Copy of Bus420_Excel project

Copy of Bus420_Excel project - NOTE: I strongly recommend...

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NOTE: I strongly recommend that you review pages 300-308 before proceeding. Chapter 9. Here are the company's historical sales. Hint: The Trend function is one method to forecast sales for 2010. Year Sales Growth Rate 2004 129,215,000 2005 180,901,000 40.0% 2006 235,252,000 30.0% 2007 294,065,000 25.0% 2008 396,692,000 34.9% 2009 455,150,000 14.7% 2010 515,465,267 13.3% % Increase in Predicted Sales for 2010 over 2009: 2009 Sales 455,150,000 2010 Sales 515,465,267 % increase 13.25% Note: (b) is a new scenario that is different from letter (a) Key Input Data: Used in the forecast Tax rate 40% Dividend growth rate 8% 9% 11% December 31 Income Statements: (in thousands of dollars) Forecasting 2010 2009 basis Forecast Sales $455,150 Growth 20.00% $546,180 $386,878 % of sales 85.00% $464,253 EBITDA $68,273 $81,927 Depreciation and Amortization $7,388 % of fixed assets 11.00% $8,866 EBIT $60,885 $73,061 Net Interest Expense $8,575 Interest rate x beginning of year debt $8,868 EBT $52,310 $64,194 Taxes (40%) $20,924 $25,678 Net Income $31,386 $38,516 Common dividends $12,554 Growth 8.00% $13,558 $18,832 $24,958 Cumberland Industries December 31 Balance Sheets (in thousands of dollars) Forecasting 2010 2010 2009 basis Input % Without AFN AFN With AFN Assets: Cash and cash equivalents $91,450 % of sales 20.092% $109,740 $109,740 Short-term investments $11,400 Previous $11,400 $0 $11,400 Accounts Receivable $103,365 % of sales 22.710% $124,038 $124,038 Inventories $38,444 % of sales 8.446% $46,133 $46,133 Total current assets $244,659 $291,311 $291,311 Fixed assets $67,165 % of sales 14.757% $80,598 $80,598 Total assets $311,824 $371,909 $371,909 Liabilities and equity Accounts payable $30,761 % of sales 6.758% $36,913 $36,913 Accruals $30,477 % of sales 6.696% $36,573 $36,573 Notes payable $16,717 Previous $16,717 $22,879 $39,596 Total current liabilities $77,955 $90,203 $113,082 Long-term debt $76,264 Previous $76,264 $76,264 Total liabilities $154,219 $166,466 $189,346 Common stock $100,000 Previous $100,000 $100,000 Retained Earnings $57,605 $82,563 $82,563 Total common equity $157,605 $182,563 $182,563 Total liabilities and equity $311,824 $349,029 $371,909
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This note was uploaded on 02/07/2012 for the course BUS 420 taught by Professor Poindexter during the Spring '08 term at N.C. State.

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Copy of Bus420_Excel project - NOTE: I strongly recommend...

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