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Should Rodriguez be more of less critical of cash flow forecasts for Persistence than of cash flow forecasts for Sneaker? Why? Sneaker Project Operating Cash

Should Rodriguez be more of less critical of cash flow forecasts for Persistence than of cash flow forecasts for Sneaker? Why?

Sneaker Project

Operating Cash Flow:
Year 2012 2013 2014 2015 2016 2017 2018
Pairs Sold 1,200,000.00 1,600,000.00 1,400,000.00 2,400,000.00 1,800,000.00 900,000.00
Per Unit Sale Amount $190.00 $190.00 $190.00 $190.00 $190.00 $190.00
Sales Revenue $228,000,000.00 $304,000,000.00 $266,000,000.00 $456,000,000.00 $342,000,000.00 $171,000,000.00
Lost Sales $35,000,000.00 $15,000,000.00 $0.00 $0.00 $0.00 $0.00
Net Sales $193,000,000.00 $289,000,000.00 $266,000,000.00 $456,000,000.00 $342,000,000.00 $171,000,000.00
Gross Margin (40% of sales) $91,200,000.00 $121,600,000.00 $106,400,000.00 $182,400,000.00 $136,800,000.00 $68,400,000.00
Gross Margin Lost $14,000,000.00 $6,000,000.00 $0.00 $0.00 $0.00 $0.00
Gross Margin $77,200,000.00 $115,600,000.00 $106,400,000.00 $182,400,000.00 $136,800,000.00 $68,400,000.00

Persistence Project

Operating Cash Flow: 2013 2014 2015
sales $350,000,000 $413,000,000 $495,600,000
# of pairs sold 583,333.33 826,000.00 1,101,333.33
price per pair $ 90.00 $ 90.00 $ 90.00
Income generated from sales per year $ 52,500,000 $ 74,340,000 $ 99,120,000

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