what do you learn from the sources-and-uses statement provided in case exhibit 7? what are the implications for EMI's dividend policy?

this is in regard to the EMI Group PLC case study, if more information is needed i will provide.

342 Part Five Management EXHIBIT 27.7 | EMI Projected Sources-and-Uses Statement Assuming Arm Dividend Is Maintained in GBP: end of year March 31) 2007 2006 2008 Est. 2018 Assumptions 1.7 --- 09 0.6 0.5 62.9 8.9 5.5 63.2 0.0 63.2 632 Revenue growth New equity issued Share repurchases Dividends Financial Statements Revenue Net Income Noncurrent assets Current operating assets Cash Total assets 2,079.9 90.0 1,781.3 (804) 13931 479 1.751.5 (287.0) 511 654.6 333.4 1.499 1.317 52 1.280 (1.151) 721 903 193 1.817 1.150 46 1,348 (726) 8575 1775 476 821.0 191.0 1.488 1.442 52 1.289 (1.295) 1514 52 1299 11330 Debt obligations Other noncurrent liabilities Current liabilities Total equity Sources and Uses Statement Sources Net Income New equity issued Other adjustments to equity Increase in debt obligations Increase in other NC liabilities Increase in current liabilities Total sources 90.0 0.6 42.5 (12.0) (72.6) 52.9 101.4 (287.0) 8.9 (77.6) 167.3 6.7 (68.1) (249.8) (80.4) 0.0 0.0 124.6 0.0 8.9 53.1 263 00 00 522 00 100 885 166.4 (1424) 28 360 (125 02 612 0.0 885 Uses Increase in noncurrent assets (19.9) (210.9) (34.1) Increase in current operating assets 108.0 (248.2) Increase in cash (50.0) 140.6 Share repurchases 0.5 5.5 Dividends 62.9 63.2 63.2 Total uses 101.5 (249.8) The dividend use in 2007 reflects the 8. Op dividend declared in total for the fiscal year 2006, which was paid in the fiscal year 2007. The impact of the board's decision would be in the 2008 fiscal year. 2008 and 2009 forecasts are from ABN AMRO Equity Research and case writer's estimates. Les forecasted net profit of GBP (110) million and GBP 81 million for 2008 and 2009, respectively Bank NV,"EM. A Special Situation," February 16, 2007, Richard Jones and Tamsin Garrity, Lehman Brot Sources of data: Company annual reports and Web Site; Bridie Barrett, Justin Diddams, and Paul Goodet AVT 53.1 wty Research, "EMI Group." February 15, 2007 342 Part Five Management EXHIBIT 27.7 | EMI Projected Sources-and-Uses Statement Assuming Arm Dividend Is Maintained in GBP: end of year March 31) 2007 2006 2008 Est. 2018 Assumptions 1.7 --- 09 0.6 0.5 62.9 8.9 5.5 63.2 0.0 63.2 632 Revenue growth New equity issued Share repurchases Dividends Financial Statements Revenue Net Income Noncurrent assets Current operating assets Cash Total assets 2,079.9 90.0 1,781.3 (804) 13931 479 1.751.5 (287.0) 511 654.6 333.4 1.499 1.317 52 1.280 (1.151) 721 903 193 1.817 1.150 46 1,348 (726) 8575 1775 476 821.0 191.0 1.488 1.442 52 1.289 (1.295) 1514 52 1299 11330 Debt obligations Other noncurrent liabilities Current liabilities Total equity Sources and Uses Statement Sources Net Income New equity issued Other adjustments to equity Increase in debt obligations Increase in other NC liabilities Increase in current liabilities Total sources 90.0 0.6 42.5 (12.0) (72.6) 52.9 101.4 (287.0) 8.9 (77.6) 167.3 6.7 (68.1) (249.8) (80.4) 0.0 0.0 124.6 0.0 8.9 53.1 263 00 00 522 00 100 885 166.4 (1424) 28 360 (125 02 612 0.0 885 Uses Increase in noncurrent assets (19.9) (210.9) (34.1) Increase in current operating assets 108.0 (248.2) Increase in cash (50.0) 140.6 Share repurchases 0.5 5.5 Dividends 62.9 63.2 63.2 Total uses 101.5 (249.8) The dividend use in 2007 reflects the 8. Op dividend declared in total for the fiscal year 2006, which was paid in the fiscal year 2007. The impact of the board's decision would be in the 2008 fiscal year. 2008 and 2009 forecasts are from ABN AMRO Equity Research and case writer's estimates. Les forecasted net profit of GBP (110) million and GBP 81 million for 2008 and 2009, respectively Bank NV,"EM. A Special Situation," February 16, 2007, Richard Jones and Tamsin Garrity, Lehman Brot Sources of data: Company annual reports and Web Site; Bridie Barrett, Justin Diddams, and Paul Goodet AVT 53.1 wty Research, "EMI Group." February 15, 2007