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Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Target s sales, net operating profit after tax ( NOPAT ) , and net operating

Projecting NOPAT and NOA Using Parsimonious Forecasting Method
Following are Targets sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its year ended February 2,2019($ millions).
Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.
Financial information
Sales $75,356
Net operating profit after tax (NOPAT)3,264
Net operating assets (NOA)21,016
Use the parsimonious method to forecast Targets sales, NOPAT, and NOA for years ended February 2020 through 2023 using the following assumptions.
Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_.
Note: When completing the question in Excel, refer directly to the cells containing these assumptions, i.e., don't type the NOPM number when making a calculation, refer to the cell.
Note: Use negative signs with answers, when appropriate.
Assumptions
Sales growth per year 3.60%
Net operating profit margin (NOPM)4.33%
Net operating asset turnover (NOAT), based on NOA at February 2,20193.59
$ millions 2019 Actual 2020 Est. 2021 Est. 2022 Est. 2023 Est.
Sales 75,356.00 Answer 1
Answer 2
0
Answer 3
0
Answer 4
0
NOPAT 3,264.00 Answer 5
0
Answer 6
0
Answer 7
0
Answer 8
0
NOA 21,016.00 Answer 9
0
Answer 10
0
Answer 11
0
Answer 12
0a. Does forecasted cash deviate from the normal level for this company?
Calculate the company's normal cash level as a percentage of sales.
Normal cash as a % of sales
Using the answer above, compute what should be the normal cash balance for Fv2020.
Normal eash balance for FY2030
b. Is the deviation in part a large enough to require adjustment? Explain.
Yes. The deviation is large enough to require an adjustment.
c. Identify three wrays to adjust the forecasted cash balance.
Which option would least likely be used to adjust the cash balance?
d. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance.
e. Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance.
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