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Pro forma assumptions
Pro forma balance sheets 1-5 years
Pro forma income statements 1-5 years
Pro forma ratio and sustainable growth analysis
01/06/2017
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Discussion of Output
1. The red field labeled "Required External Financing" at the bottom of the Balance Sheets is the
amount of external financing calculated by the computer that is implied by your forecasts.
A positive number in the field implies a need for cash. The ensuing calculations assume
the financing requirements are funded with short-term debt and assess interest expense accordingly.
A negative financing requirement is assumed to be invested in securities and earns interest.
Interest income and expense, and the ratios in Table D, are consistent with these assumptions.
Once you know the sign and magnitude of the external financing requirement, you can fine-tune
your forecast by assuming all or a portion of the financing will be funded with long-term debt
or equity; or that a negative financing requirement will be invested in securities. To enter these
adjustments, return to Table A using the View Output button at the Main Menu. Make your changes
at the bottom of Table A in the fields labeled for fine tuning. Remember that these adjustments
are INCREMENTAL to the forecast numbers. Click the Analyze button when you are finished.
2. The forecast assumes that dividends will be paid only if income available for common is positive.
3. The ratios in Table D are the same as those in Table F of FSA. See the instructions to
FSA for detailed definitions.
01/06/2017
Actuals:
Net sales
Net plant
Long-term debt
Owner's equity
01/06/2017
Published by Irwin/McGraw-Hill
ASSETS
Cash
Securities
Accounts receivable
Inventory
Other current assets
Total current assets
Net property, plant, etc.
Other investments
Other long-term assets
Total Assets
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Ext'l Fin
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Total liabilities
Preferred stock
Owners' equity
Total equity
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01/06/2017
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Net sales
Cost of goods sold
Gross profit
Operating expenses
Operating income
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Net income
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Common dividends
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PROFITABILITY RATIOS:
Return on equity (%)
Return on assets (%)
Return on inv. captial (%)
Profit margin (%)
Gross margin (%)
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TURNOVER-CONTROL RATIOS:
Asset turnover (x)
Inventory turnover (x)
Collection period (days)
Days sales in cash (days)
Payables period (days)
Fixed asset turnover (x)
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1996
1997
REQUIRED RATIOS:
Profit margin (P)
Retention ratio (R)
Asset turnover (A)
Financial leverage# (T)
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01/06/2017
Published by Irwin/McGraw-Hill
DialogData
Month
Date
January
Februrary
March
April
May
June
July
August
September
October
November
December
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Analysis Years
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ProformaDialog
Dell
Currency, Scale
(e.g. $ in Millions)
$ in Millions
January
Februrary
March
April
1995
May
June
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July
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August
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September
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October
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November
December
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