ch 17 - Financial Planning and Forecasting Chapter 17...

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Unformatted text preview: Financial Planning and Forecasting Chapter 17 Forecasting Sales Projecting the Assets and Internally Generated Funds Projecting Outside Funds Needed Deciding How to Raise Funds 17-1 Preliminary Financial Forecast: Balance Sheets (Assets) 2008 2009E Cash and equivalents $ 20 $ 25 Accounts receivable 240 300 Inventories 240 300 Total current assets $ 500 $ 625 Net fixed assets 500 625 Total assets $1,000 $1,250 17-2 Preliminary Financial Forecast: Balance Sheets (Liabilities and Equity) 2008 2009E Accts payable & accrued liab. $ 100 $ 125 Notes payable 100 190 Total current liabilities 200 315 Long-term debt 100 190 Common stock 500 500 Retained earnings 200 245 Total liabilities & equity $1,000 $1,250 17-3 Preliminary Financial Forecast: Income Statements 2008 2009E Sales $2,000.0 $2,500.0 Less: Variable costs 1,200.0 1,500.0 Fixed costs 700.0 875.0 EBIT $ 100.0 $ 125.0 Interest 16.0 16.0 EBT $ 84.0 $ 109.0 Taxes (40%) 33.6 43.6 Net income $ 50.4 $ 65.40 Dividends (30% of NI) $15.12 $19.62 Addition to retained earnings $35.28 $45.78 17-4 Key Financial Ratios 2008 2009E...
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This note was uploaded on 03/25/2012 for the course FINA 2201 taught by Professor J during the Spring '10 term at Northeastern.

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ch 17 - Financial Planning and Forecasting Chapter 17...

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