Actual 5 100 2019 2020 2023 2024 2025 5% 4% Forecast 2022 5% 80% 10% 2021 6% 80% 10% 170 7% 90% 10% 200 76% 90% 10% 80% 10% 9% 80% 10% 10% 10% 9% 9% 5% 5% 105 11% 11% 1. Construct the table of forecast of operation (Figure 9-3) using provided information 2. Project the financial satement for 2020 only (Figure 9-4) using provided information 3. Assume the cost of line of credit is 5%; use two decimal places for millions. 4. Print out the two tables and submit on the due date. INCOME STATEMENTS BALANCE SHEETS 2018 2019 Assets 2018 2019 Inputs Net sales $ 4,500 $ 5,000 Cash 1. Operating Ratios COGS (exclud 3,560 3,800 ST Investments Sales growth rate Depreciation Accounts receivable 480 COGS (excl. depr.) / Sales Other operat 450 500 Inventories 900 Depreciation / Net PP&E EBIT $ 320 $ 500 Total CA $ 1,300 $ 1.600 Other op. exp. / Sales Interest expe 100 120 Net PP&E 1,700 2,000 Cash / Sales Pre-tax cart $ 220 $ 390 Total assets $3,000 $ 3,600 Acc. rec. / Sales Taxes (21%) 46 80 Inventory / Sales Net income $ 174 $ 300 abilities and equity Net PP&E / Sales Accounts payable 190 $ 200 Acc. pay. / Sales Accruals 280 Accruals / Sales Notes payable 130 250 Other Data Total CL 600 $ 750 2. Capital Structure Common divide $48 $50 Long-term bonds 1,000 1,200 % Long-term debt Addition to $250 Total liabilities $ 1,600 $ 1,950 % Short-term debt % Common stock Shares of con 55 55 Common stock 600 3. Costs of Capital Earnings per $2.16 $5.46 Retained earnings 1,050 Rate on LT debt Dividends pe $0.87 $0.91 Total common equity $ 1,400 $ 1,650 Rate on ST debt Price per share $120.00 Total liabs. & equity $ 3,000 $ 3,600 Cost of equity 4. Target Dividend Policy Growth rate of dividends 18% 40% 20% 20% 40% 40% 40% 40% 4% 6% 21% 4% 40% 4% 6% 300 6% 6% 2195 21% 21% 21% 21% 21% Actual Market Weights Target Market Weights 30% 30% 30% 10% 30% 10% 60% 10% 10% 30% 10% 60% 30% 10% 60% 60% Forecast 800 5.0% 5% 5% 5% 5% 5% 4% 4.0% 7.00% 7% 7% 74 2% 2% 2% 2% 2% Actual 5 100 2019 2020 2023 2024 2025 5% 4% Forecast 2022 5% 80% 10% 2021 6% 80% 10% 170 7% 90% 10% 200 76% 90% 10% 80% 10% 9% 80% 10% 10% 10% 9% 9% 5% 5% 105 11% 11% 1. Construct the table of forecast of operation (Figure 9-3) using provided information 2. Project the financial satement for 2020 only (Figure 9-4) using provided information 3. Assume the cost of line of credit is 5%; use two decimal places for millions. 4. Print out the two tables and submit on the due date. INCOME STATEMENTS BALANCE SHEETS 2018 2019 Assets 2018 2019 Inputs Net sales $ 4,500 $ 5,000 Cash 1. Operating Ratios COGS (exclud 3,560 3,800 ST Investments Sales growth rate Depreciation Accounts receivable 480 COGS (excl. depr.) / Sales Other operat 450 500 Inventories 900 Depreciation / Net PP&E EBIT $ 320 $ 500 Total CA $ 1,300 $ 1.600 Other op. exp. / Sales Interest expe 100 120 Net PP&E 1,700 2,000 Cash / Sales Pre-tax cart $ 220 $ 390 Total assets $3,000 $ 3,600 Acc. rec. / Sales Taxes (21%) 46 80 Inventory / Sales Net income $ 174 $ 300 abilities and equity Net PP&E / Sales Accounts payable 190 $ 200 Acc. pay. / Sales Accruals 280 Accruals / Sales Notes payable 130 250 Other Data Total CL 600 $ 750 2. Capital Structure Common divide $48 $50 Long-term bonds 1,000 1,200 % Long-term debt Addition to $250 Total liabilities $ 1,600 $ 1,950 % Short-term debt % Common stock Shares of con 55 55 Common stock 600 3. Costs of Capital Earnings per $2.16 $5.46 Retained earnings 1,050 Rate on LT debt Dividends pe $0.87 $0.91 Total common equity $ 1,400 $ 1,650 Rate on ST debt Price per share $120.00 Total liabs. & equity $ 3,000 $ 3,600 Cost of equity 4. Target Dividend Policy Growth rate of dividends 18% 40% 20% 20% 40% 40% 40% 40% 4% 6% 21% 4% 40% 4% 6% 300 6% 6% 2195 21% 21% 21% 21% 21% Actual Market Weights Target Market Weights 30% 30% 30% 10% 30% 10% 60% 10% 10% 30% 10% 60% 30% 10% 60% 60% Forecast 800 5.0% 5% 5% 5% 5% 5% 4% 4.0% 7.00% 7% 7% 74 2% 2% 2% 2% 2%
