Exam 18: Financial Modeling and Pro Forma Analysis

Use the information about Billy's Burgers to answer the following question(s): -Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' Accounts Payable for 2011.

The percent of sales method relies on the idea that capacity increases are ________, even though in practice such increases are ________.

What is common starting point for forecasting?

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -The amount of net working capital for Ideko in 2010 is closest to ________.

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 8.5, then the continuation EV/Sales ratio of Ideko in 2015 is closest to ________.

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 8.5, then the continuation enterprise value of Ideko in 2015 is closest to ________.

How do we know if expansion is a good idea for the firm?

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 9.4, then the continuation levered price-earnings ratio of Ideko in 2015 is closest to ________.

Given the following data for a given period, compute the free cash flow to the firm: Net Income = $12,000 After-tax Interest Expense = $2,000 Depreciation = $1,000 Increase in NWC = $2,000 Capital Expenditures = $1,000

The market size for Loppins is 40 million units. If SPI Inc. has a market share of 40% and the average sales price is $3 per Loppin, what is the dollar amount of sales of SPI?

Pledrea Inc. has EBITDA at the forecast horizon of $10,000. Its EBITDA multiple is 11. What is the terminal value of the firm at the forecast horizon?

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -With the proper changes it is believed that Ideko's credit policies will extend a 60 days credit period to accounts receivables. The forecasted accounts receivable for Ideko in 2013 is closest to ________.

Given the following data for a given period, compute the free cash flow to the firm: Net Income = $5,000 After-tax Interest Expense = $500 Depreciation = $500 Increase in NWC = $1,000 Capital Expenditures = $2,000

Use the information about Billy's Burgers to answer the following question(s): -Using the percent of sales method, and assuming 20% growth in sales and no change in interest expense, estimate Billy's Burgers' Net Income for 2011.

Use the information about Billy's Burgers to answer the following question(s): -Using the percent of sales method, and assuming 20% growth in sales and no change in interest expense, estimate Billy's Burgers' Pretax Income for 2011.

Use the table for the question(s) below. Ideko Sales and Operating Cost Assumptions -Based upon Ideko's Sales and Operating Cost Assumptions, what production capacity will Ideko require in 2009?

The maximum growth rate that a firm can achieve without issuing new equity or by increasing its debt to equity ratio is the firm's sustainable growth rate.

A services firm does all its business in cash only. The firm projects a cash balance of $2,000 in its account after all taxes and costs are paid. The owners plan to invest $5,000 and pay a dividend of $1000. How much net new financing is needed?

What is the free cash flow to equity holders for a firm with free cash flow of $7000, after-tax interest expense of $1,000, and an increase in debt of $3,000?

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -The amount of net working capital for Ideko in 2012 is closest to ________.