90.2K

Verified Solution

Link Copied!

Predicted sales for $2016$

Sales growth rate for $2017-2021$

Gross profit margin $(t)=$ gross profit $\frac{t}{?}$ sales $(t)$

Operating expenses $($b$4$ depreciation$)($OEBD$)\frac{t}{s}$ales$(t)$

Tax rate

Net PP&E $\frac{t}{?}$ sales $(t+1)$

AR&Inv $\frac{t}{?}$ sales $(t+1)$

Accounts payable plus accrued expenses $\frac{t}{?}$ sales $(t+1)$

Short term debt $(t)/$total assets$(t)$

Short term debt borrowing rate

Long term debt $\frac{t}{?}$ total assets $(t)$

Long term debt borrowing rate

Depreciable life of plant and equipment

Depreciation method

Residual values of working capital and net fixed assets$/$book value

Cost of capital

Pro Forma Income Statements

Sales

COGS

Gross Profit

Operating expenses before depreciation

Depreciation expense

Earnings before interest and taxes

Interest expense

Earnings before taxes

Taxes

Net Income

Pro Forma Balance Sheet

Accounts recievable plus inventories

Gross PP&E

Less: accumulated depreciation expense

Net PP&E

Total Assets

Accounts payable plus accrued expenses

Short term notes payable $($STD$)$

Current liabilites $($CL$)$

Long term debt $($LTD$)$

Common Eguity $($CE$)$

Total liabilities plus common equity $($TL $+CE)$

Project Free Cash Flows

Earnings before interest and taxes $($EBIT$)$

Net operating profit after taxes $($NOPAT$)$

plus: depreciaton expense

lecs:ranital ounendituros $($I ADFY$)$

Sheet$1$

Answer & Explanation Solved by verified expert

See Answer