Calculate the free cash flow for Sula Vineyards for 2003-2007 and for projections based on Scenario C using the projected financial statements you prepared in question 12 above. Dont be surprised if some or all cash flows are negative. When looking at Exhibit 13 in the Sula Vineyards Case, assume that the percentages shown for Property, Plant and Equipment (P, P & E) are gross PP&E as a percentage of revenue. Please ignor the comment in the middle of the page that indicates the PP&E percentages are not percentages of revenue (they have to be). The case writer may have been trying to say these are gross PP&E percentages of revenue instead of net PP&E percentages of revenue, but at best, there must a few words omitted. In any case, please disregard the Property Plant and Equipment comment in the middle of Exhibit 13 and assume the data shown is gross PP&E as a percentage of revenue.

Question 12: Evaluate scenario C presented in exhibits 11 16 (Exhibit 13 is provided in excel as a starting point). Create a pro forma income statement and balance sheet for Scenario C for 2008-2012 based on data from case exhibits 5-14. If external financing is needed, use the category Additional Funds Needed (AFN) on the projected balance sheet as your plug figure. If excess funds are generated, created a short-term asset called Short Term Investment in order to balance the balance sheets. What conclusions can you draw from your analysis?

This forum does not allow me to attach case or excel template. It is a generic case so I am hoping someone will have/find access to it.