Create a chart of sales by year for all years

Assignment Help Corporate Finance
Reference no: EM133123018

The Income statement and balance sheet for Camelot Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in accumulated depreciation. Sales next year should be $4.3M, and the dividend payment to common stockholders will equal the dividend payment in 2009. Interest expense will vary with sales.

1. Using percentage of sales analysis techniques prepare a pro forma income statement and balance sheet for the next year.

2. Create a chart of sales by year for all years, including your pro forma estimate.

3. Add a trend line.

4. Create a scatter plot of sales vs. cogs. Add a trend line.

5. Regress cogs against sales.

6. Using your sales trendline and annual sales data forecast the sales level in the next 3 years (3 years after the year with 4.3M in sales). Forecast using the trend line as well as at least one of the following: trend, linest, regression.

Reference no: EM133123018

Questions Cloud

Unemployed and have no college education : 1. If you are unemployed and have no college education, but your house breaks down, can you borrow capital for financing?
Assignment on risk management : In the aftermath of the 2007-8 Global Financial Crisis, Andrew Haldane, Chief Economist, Bank of England in a speech entitled 'Why Banks Failed the Stress Test'
What is the risk premium on the market : The Treasury bill rate (i.e. risk-free rate) is 1.5%, and the expected return on the market portfolio is 15%. Using the capital asset pricing model
What quarterly payment should you make : After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 22.00 years. To build up your retirement fund
Create a chart of sales by year for all years : The Income statement and balance sheet for Camelot Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year
Discuss the different risks alibaba is facing : 1) How does the financing with bonds differ from Alibaba's previous forms of debt financing with syndicated loans?
Flotation costs of issuing new securities : In your opinion, does that infer anything about the flotation costs of issuing new securities? Why?
Estimate the unlevered beta of the firm : Chrysler, the automotive manufacturer, had a beta of 1.05 in 1995. It had $13billion in debt outstanding in that year, and 355 million shares trading at $50per
Goal of government linked corporations : Discuss if the goal of Government Linked Corporations (GLC) is similar to those of corporations at large.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Prepare a memorandum

Prepare a memorandum identifying as to which of the two (2) entity forms that Shirley and Clarence should select (considering both Tax and Nontax Factors)

  What is the cash price of the car

Under the terms of her finance agreement she is required to make payments of $210/month for 48 months. What is the cash price of the car? (Round your answer to the nearest cent.)

  What is the price of share of this preferred stock

A corporation is making preferred dividend payments of $ .75 per quarter and the rate of return is 6%. What is the price of share of this preferred stock? (Hint: The approach is similar to the calculation of the price of a share of common stock, b..

  Calculate the percent return for each stock for each month

For each company, find the closing, monthly stock price for the company over the last four years. Finance Yahoo is an ideal place to find the data. Here is a short video to help you with this process: Once the price data is in a spreadsheet, calcu..

  Explain with a graph how sml is different from cml

Explain with a graph how SML is different from CML. Why CAPM equation might be more relevant than other equations when calculating required rate of return.

  Explain how the sharpe ratio is used to manage risk

Describe how variance and standard deviation are used to measure the variability of individual stocks.Explain how the Sharpe Ratio is used to manage risk.

  Preparing of single step and multi step income statements

Preparing of single step and multi step income statements given the revenue and expenses account balances and tax rate and prepare two income statements and the Retained Earnings Statement. Use the single-step format and multiple-step income formats.

  Problem baobab rolling mills owns a lathe machine which was

problem baobab rolling mills owns a lathe machine which was purchased 10 years ago at sh. 75 million. the machine had

  What are the fundamental reasons for dells success

What are the fundamental reasons for Dell's success? What should Dell do next to maintain its competitive advantage? Is its business model still viable? Will the Dell Formula work elsewhere? If not, why not?

  Analyze the case study frank smith plumbing

Analyze whether the investment in the truck is profitable. Compare the cost of the truck to the cash flow records. Explain whether it is more beneficial for Frank to close his business. Explain what you would do in this same situation.

  Determine the npv and irr of the project

Determine the NPV and IRR of the project. Should the company accept or reject the project based on the NPV? Why? What is your final accept or reject decision?

  Prepare a statement of cash flows for a hypothetical company

Investing activities and operating activities- Prepare a statement of cash flows for a hypothetical company using appropriate financial data and methods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd