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Please calculate these working capital requirements from 2005 through 2010 The tables and figures are posted in the order in which they appear in the
Please calculate these working capital requirements from 2005 through 2010
The tables and figures are posted in the order in which they appear in the initial question.
Under the assumptions that Ideko's market share will increase by 0.65 percent per year (implying that the investment, financing, and depreciation will be adjusted accordingly) and the following forecasts , calculate Ideko's working capital requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). Ideko's pro-forma income statements for 2005-2010 are shown here_, while its balance sheet for 2005 is shown here (Click on the following icon in order to copy its contents into a spreadsheet.) Ideko's Net Working Capital Forecast \begin{tabular}{lrrrrrr} Income Statement ($000) & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 \\ \hline Sales & 73,085 & 83,457 & 94,938 & 107,635 & 121,663 & 137,148 \end{tabular} Cost of Goods Sold \begin{tabular}{lrrrrrr} Raw Materials & (15,940) & (18,007) & (20,263) & (22,725) & (25,410) & (28,336) \\ Direct Labor Costs & (17,444) & (20,310) & (23,556) & (27,229) & (31,380) & (36,067) \\ \cline { 2 - 7 } Gross Profit & 39,701 & 45,140 & 51,119 & 57,681 & 64,873 & 72,745 \\ Sales and Marketing & (10,875) & (13,629) & (16,880) & (20,698) & (23,943) & (26,991) \\ Administrative & (13,163) & (12,527) & (14,250) & (15,080) & (15,828) & (17,843) \\ EBITDA & 15,663 & 18,984 & 19,989 & 21,903 & 25,102 & 27,911 \\ Depreciation & (5,460) & (5,419) & (5,382) & (5,349) & (5,319) & (6,852) \\ EBIT & 10,203 & 13,565 & 14,607 & 16,554 & 19,783 & 21,059 \\ Interest Expense (net) & (75) & (6,888) & (6,888) & (6,888) & (6,888) & (6,888) \\ Pretax Income & 10,128 & 6,677 & 7,719 & 9,666 & 12,895 & 14,171 \\ Income Tax & (3,545) & (2,337) & (2,702) & (3,383) & (4,513) & (4,960) \\ \hline Net Income & 6,583 & 4,340 & 5,017 & 6,283 & 8,382 & 9,211 \\ \hline \hline \end{tabular} (Click on the following icon in order to copy its contents into a spreadsheet.) Calculate Ideko's working capital requirements through 2010 below: (Round to the nearest $000.) Under the assumptions that Ideko's market share will increase by 0.65 percent per year (implying that the investment, financing, and depreciation will be adjusted accordingly) and the following forecasts , calculate Ideko's working capital requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). Ideko's pro-forma income statements for 2005-2010 are shown here_, while its balance sheet for 2005 is shown here (Click on the following icon in order to copy its contents into a spreadsheet.) Ideko's Net Working Capital Forecast \begin{tabular}{lrrrrrr} Income Statement ($000) & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 \\ \hline Sales & 73,085 & 83,457 & 94,938 & 107,635 & 121,663 & 137,148 \end{tabular} Cost of Goods Sold \begin{tabular}{lrrrrrr} Raw Materials & (15,940) & (18,007) & (20,263) & (22,725) & (25,410) & (28,336) \\ Direct Labor Costs & (17,444) & (20,310) & (23,556) & (27,229) & (31,380) & (36,067) \\ \cline { 2 - 7 } Gross Profit & 39,701 & 45,140 & 51,119 & 57,681 & 64,873 & 72,745 \\ Sales and Marketing & (10,875) & (13,629) & (16,880) & (20,698) & (23,943) & (26,991) \\ Administrative & (13,163) & (12,527) & (14,250) & (15,080) & (15,828) & (17,843) \\ EBITDA & 15,663 & 18,984 & 19,989 & 21,903 & 25,102 & 27,911 \\ Depreciation & (5,460) & (5,419) & (5,382) & (5,349) & (5,319) & (6,852) \\ EBIT & 10,203 & 13,565 & 14,607 & 16,554 & 19,783 & 21,059 \\ Interest Expense (net) & (75) & (6,888) & (6,888) & (6,888) & (6,888) & (6,888) \\ Pretax Income & 10,128 & 6,677 & 7,719 & 9,666 & 12,895 & 14,171 \\ Income Tax & (3,545) & (2,337) & (2,702) & (3,383) & (4,513) & (4,960) \\ \hline Net Income & 6,583 & 4,340 & 5,017 & 6,283 & 8,382 & 9,211 \\ \hline \hline \end{tabular} (Click on the following icon in order to copy its contents into a spreadsheet.) Calculate Ideko's working capital requirements through 2010 below: (Round to the nearest $000.)Step by Step Solution
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