| Managerial Finance-Fin 652 |
| Module 2 Assignment |
| United Airlines (UAL) |
| Net sales (In thousands) | 2013 | 2012 | 2011 |
| | 38,279,000 | 37,152,000 | 37,110,000 |
| Growth Rate 1= | 0.113% | Growth Rate1=(2012 sales-2011 sales)/2011 Sales |
| Growth Rate 2= | 3.03% | Growth Rate2=(2013 sales-2012 sales)/2012 Sales |
| Average annual grouwth rate(AAGR)= | 1.57% | AAGR=(Growth Rate 1 + Growth Rate 2)/2 |
| Forecast the 2014 Income Statement | (In Thousands) |
| Item | 2013 Actual | Forecast Basis | 2014 Forecast |
| Total Revenue | $38,279,000 | 1.0157 | $38,879,980.3 |
| Cost of Revenue | ($17,192,000) | 1.0157 | ($17,461,914.4) |
| Gross Profit | $21,087,000 | | $21,418,065.9 |
| Operating Expenses |
| Research and Development | - |
| Selling General and Administrative | ($17,629,000) | 1.0157 | ($17,905,775.3) |
| Non Recurring | ($520,000) | | ($520,000) |
| Others | ($1,689,000) | | ($1,689,000) |
| Total Operatinig Expenses | ($19,838,000) | | ($20,114,775) |
| Operating Income or Loss | $1,249,000 | | $1,303,291 |
| Income from Continuing Operations |
| Total Other Income/Expenses Net | $24,000 | | $24,000 |
| Earnings Before Interest and Taxes | $1,273,000 | | $1,327,291 |
| Interest Expenses | ($734,000) | | ($734,000) |
| Income Before Taxes | $539,000 | | $593,291 |
| Income Tax Expense 5.94%(Deferred Income Tax Benefit) | $32,017 | | $35,241 |
| Minority Interest |
| Net Income From Continuing Ops | $571,017 | | $628,532 |
| Net Income | $571,017 | | $628,532 |
| Net Income Applicable To Common Shares | $571,017 | | $628,532 |
| Forecast the 2014 Balance Sheet | (In Thousands) |
| Item | 2013 Actual | Forecast Basis | 2014 Forcast | Change |
| Asset |
| Curent Assets |
| Cash and Cash Equivalents | $3,251,000 | 1.0157 | $3,302,041 | $51,041 |
| Short Term Investments | $1,901,000 | 1.0157 | $1,930,846 | $29,846 |
| Net Receivables | $2,179,000 | 1.0157 | $2,213,210 | $34,210 |
| Inventory | $667,000 | 1.0157 | $677,472 | $10,472 |
| Other Current Assets | $704,000 | | $704,000 | $0 |
| Total Current Assets | $8,702,000 | | $8,827,569 | $125,569 |
| Long Term Investments |
| Property Plant and Equipment | $18,047,000 | 1.0157 | $18,330,338 | $283,338 |
| Goodwill | $4,523,000 | | $4,523,000 | $0 |
| Intangible Assets | $4,436,000 | | $4,436,000 | $0 |
| Accumulated Amoritization | - | | - | - |
| Other Assets | $1,104,000 | | $1,104,000 | $0 |
| Deferred Long Term Asset Charges | - | | - | - |
| Total Assets | $36,812,000 | | $37,220,907 | $408,907 |
| Liabilities |
| Current Liabilities |
| Accounts Payable | $7,188,000 | 1.0157 | $7,300,852 | $112,852 |
| Short/Current Long Term Debt | $1,485,000 | 1.0157 | $1,508,315 | $23,315 |
| Other Current Liabilities | $3,434,000 | | $3,434,000 | $0 |
| Total Current Liabilities | $12,107,000 | | $12,243,166 | $136,166 |
| Long Term Debt | $10,924,000 | | $10,924,000 | $0 |
| Other Liabilities | $6,600,000 | | $6,600,000 | $0 |
| Deferred Long Term Liability Charges | $4,197,000 | 1.0157 | $4,262,893 | $65,893 |
| Minority Interest | $0 | | $0 | $0 |
| Negative Goodwill | $0 | | $0 | $0 |
| Total Liabilities | $33,828,000 | | $34,030,059 | $202,059 |
| Stockholders' Equity |
| Misc Stocks Options Warrants |
| Redeemable Preferred Stock |
| Preferred Stock |
| Common Stock | $4,000 | | $4,000 | $0 |
| Retained Earnings | ($5,015,000) | | ($5,015,000) | $0 |
| Treasury Stock | ($38,000) | | ($38,000) | $0 |
| Capital Surplus | $7,425,000 | | $7,425,000 | $0 |
| Other Stockholder Equity | $608,000 | | $608,000 | $0 |
| Total Stockholder Equity | $2,984,000 | | $2,984,000 | $0 |
| Net Tangible Assets | ($5,975,000) | | ($5,975,000) | $0 |
| Additional Funds Needed | | | | $206,848 |
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balance_sheet.zip
