Using the Percent-of-Sales method, please forecast 2016 using the following assumptions 2016 Cash level increased to 5% of sales 2016 Revenue growth of 25% 2016 Deprecation of $50 2016 Interest rate on short-term debt of 8% 2016 Tax rate of 35% 2016 Receivable days of 25 2016 Inventory days of 500 2016 Capital Expenditure of $60 2016 Purchases are 40% of COGS If the new value is not given above, please match the 2015 ratio (when available). USE CELL REFERENCES. Financial Ratio Analysis and Benchmarking 2012 2013 2014 2015 2016E Revenue growth 2.9% 2.4% 12.5% 15.5% Gross margin (Gross profit / Revenue) 48.9% 46.9% 51.8% 52.0% Receivable days (AR / Revenue * 365) 41.9 45.0 48.0 50.9 Inventory days (Inventory / COGS * 365) 424.2 432.1 436.5 476.3 Payable days (AP / Purchases * 365) 15.6 13.3 10.2 9.9 NFA turnover (Revenue / NFA) 2.4 2.4 2.4 3.0 HORNIMAN HORTICULTURE Projected Horniman Horticulture Financial Summary (in thousands of dollars) 2012 2013 2014 2015 2016E CORRECT VALUE TO MATCH Profit and loss statement Revenue 788.5 807.6 908.2 1048.8 Cost of goods sold 402.9 428.8 437.7 503.4 Gross profit 385.6 378.8 470.5 545.4 SG&A expense 301.2 302.0 356.0 404.5 Interest expense 0.0 0.0 0.0 0.0 Depreciation 34.2 38.4 36.3 40.9 Operating profit 50.2 38.4 78.2 100.0 115.5 Taxes 17.6 13.1 26.2 39.2 Net profit 32.6 25.3 52.0 60.8 Balance sheet Cash 120.1 105.2 66.8 9.4 Accounts receivable 90.6 99.5 119.5 146.4 Inventory1 468.3 507.6 523.4 656.9 Other current assets2 20.9 19.3 22.6 20.9 Current assets 699.9 731.6 732.3 833.6 Net fixed assets3 332.1 332.5 384.3 347.9 Total assets 1032.0 1064.1 1116.6 1181.5 1401.4 Accounts payable 6.0 5.3 4.5 5.0 Short-term debt 0.0 0.0 0.0 0.0 132.4 Wages payable 19.7 22.0 22.1 24.4 Other payables 10.2 15.4 16.6 17.9 Current liabilities 35.9 42.7 43.2 47.3 Net worth (Shareholder Equity) 996.1 1021.4 1073.4 1134.2 Total Liabilities and Shareholder Equity 1032.0 1064.1 1116.6 1181.5 1401.4 Capital expenditure 22.0 38.8 88.1 4.5 Purchases4 140.8 145.2 161.2 185.1
Using the Percent-of-Sales method, please forecast 2016 using the following assumptions 2016 Cash level increased to 5% of sales 2016 Revenue growth of 25% 2016 Deprecation of $50 2016 Interest rate on short-term debt of 8% 2016 Tax rate of 35% 2016 Receivable days of 25 2016 Inventory days of 500 2016 Capital Expenditure of $60 2016 Purchases are 40% of COGS If the new value is not given above, please match the 2015 ratio (when available). USE CELL REFERENCES. Financial Ratio Analysis and Benchmarking 2012 2013 2014 2015 2016E Revenue growth 2.9% 2.4% 12.5% 15.5% Gross margin (Gross profit / Revenue) 48.9% 46.9% 51.8% 52.0% Receivable days (AR / Revenue * 365) 41.9 45.0 48.0 50.9 Inventory days (Inventory / COGS * 365) 424.2 432.1 436.5 476.3 Payable days (AP / Purchases * 365) 15.6 13.3 10.2 9.9 NFA turnover (Revenue / NFA) 2.4 2.4 2.4 3.0 HORNIMAN HORTICULTURE Projected Horniman Horticulture Financial Summary (in thousands of dollars) 2012 2013 2014 2015 2016E CORRECT VALUE TO MATCH Profit and loss statement Revenue 788.5 807.6 908.2 1048.8 Cost of goods sold 402.9 428.8 437.7 503.4 Gross profit 385.6 378.8 470.5 545.4 SG&A expense 301.2 302.0 356.0 404.5 Interest expense 0.0 0.0 0.0 0.0 Depreciation 34.2 38.4 36.3 40.9 Operating profit 50.2 38.4 78.2 100.0 115.5 Taxes 17.6 13.1 26.2 39.2 Net profit 32.6 25.3 52.0 60.8 Balance sheet Cash 120.1 105.2 66.8 9.4 Accounts receivable 90.6 99.5 119.5 146.4 Inventory1 468.3 507.6 523.4 656.9 Other current assets2 20.9 19.3 22.6 20.9 Current assets 699.9 731.6 732.3 833.6 Net fixed assets3 332.1 332.5 384.3 347.9 Total assets 1032.0 1064.1 1116.6 1181.5 1401.4 Accounts payable 6.0 5.3 4.5 5.0 Short-term debt 0.0 0.0 0.0 0.0 132.4 Wages payable 19.7 22.0 22.1 24.4 Other payables 10.2 15.4 16.6 17.9 Current liabilities 35.9 42.7 43.2 47.3 Net worth (Shareholder Equity) 996.1 1021.4 1073.4 1134.2 Total Liabilities and Shareholder Equity 1032.0 1064.1 1116.6 1181.5 1401.4 Capital expenditure 22.0 38.8 88.1 4.5 Purchases4 140.8 145.2 161.2 185.1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Using the Percent-of-Sales method, please |
|
| 2016 Cash level increased to 5% of sales | |
| 2016 Revenue growth of 25% | |
| 2016 Deprecation of $50 | |
| 2016 Interest rate on short-term debt of 8% | |
| 2016 Tax rate of 35% | |
| 2016 Receivable days of 25 | |
| 2016 Inventory days of 500 | |
| 2016 Capital Expenditure of $60 | |
|
2016 Purchases are 40% of COGS
|
USE CELL REFERENCES.
| Financial Ratio Analysis and Benchmarking | ||||||
| 2012 | 2013 | 2014 | 2015 | 2016E | ||
| Revenue growth | 2.9% | 2.4% | 12.5% | 15.5% | ||
| Gross margin (Gross profit / Revenue) | 48.9% | 46.9% | 51.8% | 52.0% | ||
| Receivable days (AR / Revenue * 365) | 41.9 | 45.0 | 48.0 | 50.9 | ||
| Inventory days (Inventory / COGS * 365) | 424.2 | 432.1 | 436.5 | 476.3 | ||
| Payable days (AP / Purchases * 365) | 15.6 | 13.3 | 10.2 | 9.9 | ||
| NFA turnover (Revenue / NFA) | 2.4 | 2.4 | 2.4 | 3.0 | ||
| HORNIMAN HORTICULTURE | ||||||
| Projected Horniman Horticulture Financial Summary (in thousands of dollars) | ||||||
| 2012 | 2013 | 2014 | 2015 | 2016E | CORRECT VALUE TO MATCH | |
| Revenue | 788.5 | 807.6 | 908.2 | 1048.8 | ||
| Cost of goods sold | 402.9 | 428.8 | 437.7 | 503.4 | ||
| Gross profit | 385.6 | 378.8 | 470.5 | 545.4 | ||
| SG&A expense | 301.2 | 302.0 | 356.0 | 404.5 | ||
| Interest expense | 0.0 | 0.0 | 0.0 | 0.0 | ||
| 34.2 | 38.4 | 36.3 | 40.9 | |||
| Operating profit | 50.2 | 38.4 | 78.2 | 100.0 | 115.5 | |
| Taxes | 17.6 | 13.1 | 26.2 | 39.2 | ||
| Net profit | 32.6 | 25.3 | 52.0 | 60.8 | ||
| Cash | 120.1 | 105.2 | 66.8 | 9.4 | ||
| 90.6 | 99.5 | 119.5 | 146.4 | |||
| Inventory1 | 468.3 | 507.6 | 523.4 | 656.9 | ||
| Other current assets2 | 20.9 | 19.3 | 22.6 | 20.9 | ||
| Current assets | 699.9 | 731.6 | 732.3 | 833.6 | ||
| Net fixed assets3 | 332.1 | 332.5 | 384.3 | 347.9 | ||
| Total assets | 1032.0 | 1064.1 | 1116.6 | 1181.5 | 1401.4 | |
| Accounts payable | 6.0 | 5.3 | 4.5 | 5.0 | ||
| Short-term debt | 0.0 | 0.0 | 0.0 | 0.0 | 132.4 | |
| Wages payable | 19.7 | 22.0 | 22.1 | 24.4 | ||
| Other payables | 10.2 | 15.4 | 16.6 | 17.9 | ||
| Current liabilities | 35.9 | 42.7 | 43.2 | 47.3 | ||
| Net worth (Shareholder Equity) | 996.1 | 1021.4 | 1073.4 | 1134.2 | ||
| Total Liabilities and Shareholder Equity | 1032.0 | 1064.1 | 1116.6 | 1181.5 | 1401.4 | |
| Capital expenditure | 22.0 | 38.8 | 88.1 | 4.5 | ||
| Purchases4 | 140.8 | 145.2 | 161.2 | 185.1 | ||
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