What is the furture forecast 2003-2007 for monmouth inc at 7%. I need to forecast...
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What is the furture forecast 2003-2007 for monmouth inc at 7%. I need to forecast 5 years at 7%, so from 2003-2007 using the balance sheets and other data listed
Exhibit 1 Condensed Operating and Stockholder Information, Robertson Tool Company (millions of dollars except per-share data)
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Operations
Sales
$ 48.5
$ 49.1
$ 53.7
$ 54.8
$ 55.3
Cost of Goods
32.6
33.1
35.9
37.2
37.9
Selling, General and
Administrative Costs
10.7
11.1
11.5
11.9
12.3
Depreciation Expense
2.0
2.3
2.4
2.3
2.1
Interest Expense
.4
.7
.8
.8
.8
Income Before Taxes
2.8
1.9
3.1
2.6
2.2
Taxes
1.1
.8
1.2
1.0
.9
Net Income
$1.7
$1.1
$1.9
$1.6
$1.3
Percentage of Sales
Cost of Goods
67%
67%
67%
68%
69%
Sell, Genl, Admin.
22%
23%
21%
22%
22%
Operating Income
6.6%
5.3%
7.3%
6.2%
5.4%
Stockholder Information
Earnings Per Share
$ 2.91
$ 1.88
$ 3.25
$ 2.74
$ 2.23
Dividends Per Share
1.60
1.60
1.60
1.60
1.60
Book Value Per Share
49.40
49.68
51.33
52.47
53.10
Market Price
33-46
35-48
29-41
25-33
23-32
Price/Earnings Ratio
11-16
10-26
9-13
9-12
10-14
Shares Outstanding
584,000
584,000
584,000
584,000
584,000
Exhibit 2 Balance Sheet at December 31, 2002, Robertson Tool Company (millions of dollars)
Assets
Liabilities and Net Worth
Cash
$ 1
Accounts Payable
$ 2
Accounts Receivable
8
Other
2
Inventories
18
Current Liabilities
4
Other
1
Long-term Debt
12
Current Assets
28
Net Plant and Equipment
19
Net Worth
31
Total Assets
$ 47
Total
$ 47
Collection Period (days)
53
Debt as % Capital
28%
Days of Inventory (days)
173
Total Assets/Net Worth
1.52
Sales/Total Assets
1.18
Exhibit 4 ProFormas for Robertson Tool (millions of dollars)
Actual
Forecasts
2002
2003
2004
2005
2006
2007 to Infinity
Sales
$ 55.3
$ 58.6
$ 62.1
$ 65.9
$ 69.8
$ 69.8
Cost of Goods
37.9
39.8
41.6
43.5
45.4
45.4
Gross Profit
17.4
18.8
20.5
22.4
24.4
24.4
Sell & Admin
12.3
12.3
12.4
12.5
13.3
13.3
Depreciation
2.1
2.3
2.5
2.7
2.9
2.9
EBIT
3.0
4.2
5.6
7.2
8.2
8.2
Tax @ 40%
1.2
1.7
2.2
2.9
3.3
3.3
EBIAT
$ 1.8
$ 2.5
$ 3.4
$ 4.3
$ 4.9
$ 4.9
CoGS % Sales
69%
68%
67%
66%
65%
65%
Sell & Admin % Sales
22%
21%
20%
19%
19%
19%
Net Plant & Equip @
Beginning of Year
$ 19.0
$ 20.7
$ 21.7
$ 22.6
$ 23.5
Capital Expenditures
(4.0)
(3.5)
(3.6)
(3.8)
(2.9)
Depreciation Expense
2.3
2.5
2.7
2.9
2.9
Net Plant & Equip @
End of Year
$ 20.7
$ 21.7
$ 22.6
$ 23.5
$ 23.5
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