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Based on the actual financial data for 2010 and projections for 2011 for Blue Scholar Learning (BSL), as shown below, what is BSL's projected free
Based on the actual financial data for 2010 and projections for 2011 for Blue Scholar Learning (BSL), as shown below, what is BSL's projected free cash flow (in $ millions) for 2011?
Blue Scholar Learning, Incorporated (BSL) | ||||||
---|---|---|---|---|---|---|
5-year Financial Projection | ||||||
($ millions) | ||||||
Actual 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
Income Statement | ||||||
Net sales | 1,996 | 2,267 | 2,508 | 2,827 | 3,138 | 3,571 |
Cost of sales | 644 | 742 | 830 | 959 | 1,087 | 1,241 |
Gross income | 1,352 | 1,525 | 1,678 | 1,868 | 2,051 | 2,330 |
Depreciation | 492 | 785 | 1,061 | 1,301 | 1,009 | 917 |
Interest expense | 171 | 178 | 191 | 175 | 142 | 110 |
Operating expenses | 212 | 239 | 270 | 306 | 334 | 374 |
Net income before tax | 477 | 323 | 156 | 86 | 566 | 929 |
Provision for taxes | 186 | 126 | 61 | 34 | 221 | 363 |
Net income after tax | 291 | 197 | 95 | 52 | 345 | 566 |
Balance sheet | ||||||
Total current assets | 1,121 | 1,234 | 1,412 | 1,650 | 1,923 | 2,179 |
Gross property and equipment | 4,180 | 5,149 | 6,410 | 7,449 | 8,200 | 9,016 |
Accumulated depreciation | 868 | 1,654 | 2,714 | 4,015 | 5,024 | 5,941 |
Net property and equipment | 3,312 | 3,495 | 3,696 | 3,434 | 3,176 | 3,075 |
Goodwill | 1,069 | 1,069 | 1,069 | 1,069 | 1,069 | 1,069 |
Total assets | 5,502 | 5,798 | 6,177 | 6,153 | 6,168 | 6,323 |
Accounts payable | 104 | 77 | 91 | 110 | 117 | 135 |
Short-term debt | 335 | 482 | 842 | 814 | 585 | 393 |
Current portion long-term debt | 41 | 140 | 165 | 200 | 223 | 267 |
Accrued expenses | 86 | 97 | 120 | 134 | 174 | 168 |
Total current liabilities | 566 | 796 | 1,218 | 1,258 | 1,099 | 963 |
Long-term debt | 1,694 | 1,554 | 1,389 | 1,189 | 966 | 699 |
Deferred taxes | 335 | 334 | 370 | 454 | 505 | 496 |
Shareholders' equity | 2,907 | 3,104 | 3,200 | 3,252 | 3,598 | 4,165 |
Total liabilities and equity | 5,502 | 5,798 | 6,177 | 6,153 | 6,168 | 6,323 |
Step by Step Solution
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