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Need help with filling the remaining blanks on this parsimonious forecast method table. Q: Use the parsimonious forecast method, to forecast sales, NOPAT, and NOA
Need help with filling the remaining blanks on this parsimonious forecast method table.
Q: Use the parsimonious forecast method, to forecast sales, NOPAT, and NOA for through using the following assumptions.
Sales growth
Net operating profit margin NOPM ratios rounded to three decimal places
Net operating asset turnover NOAT yearend ratios rounded to three decimal places
Forecast the terminal period value assuming a terminal period growth and using the NOPM and NOAT assumptions above.
Note: Round your final answers to the nearest whole dollar. GIVEN DATA:
Following are income statements and balance sheets for Nike Inc.
NIKE INC.
Consolidated Income Statements
May May
For Year Ended $ millions
Revenues $ $
Cost of sales
Gross profit
Demand creation expense
Operating overhead expense
Total selling and administrative expense
Interest expense income net
Other income expense, net
Income before income taxes
Income tax expense
Net income $ $
NIKE INC.
Consolidated Balance Sheets
May May
$ millions
Current assets
Cash and equivalents $ $
Shortterm investments
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
Identifiable intangible assets, net
Goodwill
Deferred income taxes and other assets
Total assets $ $
Current liabilities
Current portion of longterm debt $ $
Notes payable
Accounts payable
Accrued liabilities
Income taxes payable
Total current liabilities
Longterm debt
Deferred income taxes and other liabilities
Commitments and contingencies Note
Shareholders' equity
Common stock at stated value:
Class A convertible and shares outstanding
Class B and shares outstanding
Capital in excess of stated value
Accumulated other comprehensive income loss
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity $ $c Use the parsimonious forecast method, as shown in the Analysis Insight box on page to forecast sales, NOPAT, and NOA for through using the following
assumptions.
Forecast the terminal period value assuming a terminal period growth and using the NOPM and NOAT assumptions above.
Note: Round your final answers to the nearest whole dollar.
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