Finance case study question: based on these screenshots, how do income and total assets fluctuate with changes in key assumptions?

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A D E F G H 1 1 B B Exhibit 1 MONSANTO COMPANY Income Statement (in millions of dollars) 2 3 4 5 6 7 8 9 Net Sales 10 Roundup 11 Corn Seeds and Traits 12 All Other Years ended August 31 2006 2007 2005 Revenue growth 2009F 2008 2,049 1,494 2.732 6,275 3,280 2.995 2,262 1,793 3.010 7,065 3.622 3,443 2,568 2,807 2,974 8,349 4,119 4.230 4,094 3,542 3.729 5% management forecast 10% management forecast 11% 2008 growth rate 13 11,365 5.188 6,177 14 Cost of Goods Sold 15 Gross Profits 16 17 Selling, General, and Administrative 18 Research & Development 19 Operating Expenses 1,404 813 2,217 1,604 700 2,304 1,858 963 2,821 2,312 1,144 3,456 20 778 1,139 1.409 2,721 304 115 359 104 255 (13) 133 1,019 330 689 (123) 136 1,396 403 993 (312) 110 2,923 899 2.024 21 Net Income from Operations 22 23 Other Expenses 24 Interest Expense 25 Income Before Taxes 26 Income Taxes 27 Net Income 28 29 Data source: Monsanto Company annual reports, 2005-08. 30 31 Version A 32 Roundup growth = 5% 33 34 35 36 37 38 39 40 Title Page Exhibit 1 Fyhibit 2 Evhibit 2 Exhibit a A A B C D E F G H 2 3 4 5 Exhibit 2 MONSANTO COMPANY Balance Sheet (in millions of dollars) Scr 1-06 As of August 31 2006 2005 2007 2008 525 1,473 1,664 982 4,644 1,460 1,455 1,688 858 5,461 866 1,578 1,719 1,000 5,163 1,613 2,703 2,453 1,476 8,245 2,378 2,401 1,156 5,935 2,418 2.751 1,098 6,267 2,656 4,040 1,124 7,820 3,323 4,663 1,760 9,746 10,579 11,728 12,983 17,991 126 525 208 7 7 8 Assets 9 Cash 10 Accounts Receivable 11 Inventory 12 Other Current Assets 13 Current Assets 14 15 Property, Plant, & Equipment, Net 16 Goodwill 17 Other Long-Term Assets) 18 Fixed Assets Se 19 hea 20 Total Assets 21 22 Liabilities and Shareholders' Equity 23 Short-Term Debt 24 Accounts Payable 25 Income Taxes Payable 26 Dividends Payable 27 Deferred Revenues 28 Other Accruals 29 Current Liabilities 30 31 Long-Term Debt 32 Other Deferred Revenue/Liabilities 33 34 Total Liabilities 35 36 Common Stock 37 Treasury Stock 38 Additional Contributed Capital 39 Retained Earnings 40 Shareholders' Equity 41 42 Total Liabilities and Equity 43 44 (a) Includes some long-term receivables 45 Largely deferred taxes 46 47 Data source: Monsanto annual reports, 2005-08. 48 49 28 514 234 55 120 1,328 2,279 270 649 150 96 260 24 1,090 161 132 867 2,165 4,439 1,300 1,650 2,159 3,075 1,458 1,349 1,639 1,285 1,150 1,255 1,792 2,386 4,966 5,203 5,480 8,617 3 (500) 8,588 (2,478) 5,613 6 (623) 8,879 (1,737) 6,525 6 (814) 9,106 (795) ) 7,503 6 6 (1,177) 9,495 1,050 9,374 10,579 11,728 12,983 17,991 A1 fx Exhibit 3 A B C D E F Exhibit 3 MONSANTO COMPANY Statement of Cash Flows (in millions of dollars) 2008 2,024 573 (636) Year Ended August 31 2006 2007 Operating Activities Net Income 689 993 o Adjustments for Items That Did Not Require (Provide) Cash: 1 Depreciation and Amortization 519 527 2 Deferred Taxes (Other Long-Term Assets) 58 (26) 3 Changes is Assets and Liabilities That Provided (Required) Cash: 4 Accounts Receivable(a) 18 (123) 5 Inventory (24) (31) 6 Other Current Assets 124 (142) 7 Accounts Payable (11) 35 8 Income Taxes Payable 26 (84) 9 Dividends Payable 55 41 0 Deferred Revenues 120 140 1 Other Accruals 28 322 2 Other Deferred Revenue/Liabilities (64) (30) 3 Net Cash Provided by Operating Activities 1,538 1,722 4 5 Investing Activities 6 Capital Expenditures (370) (509) 7 Acquisitions (539) (1,545) 8 Net Cash Required by Investing Activities (909) (2,054) 9 o Financing Activities 1 Net Purchases of Short-Term Investments (98) 242 2 Net Long-Term Debt Proceeds 181 (489) 3 Dividend (133) (299) 4 Treasury Stock Purchase (123) (191) 5 Other Equity Account Changes 479 6 Net Cash Required by Financing Activities 306 (262) 7 8 Net Increase (Decrease) in Cash 935 (594) 9 Note: Statement developed by case writer to be consistent with accompanying income statement and (1,125) (734) (476) 441 11 36 607 515 1,131 2,367 (918) (945) (1,863) (246) 642 (481) (363) 691 243 475 747 A B D E F G H 1 1 2 hd 3 -3 4 5 Exhibit 4 MONSANTO COMPANY Corn Production in the United States Year Yield per 6 7 Total Acreage Planted (000) Total Harvest Harvest used for Grain Acre (bushels) Production in Bushels (000) 8 9 1998 80,165 78,502 72,589 10 1999 77,386 76,524 70,487 11 2000 79,551 78,522 72,440 12 2001 75,702 74,910 68,768 13 2002 78,894 76,452 69,330 14 2003 78,603 77,527 70,944 15 2004 80,929 79,732 73,631 16 2005 81,779 81,047 75,117 17 2006 78,327 77,125 70,648 18 2007 93,600 92,613 86,542 19 20 Data source: Agriculture Statistics Board, U.S. Department of Agriculture. 21 22 od 23 24 134.44 133.79 136.87 138.18 129.33 142.21 160.35 147.96 149.12 151.07 9,758,685 9,430,612 9,915,051 9,502,580 8,966,787 10,089,222 11,807,086 11,114,082 10,534,868 13,073,893 A D E F G H 1 1 B B Exhibit 1 MONSANTO COMPANY Income Statement (in millions of dollars) 2 3 4 5 6 7 8 9 Net Sales 10 Roundup 11 Corn Seeds and Traits 12 All Other Years ended August 31 2006 2007 2005 Revenue growth 2009F 2008 2,049 1,494 2.732 6,275 3,280 2.995 2,262 1,793 3.010 7,065 3.622 3,443 2,568 2,807 2,974 8,349 4,119 4.230 4,094 3,542 3.729 5% management forecast 10% management forecast 11% 2008 growth rate 13 11,365 5.188 6,177 14 Cost of Goods Sold 15 Gross Profits 16 17 Selling, General, and Administrative 18 Research & Development 19 Operating Expenses 1,404 813 2,217 1,604 700 2,304 1,858 963 2,821 2,312 1,144 3,456 20 778 1,139 1.409 2,721 304 115 359 104 255 (13) 133 1,019 330 689 (123) 136 1,396 403 993 (312) 110 2,923 899 2.024 21 Net Income from Operations 22 23 Other Expenses 24 Interest Expense 25 Income Before Taxes 26 Income Taxes 27 Net Income 28 29 Data source: Monsanto Company annual reports, 2005-08. 30 31 Version A 32 Roundup growth = 5% 33 34 35 36 37 38 39 40 Title Page Exhibit 1 Fyhibit 2 Evhibit 2 Exhibit a A A B C D E F G H 2 3 4 5 Exhibit 2 MONSANTO COMPANY Balance Sheet (in millions of dollars) Scr 1-06 As of August 31 2006 2005 2007 2008 525 1,473 1,664 982 4,644 1,460 1,455 1,688 858 5,461 866 1,578 1,719 1,000 5,163 1,613 2,703 2,453 1,476 8,245 2,378 2,401 1,156 5,935 2,418 2.751 1,098 6,267 2,656 4,040 1,124 7,820 3,323 4,663 1,760 9,746 10,579 11,728 12,983 17,991 126 525 208 7 7 8 Assets 9 Cash 10 Accounts Receivable 11 Inventory 12 Other Current Assets 13 Current Assets 14 15 Property, Plant, & Equipment, Net 16 Goodwill 17 Other Long-Term Assets) 18 Fixed Assets Se 19 hea 20 Total Assets 21 22 Liabilities and Shareholders' Equity 23 Short-Term Debt 24 Accounts Payable 25 Income Taxes Payable 26 Dividends Payable 27 Deferred Revenues 28 Other Accruals 29 Current Liabilities 30 31 Long-Term Debt 32 Other Deferred Revenue/Liabilities 33 34 Total Liabilities 35 36 Common Stock 37 Treasury Stock 38 Additional Contributed Capital 39 Retained Earnings 40 Shareholders' Equity 41 42 Total Liabilities and Equity 43 44 (a) Includes some long-term receivables 45 Largely deferred taxes 46 47 Data source: Monsanto annual reports, 2005-08. 48 49 28 514 234 55 120 1,328 2,279 270 649 150 96 260 24 1,090 161 132 867 2,165 4,439 1,300 1,650 2,159 3,075 1,458 1,349 1,639 1,285 1,150 1,255 1,792 2,386 4,966 5,203 5,480 8,617 3 (500) 8,588 (2,478) 5,613 6 (623) 8,879 (1,737) 6,525 6 (814) 9,106 (795) ) 7,503 6 6 (1,177) 9,495 1,050 9,374 10,579 11,728 12,983 17,991 A1 fx Exhibit 3 A B C D E F Exhibit 3 MONSANTO COMPANY Statement of Cash Flows (in millions of dollars) 2008 2,024 573 (636) Year Ended August 31 2006 2007 Operating Activities Net Income 689 993 o Adjustments for Items That Did Not Require (Provide) Cash: 1 Depreciation and Amortization 519 527 2 Deferred Taxes (Other Long-Term Assets) 58 (26) 3 Changes is Assets and Liabilities That Provided (Required) Cash: 4 Accounts Receivable(a) 18 (123) 5 Inventory (24) (31) 6 Other Current Assets 124 (142) 7 Accounts Payable (11) 35 8 Income Taxes Payable 26 (84) 9 Dividends Payable 55 41 0 Deferred Revenues 120 140 1 Other Accruals 28 322 2 Other Deferred Revenue/Liabilities (64) (30) 3 Net Cash Provided by Operating Activities 1,538 1,722 4 5 Investing Activities 6 Capital Expenditures (370) (509) 7 Acquisitions (539) (1,545) 8 Net Cash Required by Investing Activities (909) (2,054) 9 o Financing Activities 1 Net Purchases of Short-Term Investments (98) 242 2 Net Long-Term Debt Proceeds 181 (489) 3 Dividend (133) (299) 4 Treasury Stock Purchase (123) (191) 5 Other Equity Account Changes 479 6 Net Cash Required by Financing Activities 306 (262) 7 8 Net Increase (Decrease) in Cash 935 (594) 9 Note: Statement developed by case writer to be consistent with accompanying income statement and (1,125) (734) (476) 441 11 36 607 515 1,131 2,367 (918) (945) (1,863) (246) 642 (481) (363) 691 243 475 747 A B D E F G H 1 1 2 hd 3 -3 4 5 Exhibit 4 MONSANTO COMPANY Corn Production in the United States Year Yield per 6 7 Total Acreage Planted (000) Total Harvest Harvest used for Grain Acre (bushels) Production in Bushels (000) 8 9 1998 80,165 78,502 72,589 10 1999 77,386 76,524 70,487 11 2000 79,551 78,522 72,440 12 2001 75,702 74,910 68,768 13 2002 78,894 76,452 69,330 14 2003 78,603 77,527 70,944 15 2004 80,929 79,732 73,631 16 2005 81,779 81,047 75,117 17 2006 78,327 77,125 70,648 18 2007 93,600 92,613 86,542 19 20 Data source: Agriculture Statistics Board, U.S. Department of Agriculture. 21 22 od 23 24 134.44 133.79 136.87 138.18 129.33 142.21 160.35 147.96 149.12 151.07 9,758,685 9,430,612 9,915,051 9,502,580 8,966,787 10,089,222 11,807,086 11,114,082 10,534,868 13,073,893