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You are required to prepare the proposed financial statements for Vitex Corp 2003
- 2006 starting with historical statements from 1999 to 2002 with the following
operating financial conditions:
1
Items in the financial Forecasting Explanation
statements factors
Balance sheet ($ Million)
Asset
is 2.1% based on revenue per historical
Cash and equivalences 2.1% average
is 8.4% by melon revenue above historical
Receivables 8.4% average
Inventory 8.8% is 8.8% based on revenue per historical average
is 7.6% according to the turnover above the
Other short term assets 7.6% historical average
Total short term assets
Property, equipment, Gross 10.0% The growth rate is 10% per year
Accumulated deprecation Calculate from another item
Property, equipment, Net Calculate from another item
Total assets
2
Questions:
3. After you have three expected financial statements, apply the following
financial analysis for the four expected future years of the company. Does
the company guarantee that free cash flow will grow over time in the future?
5. As a financial risk analyst, you are required to propose future policies for
the company to reduce the amount of external fund needed and ensure ROE
and ROS of 20%. Please present the forecast results with the proposed
policies.
Profitability Ratios
ROE
ROS
3
Growth Rates
EPS Growth Rate
Dividend Growth Rate
Sales Growth Rate
EBIT Growth Rate
Net Income Growth Rate
Liquidity Ratios
Current Ratio
Quick Ratio
Leverage Ratios
Debt/Equity
Debt/Total capital
Coverage ratios
Tiems interest earned
Cash Coverage Ratio