Generate a cash flow forecast

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Reference no: EM131200130

Financial Forecasting Assignment-

The historical financial statements of HWO Incorporated are on the accompanying EXCEL file. Enter your assigned number in cell l1 (eye one). This is your individual data set. Print the page as the first page of your homework package.

On the "pro formae" tab you will find a template with no coding to use. You will find some compulsory assumptions. Your first job is to do a three-year pro forma analysis -fill in the template. Here are some more assumptions.

1. Cost of sales and selling expense are variable. General expense is a fixed cash operating cost.

2. Income tax rate has risen to a flat 0.41

3. Receivables, inventory, accounts payable and accruals are the only spontaneous working capital items.

4. 2015 capital investment for replacement purposes was $111 [million]

5. Capital investment for expansion will be in proportion to sales growth. Use the method [modified as needed] that I showed you.

6. Depreciation is 1/14 of previous year's gross fixed assets

Just like we did in class, note all assumptions [including yours] in each row.

Write a one or two-sentence comment on the meaning of your "plug" figures. Print this pro forma to fit one page for page 2 of your package.

Your second job is to use the same assumptions to generate a cash flow forecast [EBITDA method], using the template under the EBITDA tab. Print this as the third page in your submission package.

In the grading, error has different weights, based on the severity.

Attachment:- Assignment.rar

Reference no: EM131200130

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