Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
27Activity
0 of .
Results for:
No results containing your search query
P. 1
Pro Forma Statement Template

Pro Forma Statement Template

Ratings:

4.83

(6)
|Views: 11,738|Likes:
Published by polo888

More info:

Published by: polo888 on Dec 30, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as XLS or read online from Scribd
See more
See less

05/09/2014

original

 
sustainable growth(c) Stephen R. Foerster, 12/29/2008spreadsheet to accompany Financial Management: A Prime
Projecting Financial Requirements: Pro Forma Financial StatementsSustainable Growth Example (Chapter 5)
 page 1 of 4
Income Statement Forecasting Assumptions
 
ItemAssumption or CalculationPercentages (Fractions)1Asset Turn. (AT = sales/assets)assumption
3.000
2Fin. Lev. (FL = assets/equity)assumption
2.500
Profit Margin:3Gross Margin (GP/sales)assumption
0.210
4SG&A Expenses (% of sales)assumption
0.150
Dep. Expenses (% of sales):5Dep. % of fixed assetsassumption
0.200
6Fixed assets/total assetsassumption
0.300
7 Dep. % of total assetsitem 5 x item 60.0608 Assets/sales1/ item 10.3339 Dep. % of salesitem 7 x item 80.020Int. Expenses (% of sales):10Int. % of LT debtassumption
0.100
11LT debt/total assetsassumption
0.400
12 Assets/sales1/ item 10.33313 Int. % of salesitem 10 x item 11 x item 120.01314Expenses (% of sales)item 4 + item 9 + item 130.18315Profit margin before taxitem 3 - item 140.02716Tax rateassumption
0.400
17Profit Margin (PM = NI/sales)item 15 x (1 - item 16)0.016
Income Statement and Balance Sheet Connection:
18ROE = AT x FL x PMitem 1 x item 2 x item 170.12019retention ratio (b)assumption
0.600
20sustainable growth = ROE x bitem 18 x item 190.072
Projecting Financial Requirements: Pro Forma Financial StatementsSustainable Growth Example (Chapter 5)
 
sustainable growth(c) Stephen R. Foerster, 12/29/2008spreadsheet to accompany Financial Management: A Prime
 page 2 of 4
Balance Sheet Forecasting Assumptions
Initial assets:assumption% of init. AssetsValues21
 
Total assetsassumption
100
22Cashassumption
0.100
1023Accounts receivableassumption
0.250
2524Inventoryassumption
0.350
35Fixed assetssee above0.30030Initial Liabilites:25Accounts payableassumption
0.200
20Long-term debtsee above0.40040Inital equity:see above0.40040
Pro Forma Performance Ratios
Yr. 0Yr. 1Yr. 2Return on equity0.120.12Profitability:Gross margin0.210.21Operating expense ratio0.170.17Resource management:Age of Inventory57.7857.78Age of Receivables32.6132.61Age of Payables33.0233.02Liquidity and leverage:Current ratio3.503.503.50Acid test1.751.751.75Debt-to-equity1.501.501.50Long-term debt to capital0.500.500.50Interest coverage3.003.00
 
sustainable growth(c) Stephen R. Foerster, 12/29/2008spreadsheet to accompany Financial Management: A Prime
Projecting Financial Requirements: Pro Forma Financial StatementsSustainable Growth Example (Chapter 5)
 page 3 of 4
 
Pro Forma Income Statement
Year 1Year 2fraction of sales $ amount(unless otherwise noted)Sales300.0321.6Cost of Good Sold237.0254.1Gross Profit0.21063.067.5Operating Expenses:Selling, Gen. & Admin.0.15045.048.2Depreciation0.0206.06.4Total Operating Expenses51.054.7Earnings Before Int. & Taxes12.012.9Interest Expenses0.0134.04.3Earnings Before Tax (EBT)8.08.6Taxes0.400of EBT3.23.4Earnings After Tax (EAT)4.85.1Dividends0.400of EAT1.92.1Change in Retained Earnings2.93.1ROE0.1200.120sustainable growth0.070.07
Projecting Financial Requirements: Pro Forma Financial StatementsSustainable Growth Example (Chapter 5)

Activity (27)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Dharamjeet Singh liked this
Charlene Dc liked this
Scott Cooke liked this
babymon2882 liked this
sizweh liked this
Jason Wyse liked this
sungate007 liked this
sungate007 liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->