Economics

Forecasting.xlsx

Home >Business & Finance homework help >Economics homework help >Economics

Table 6.2

	Enter date for the prior year and results as per your ratios calculations from your Topic 4 worksheet into column C
Forecast year	2017.0	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	Beyond 2027		The important aspect of this worksheet is to determine what the forecast assumptions are for your company
Forecasting assumptions for Bega														for the next few years. Therefore, analysis of previous performance and a thorough understanding of the economy and industry
Sales growth rate	Review: Review: Values entered in this section do not affect calculations but may assist in reviewing your future projections													are important to determine what these values should be
NOPAT margin	17.8	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%	17.8%
Beginning net operating working capital to sales	50.61	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%	48.0%
Beginning net operating long-term assets to sales														Enter values for these 7 rows
Debt ratio
After tax cost of debt
Dividend rate %
Income statement ($'000)
Sales	2,883 Review: Review: Enter a value here sourced from previous financial statements	2,883	2,883	2,883	2,883	2,883	2,883	2,883	2,883	2,883	2,883	2,883
Net operating profit after tax		513	513	513	513	513	513	513	513	513	513	513
Net interest expense after tax		0	0	0	0	0	0	0	0	0	0	0
Net income		513	513	513	513	513	513	513	513	513	513	513
Preference dividends Review: Review: If necessary, enter values in this row for columns D to N		0	0	0	0	0	0	0	0	0	0	0		Enter values, as needed, for this row
Net income to common		513	513	513	513	513	513	513	513	513	513	513
Beginning balance sheet ($'000)
Beginning net working capital		1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384
Beginning net long-term assets		0	0	0	0	0	0	0	0	0	0	0
Net operating assets	4570.8 Review: Review: Enter a value here sourced from previous financial statements	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384
Net debt		0	0	0	0	0	0	0	0	0	0	0
Opening equity		1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384
Equity injections needed		0	0	0	0	0	0	0	0	0	0	0
Net capital (beginning)		4,571	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384
Profit		513	513	513	513	513	513	513	513	513	513	513
Dividend distributions		0	0	0	0	0	0	0	0	0	0	0
Equity issues														Enter values, as needed, for this row
Closing equity	3601.2 Review: Review: Enter a value here sourced from previous financial statements	6,468	3,281	3,281	3,281	3,281	3,281	3,281	3,281	3,281	3,281
Net capital (closing)	4,571 Review: Review: Enter a value here sourced from previous financial statements	Review: Review: Values entered in this section do not affect calculations but may assist in reviewing your future projections	Review: Review: Enter a value here sourced from previous financial statements	Review: Review: Enter a value here sourced from previous financial statements	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384	1,384
Ratios
Operating return on assets (%)		37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%
Return on equity (%)		37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%	37.1%
Book value of assets growth (%)		-69.7%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Book value of equity growth (%)		79.6%	-49.3%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Net operating assets turnover		2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1
Cash flows ($'000)
Net income		513	513	513	513	513	513	513	513	513	513
Change in net working capital		0	0	0	0	0	0	0	0	0	0
Change in net long-term assets		0	0	0	0	0	0	0	0	0	0
Change in net debt		0	0	0	0	0	0	0	0	0	0
Free cash flow to equity		513	513	513	513	513	513	513	513	513	513
Net operating profit after tax		513	513	513	513	513	513	513	513	513	513
Change in net working capital		0	0	0	0	0	0	0	0	0	0
Change in net long-term assets		0	0	0	0	0	0	0	0	0	0
Free cash flow to capital		513	513	513	513	513	513	513	513	513	513