Scribd
Upload
50 views7 pages

2008 Financial Forecast Analysis

The document contains financial forecasts for a company for the years 2007 and 2008. It includes forecasts for line items like sales, costs, assets, liabilities, equity. It also contains calculations for additional funds required and how that amount could be raised through various financing options like new debt or equity.

Uploaded by

abdulsammad13690
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
50 views7 pages

2008 Financial Forecast Analysis

The document contains financial forecasts for a company for the years 2007 and 2008. It includes forecasts for line items like sales, costs, assets, liabilities, equity. It also contains calculations for additional funds required and how that amount could be raised through various financing options like new debt or equity.

Uploaded by

abdulsammad13690
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Year Forecast Forecast for

2007 Basis Year 2008 Feedback Final


Sales $3,000 10% $3,300 $3,300
Cost except depreciation $2,616 87.20% $2,878 $2,878
Depreciation $100 10% $110 $110
Total Operating Cost $2,716 $2,988 $2,988
EBIT $284 $312 $312
Less Interest $88 $88 4.98 $93
EBT $196 $224 $219
Taxes @40% $78 $90 (1.99) $88
Net Income before Pref dividends $118 $135 $132
Dividends to Pref $4 $4 $4
Net Income avaiable for Common $114 $131 $128
Dividends to Common $58 $63 3 $66
Carried frwd to R/E $56 $68 -6 $62

Shares of common equity 50


Dividends are expected to grow by 8%
Stock Price $23
Forecast for
Forecast for 2008
Year Forecast 2008 (Second
2007 Basis (First Pass) AFN Pass) Feedback
Cash & Cash equivalent 10 0.33% 11 10.89
A/C Rec: 375 12.50% 413 412.50
Inventories 615 20.50% 677 676.50
Total Current Assets 1,000 1,100 1,099.89
Net PP&E 1,000 33.33% 1,100 1,100.00
Total Assets 2,000 2,200 2,199.89
A/c Payables 60 2% 66 66.00
Notes Payable 110 110 27.67 137.67
Accruals 140 4.70% 155.10 155.10
Total current liabilities 310 331 358.77
Long-term bonds 754 754 27.67 781.67
Total debt 1,064 1,085 1,140.44
Preferred stock 40 40 40.00
Common stock 130 130 55 185.34
Retained earnings 766 68 834 834.00 (2)
Total common equity 896 964 1,019.34
Total liabilities and equity 2,000 2,089 2,199.78

The difference is
Additional Funds Required
(AFN) 111 0
Final
10.89 Amount of new capital
412.50 %
676.50 Notes Payable 25%
1,099.89 Long-term bonds 25%
1,100.00 Common Stock 50%
2,199.89
66.00
137.67
155.10
358.77
781.67
1,140.44
40.00
185.34
832.00
1,017.34
2,197.78

2
average net income
ARR =
average book vale

You might also like