FM12 Ch 14 WebA Tool Kit - B C D E F G H 12/21/2006 1 2...

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12/21/2006 Web Extension 14A: Tool Kit for Advanced Issues in Financial Forecasting e are the financial statements from Chapter 14. INCOME STATEMENT (in millions of dollars) 2006 2007 Sales $2,850.0 $3,000.0 Costs except depreciation $2,497.0 $2,616.2 Depreciation $90.0 $100.0 Total operating costs $2,587.0 $2,716.2 EBIT $263.0 $283.8 Less Interest $60.0 $88.0 Earnings before taxes (EBT) $203.0 $195.8 Taxes (40%) $81.2 $78.3 NI before preferred dividends $121.8 $117.5 Preferred dividends $4.0 $4.0 NI available to common $117.8 $113.5 Dividends to common $53.0 $57.5 $64.8 $56.0 Shares of common equity 50 50 Dividends per share $1.06 $1.15 Price per share $26.00 $23.00 BALANCE SHEET (in millions of dollars) 2006 2007 Assets Cash $15.0 $10.0 ST Investments $65.0 $0.0 Accounts receivable $315.0 $375.0 Inventories $415.0 $615.0 Total current assets $810.0 $1,000.0 Net plant and equipment $870.0 $1,000.0 Total assets $1,680.0 $2,000.0 2006 2007 Liabilities and equity Accounts payable $30.0 $60.0 Accruals $130.0 $140.0 Notes payable $60.0 $110.0 Total current liabilities $220.0 $310.0 Long-term bonds $580.0 $754.0 Total liabilities $800.0 $1,064.0 Preferred stock $40.0 $40.0 Common stock $130.0 $130.0 Retained earnings $710.0 $766.0 Total common equity $840.0 $896.0 Total liabilities and equity $1,680.0 $2,000.0 e: You may get a warning from Excel that cannot calculate a formula, because the model in the AUTOMATIC DBACK worksheet intentionally has circular references. If you get this warning, go to the menu bar and click on ls>Options. Then click the tab for Calculation and check the box for Iterations. This will allow Excel to calculate the ulas in the AUTOMATIC FEEDBACK worksheet. Add. to retained earnings ( RE) B C D E F G H I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58
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Preliminary Pro Forma Ratios Actual Historical Industry Forecast 2006 2007 Average Composite 2008 Costs / Sales 87.61% 87.21% 87.41% 87.1% 87.20% round to 2 de 10.34% 10.00% 10.17% 10.2% 10.00% Cash / Sales 0.53% 0.33% 0.43% 1.0% 0.33% Accounts Rec. / Sales 11.05% 12.50% 11.78% 10.0% 12.50% Inventory / Sales 14.56% 20.50% 17.53% 11.1% 20.50% 30.53% 33.33% 31.93% 33.3% 33.33% Accounts Pay. / Sales 1.05% 2.00% 1.53% 1.0% 2.00% Accruals / Sales 4.56% 4.67% 4.61% 2.0% 4.67% Long-term bonds/operating assets 35.91% 37.70% 36.81% 30.9% 37.70% Other Inputs Sales Growth Rate 10% Tax rate 40% Dividend growth rate 8% Interest rate on notes payable and short-term investments 8.5% Interest rate on long-term bonds 10.5% Coupon rate on preferred stock 10% Funds raised as notes payable 25% Funds raised as long-term debt 25% Funds raised as preferred stock 0% Funds raised as new common stock 50% le 14E-1 and 14E-3 MicroDrive, Inc.: Actual and Projected Income Statements (Millions of Dollars) First Pass Second Pass
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This note was uploaded on 06/15/2011 for the course FI515 FI515 taught by Professor Fi515 during the Spring '10 term at Keller Graduate School of Management.

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FM12 Ch 14 WebA Tool Kit - B C D E F G H 12/21/2006 1 2...

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