Question
Projecting NOPAT and NOA Using Parsimonious Forecasting Method Assume the following are 3M's sales, net operating profit after tax (NOPAT), and net operating assets (NOA)
Projecting NOPAT and NOA Using Parsimonious Forecasting Method Assume the following are 3M's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its fiscal year ended 2010 ($millions).
| Sales | $24,422 |
| Net operating profit after tax (NOPAT) | 4,251 |
| Net operating assets (NOA) | 15,430 |
Forecast 3M's sales, NOPAT and NOA for fiscal years 2011 through 2014 using the following assumptions:
| Sales growth per year | 8.7% |
| Net operating profit margin (NOPM) | 15.2% |
| Net operating assets turnover (NOAT), based on NOA at 2010 fiscal year-end | 1.70 |
| ($ millions) | 2010 | 2011 Est. | 2012 Est. | 2013 Est. | 2014 Est. |
|---|---|---|---|---|---|
| Sales (rounded two decimal places) | $24,422.00 | Answer | Answer | Answer | Answer |
| Sales (rounded nearest whole number) | $24,422 | Answer | Answer | Answer | Answer |
| NOPAT (rounded nearest whole number)* | $4,251 | Answer | Answer | Answer | Answer |
| NOA (rounded nearest whole number)* | $15,430 | Answer | Answer | Answer | Answer |
*Use Sales - rounded nearest whole number to calculate NOPAT and NOA.
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
9th Canadian Edition
978-1119786818, 1119786819
