Finance and Cash Flow

Sources of Additional Cash$($$$000$s$)$

$1-$Year Bank Loan

$(3\mathrm{.}50\%$ interest$)$

$0$

$5-$Year Bank Loan

$(4\mathrm{.}00\%$ interest$)$

$0$

$10-$Year Bank Loan

$(4\mathrm{.}50\%$ interest$)$

$0$

Stock Issue

$(000$s of shares at $$159\mathrm{.}43)$

Max. share issue in Y$8=5000$k

$0$

Shares of stock outstanding at the beginning of Year $8$

$19,354$

k

Projected Cash Available in Year $8$ Table

Projected Cash Available in Year $8$

Beginning Cash Balance $($carried over from Year $7)$

$

$27,543$

Cash Inflows Receipts from Sales

$729,993$

Bank Loans $1-$Year

$0$

$5-$Year

$0$

$10-$Year

$0$

Stock Issue $(0$ shares @ $$159\mathrm{.}43)$

$0$

Loan to Cover Overdraft $(1-$year loan$)$

$0$

Interest on Year $7$ Cash Balance

$0$

Cash Refund $($awarded by instructor$)$

$0$

Cash Available from All Sources

$

$757,536$

Uses for Excess Cash$($$$000$s$)$ Early Repayment of L$-$T Loans

$($Balance Sheet Note $8)$

Dividend $($$$/$share$)$

Year $7$ dividend was $$1\mathrm{.}00$

$1\mathrm{.}00$

Stock Repurchase

$(000$s of shares at $$159\mathrm{.}43)$

Max. share repurchase in Y$8=726$k

$0$

Shares of stock outstanding at the end of Year $8$

$19,354$

k

Projected Cash Outlays in Year $8$ Table

Projected Cash Outlays in Year $8$

Cash Outlays Payments to Component Suppliers

$

$277,607$

Production and Assembly Expenses

$124,460$

Delivery$/$Marketing$/$Admin Expenses

$132,121$

Capital Outlays New Workstations

$0$

Robotics Upgrade

$0$

Facilities Expansion

$0$

Facilities Improvement

$1,000$

Loan Principal Repayment $1-$Year Loans

$0$

$5-$Year Loans

$0$

$10-$Year Loans

$20,500$

Interest Payments Bank Loans

$10,283$

Y$7$ Overdraft

$0$

Stock Repurchases $(0$ shares @ $$159\mathrm{.}43)$

$0$

Income Tax Payments

$52,130$

Dividend Payments

$19,354$

Charitable Contributions

$1,859$

Cash Fine $($assessed by instructor$)$

$0$

Total Cash Outlays

$

$639,314$

Projected Cash Balance at the End of Year $8($$$000$s$)$

$$+118,222$

Could generate interest income of $$0$k in Year $9.$

Other Important Financial Statistics Table

Other Important Financial Statistics Last Year Year $8($projected$)$

Interest Rate Paid on Overdraft Loans $7\mathrm{.}3\%5\mathrm{.}5\%$

Interest Rate Received on Cash Balances $1\mathrm{.}8\%0\mathrm{.}0\%$

Shareholder Equity $($mandated minimum $=$ $$100$ mil.$)188\mathrm{.}7$ mil. $291\mathrm{.}0$ mil.

Performance on Credit Rating Measures Table

Performance on Credit Rating Measures Last Year Year $8($projected$)$

Debt $/$ Equity Percentage $($D:E$)55$:$4542$:$58$

Interest Coverage Ratio $($operating profit $-$: interest exp.$)12\mathrm{.}9418\mathrm{.}08$

Current Ratio $($current assets $-$: current liabilities$)1\mathrm{.}912\mathrm{.}86$

Projected Y$8$ Performance

Projections Help File

Projected EPS, ROI, Credit Rating & Image Rating for Year $8$

Scoring Measures Year $8$ Investor Expect.

Earnings Per Share $$6\mathrm{.}28$ $$3\mathrm{.}00$

Return On Equity $50\mathrm{.}7\%25\mathrm{.}0\%$

Credit Rating A A$$

Image Rating $7972$

Projected Net Revenues, Net Profit, and Ending Cash for Year $8$

Other Measures Year $8$ Change from Y$7$

Net Revenues $($$$000$s$)738,924+9\mathrm{.}0\%$

Net Profit $($$$000$s$)121,636+29\mathrm{.}5\%$

Ending Cash $($$$000$s$)118,222+90,679$