Pro-Forma Projections Excolorby Engineered Bikes Historical financial statements for Excelenty Engineered Baes (EEB) are given below Parameters for projecting through 2001 are also listed Given at this information, the CFO beleves that the firm can reduce its debt by EOY 2001. Find out if she is correct by completing the projection analysis that she has started Hirt Solve for Debt Compute and report numbers for cells that look like this To complete your work you also must compute numbers for cells that look like this but you do not need to report these numbers Project Parameters for Projections (Irrespective of History) Annual Sales Growth. 5.00% Divs set at 10% of N CAPX set at 120.00% of Depreciation Average Depreciable ife of Assets 12.00 Years Annual Deprec 8.3333% of BOP netPPE Min safe cash lovel 4.0% of TTM Sales No stock issuance or buyback Financial Statements Historical Projection Rules Projected PPE Roll Forward Eqs Item EOY-1 20X-1 EOY O 2000 Rule Source Project as 20X1 PPE (BOP) Deprec + Capx =PPE (EOP) 80.000 80.000 (6.067) 8.000 81.333 PPE roll forward eq Last year's EOP PPE CFO CFO 8.333% of BOP PPE 81.333 (6.778) % of Deprec 1 Roll fwd equation Solve for this 2 Income Statement Sales COGS YO 2000 90.000 Rule Source CFO 55.000 %Sales Project as 5.00% 61.11% Sales Growth of Sales 20X1 94.500 3 -Cape 8.000 CFO PRE(TOP) 80.000 81.333 Income Statement Sales COGS Deprecat SGA T NI YO 2033 Rule Source 00.000 5.00% 94.500 55.000 PPE Foret Take from above Rd Fet 6.775 10.000 10500 1.000 rest/C 8000 Trate Equation 47.52% 8525 6713 9203 Equity Roll Forward EGY-1 EGY O Ham 20X-1 20X0 Rule Source Project as 2001 5 31.287 Equity Roll Fwd Eq Last yrs Equity 40.000 8713 Income Statement hon above 9203 ON 0.000 CFO/Board of h PIC (PIC for buyback) 0.000 CFO/Board 31.287 40000 Equity Roll Fed Eq 00 See og at left 0.000 40.336 EOY-1 EOYO Balance Sheets 20X-1 20X0 Rule Source Cash 5000 CFO Project as 4.00% 20X1 of Sales 3.780 AR 25.000 %Sales 277 of Sales 26.250 Inventory 35.000 38.89% of Sales 30.750 Total CA 65.000 66.780 PPE (net) Total Assets AP 81.333 PPE Roll Forward Take from PPE Roll Fwd Eq 146.333 02609 149.409 30.000 %Sales % of Sales Other CL 36.333 %Sales 40.37% of Sales Total CL 6 36.150 ? 66.333 Debt 38 000 Total Liabilities 40 000 106.333 CFO Solve for this 7 101.133 Equity 31.287 40.000 Equity Roll Fwd Eq Take from Equity roll fwd eq ? Check A-(LE) 0. 0.000 0.000 Check (E frm BS) - (E frm roll fwd) 0.000 0.000 Question 25 What is quantity 6 Question 26 The "Rule Source" for quanity 3a is O % of Sales O The CFO or the board O An accounting equation O The enterprise value imperative O Industry best practice O Murky Choose the single best answer. D Question 27 1 pts 1 pts 1 pts C D Question27 Question 20 Question 29 Wat heef Question 30 A T G H U D B N M a 1 1pb 10 What is quantity 27 Question 29 What is the absolute value of quantity 5? D Question 30 What is quantity 7? Hint: start with A-L+E. Expand this to A-Debt + all other Liabilities. Solve for Debt. 1 pts 1 pts No new data to save. Last checked at 11:07am Submit Quia