Question: Complete the following forecasting table? Show your equations. Forecast Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Sales growth rate 9.39% 8.31%
Complete the following forecasting table? Show your equations.
| Forecast Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| Sales growth rate | 9.39% | 8.31% | 8.42% | 7.60% | 6.80% | 6.00% | 5.30% | 4.50% | 3.80% | 3.00% |
| NOPAT margin | 9.89% | 10.49% | 11.09% | 10.50% | 9.90% | 9.30% | 8.70% | 8.10% | 7.60% | 7.00% |
| Beginning net operating working/sales | 10.60% | 9.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% |
| Beginning net operating long-term assets/sales | 58.10% | 57.00% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% |
| Beginning net debt to captial ratio | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% |
| After-tax cost of debt | 1.50% | 1.70% | 1.90% | 2.10% | 2.30% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| Beginning Balance Sheet | ||||||||||
| Beg net working capital | 23191.95 | |||||||||
| + Beg net long term assets | 127118.15 | |||||||||
| = net operating assets | 150310.10 | |||||||||
| Net Debt | 85977.38 | |||||||||
| +Preferred stock (Assume zero for all the years) | 0.00 | |||||||||
| + Shareholders' equity | 64332.72 | |||||||||
| = Net Capital | 150310.10 | |||||||||
| Income Statement | ||||||||||
| Sales | 218792.00 | |||||||||
| Net operating profits after tax | 21645.97 | |||||||||
| -Net interes expese after tax | 1289.66 | |||||||||
| = Net Income | 20356.31 | |||||||||
| - Preferred dividends (Assume 0 for all the years) | 0.00 | |||||||||
| = Net Income to common | 20356.31 | |||||||||
| Operating return on assets | 14.40% | |||||||||
| Return on common equity | 31.64% | |||||||||
| Book value of assets growth rate | 5.00% | |||||||||
| Book value of common equity growth rate | 5.00% | |||||||||
| Net operating asset turnover | 1.46 | |||||||||
| Cash Flow Data | ||||||||||
| Net income | 20356.31 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -Change in net long-term assets | -127118.15 | |||||||||
| + Change in net debt | -85977.38 | |||||||||
| =Free cash flow to equity | 84689.03 | |||||||||
| Net operating profit after tax | 21645.97 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -change in net long term assets | -127118.15 | |||||||||
| = Free cash flow to capital | 171956.07 | |||||||||
| Forecast Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| Sales growth rate | 9.39% | 8.31% | 8.42% | 7.60% | 6.80% | 6.00% | 5.30% | 4.50% | 3.80% | 3.00% |
| NOPAT margin | 9.89% | 10.49% | 11.09% | 10.50% | 9.90% | 9.30% | 8.70% | 8.10% | 7.60% | 7.00% |
| Beginning net operating working/sales | 10.60% | 9.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% |
| Beginning net operating long-term assets/sales | 58.10% | 57.00% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% |
| Beginning net debt to captial ratio | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% |
| After-tax cost of debt | 1.50% | 1.70% | 1.90% | 2.10% | 2.30% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| Beginning Balance Sheet | ||||||||||
| Beg net working capital | 23191.95 | |||||||||
| + Beg net long term assets | 127118.15 | |||||||||
| = net operating assets | 150310.10 | |||||||||
| Net Debt | 85977.38 | |||||||||
| +Preferred stock (Assume zero for all the years) | 0.00 | |||||||||
| + Shareholders' equity | 64332.72 | |||||||||
| = Net Capital | 150310.10 | |||||||||
| Income Statement | ||||||||||
| Sales | 218792.00 | |||||||||
| Net operating profits after tax | 21645.97 | |||||||||
| -Net interes expese after tax | 1289.66 | |||||||||
| = Net Income | 20356.31 | |||||||||
| - Preferred dividends (Assume 0 for all the years) | 0.00 | |||||||||
| = Net Income to common | 20356.31 | |||||||||
| Operating return on assets | 14.40% | |||||||||
| Return on common equity | 31.64% | |||||||||
| Book value of assets growth rate | 5.00% | |||||||||
| Book value of common equity growth rate | 5.00% | |||||||||
| Net operating asset turnover | 1.46 | |||||||||
| Cash Flow Data | ||||||||||
| Net income | 20356.31 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -Change in net long-term assets | -127118.15 | |||||||||
| + Change in net debt | -85977.38 | |||||||||
| =Free cash flow to equity | 84689.03 | |||||||||
| Net operating profit after tax | 21645.97 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -change in net long term assets | -127118.15 | |||||||||
| = Free cash flow to capital | 171956.07 | |||||||||
| Sales growth rate | 9.39% | 8.31% | 8.42% | 7.60% | 6.80% | 6.00% | 5.30% | 4.50% | 3.80% | 3.00% |
| NOPAT margin | 9.89% | 10.49% | 11.09% | 10.50% | 9.90% | 9.30% | 8.70% | 8.10% | 7.60% | 7.00% |
| Beginning net operating working/sales | 10.60% | 9.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% | 8.60% |
| Beginning net operating long-term assets/sales | 58.10% | 57.00% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% | 55.70% |
| Beginning net debt to captial ratio | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% | 57.20% |
| After-tax cost of debt | 1.50% | 1.70% | 1.90% | 2.10% | 2.30% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| Beginning Balance Sheet | ||||||||||
| Beg net working capital | 23191.95 | |||||||||
| + Beg net long term assets | 127118.15 | |||||||||
| = net operating assets | 150310.10 | |||||||||
| Net Debt | 85977.38 | |||||||||
| +Preferred stock (Assume zero for all the years) | 0.00 | |||||||||
| + Shareholders' equity | 64332.72 | |||||||||
| = Net Capital | 150310.10 | |||||||||
| Income Statement | ||||||||||
| Sales | 218792.00 | |||||||||
| Net operating profits after tax | 21645.97 | |||||||||
| -Net interes expese after tax | 1289.66 | |||||||||
| = Net Income | 20356.31 | |||||||||
| - Preferred dividends (Assume 0 for all the years) | 0.00 | |||||||||
| = Net Income to common | 20356.31 | |||||||||
| Operating return on assets | 14.40% | |||||||||
| Return on common equity | 31.64% | |||||||||
| Book value of assets growth rate | 5.00% | |||||||||
| Book value of common equity growth rate | 5.00% | |||||||||
| Net operating asset turnover | 1.46 | |||||||||
| Cash Flow Data | ||||||||||
| Net income | 20356.31 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -Change in net long-term assets | -127118.15 | |||||||||
| + Change in net debt | -85977.38 | |||||||||
| =Free cash flow to equity | 84689.03 | |||||||||
| Net operating profit after tax | 21645.97 | |||||||||
| -Change in net working capital | -23191.95 | |||||||||
| -change in net long term assets | -127118.15 | |||||||||
| = Free cash flow to capital | 171956.07 |
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