilities + OE Overdrafts- increasing sales causes growth in financing gap-> need to borrow funds Long term liability stays fairly constant See sensitivity analysis of overdrafts table Lessons: Because of financing gap, growth creates a need for financing Major methods of forecasting...
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