Income statement Prior year Current year Revenues 782.6 900.0 Cost of sales Selling costs Depreciation (27.0) (31.3)
Question:
Income statement
Prior year | Current year | |
Revenues | 782.6 | 900.0 |
Cost of sales | ||
Selling costs | ||
Depreciation | (27.0) | (31.3) |
Operating profit | 90.4 | 85.7 |
Interest | ||
Earnings before taxes | 85.4 | 78.2 |
Taxes | (31.1) | |
Net Income | 54.3 | 47.4 |
Balance sheet
Prior year | Current year | |
Working cash | 15.0 | 12.3 |
Accounts receivable | 85.8 | 111.0 |
Inventory | 69.7 | 75.5 |
Current assets | 170.5 | 198.8 |
Property and equipment | 626.1 | 720.0 |
Total assets | 796.6 | 918.8 |
Liabilities and equity | ||
Accounts payable | 33.7 | 44.1 |
Short-term debt | - | 19.4 |
Current liabilities | 33.7 | 63.5 |
Long-term debt | 170.0 | 215.0 |
Shareholders\' equity | 592.9 | 640.3 |
Liabilities and equity | 796.6 | 918.8 |
Exhibit presents the income statement and balance sheet for PartsCo, a $900 million supplier of machinery parts. Next year, the company is expected to grow revenues by 15 percent to $1,035 million. Using the methodology outlined in Exhibit, forecast next year\'s income statement for PartsCo. Assume next year\'s forecast ratios are identical to this year\'s ratios. Forecast depreciation as a percentage of last year\'s property and equipment. Forecast interest as a percentage of last year\'s total debt.
Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel