For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs
Hatfield Medical Show more Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) 2013 Cash $20 Sales $2000.0 Accts. rec. $280 Op. costs (excl. depr.) Op. costs (excl. depr.) $1800.0 Inventories $400 Depreciation $50.0 Total CA $700 EBIT $150.0 Net fixed assets $500 Interest $40.0 Total assets $1200 Pretax earnings Pretax earnings $110.0 Taxes (40%) $44.0 Accts. pay. & accruals Accts. pay. & accruals $80 Net income $66.0 Line of credit $0 Total CL $80 Dividends $20.0 Long-term debt $500 Add. to RE $46.0 Total liabilities $580 Common shares Common shares 10.0 Common stock $420 EPS $6.6 Retained earnings $200 DPS $2.0 Total common equ. Total common equ. $620 Ending stock price Ending stock price $52.80 Total liab. & equity $1200 Selected Ratios and Other Data 2013 Selected Ratios and Other Data 2013 Selected Ratios and Other Data 2013 Hatfield Industry Hatfield Industry Op. costs/Sales 90% 88% Total liability/Total assets Total liability/Total assets 48.3% 36.7% Depr./FA 10% 12% Times interest earned Times interest earned 3.8 8.9 Cash/Sales 1% 1% Return on assets (ROA) Return on assets (ROA) 5.5% 10.2% Receivables/Sales 14% 11% Profit margin (M) Profit margin (M) 3.30% 4.99% Inventories/Sales 20% 15% Sales/Assets 1.67 2.04 Fixed assets/Sales 25% 22% Assets/Equity 1.94 1.58 Acc. pay. & accr. / Sales Acc. pay. & accr. / Sales 4% 4% Return on equity (ROE) Return on equity (ROE) 10.6% 16.1% Tax rate 40% 40% P/E ratio 8.0 16.0 ROIC 8.0% 12.5% NOPAT/Sales 4.5% 5.6% Total op. capital/Sales Total op. capital/Sales 56.0% 45.0% Additional Data 2014 Exp. Saled growth rate Exp. Saled growth rate 10% Interest rate on LT debt Interest rate on LT debt 8% Target WACC 9% e. Use the following assumptions to answer the questions below: (1) Operating ratios remain unchanged. (2) Sales will grow by 10% 8% 5% and 5% for the next four years. (3) The target weighted average cost of capital (WACC) is 9%. This is the No Change scenario because operations remain unchanged. e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) 2013 Cash $20 Sales $2000.0 Accts. rec. $280 Op. costs (excl. depr.) Op. costs (excl. depr.) $1800.0 Inventories $400 Depreciation $50.0 Total CA $700 EBIT $150.0 Net fixed assets $500 Interest $40.0 Total assets $1200 Pretax earnings Pretax earnings $110.0 Taxes (40%) $44.0 Accts. pay. & accruals Accts. pay. & accruals $80 Net income $66.0 Line of credit $0 Total CL $80 Dividends $20.0 Long-term debt $500 Add. to RE $46.0 Total liabilities $580 Common shares Common shares 10.0 Common stock $420 EPS $6.6 Retained earnings $200 DPS $2.0 Total common equ. Total common equ. $620 Ending stock price Ending stock price $52.80 Total liab. & equity $1200 Selected Ratios and Other Data 2013 Selected Ratios and Other Data 2013 Selected Ratios and Other Data 2013 Hatfield Industry Hatfield Industry Op. costs/Sales 90% 88% Total liability/Total assets Total liability/Total assets 48.3% 36.7% Depr./FA 10% 12% Times interest earned Times interest earned 3.8 8.9 Cash/Sales 1% 1% Return on assets (ROA) Return on assets (ROA) 5.5% 10.2% Receivables/Sales 14% 11% Profit margin (M) Profit margin (M) 3.30% 4.99% Inventories/Sales 20% 15% Sales/Assets 1.67 2.04 Fixed assets/Sales 25% 22% Assets/Equity 1.94 1.58 Acc. pay. & accr. / Sales Acc. pay. & accr. / Sales 4% 4% Return on equity (ROE) Return on equity (ROE) 10.6% 16.1% Tax rate 40% 40% P/E ratio 8.0 16.0 ROIC 8.0% 12.5% NOPAT/Sales 4.5% 5.6% Total op. capital/Sales Total op. capital/Sales 56.0% 45.0% Additional Data 2014 Exp. Saled growth rate Exp. Saled growth rate 10% Interest rate on LT debt Interest rate on LT debt 8% Target WACC 9% e. Use the following assumptions to answer the questions below: (1) Operating ratios remain unchanged. (2) Sales will grow by 10% 8% 5% and 5% for the next four years. (3) The target weighted average cost of capital (WACC) is 9%. This is the No Change scenario because operations remain unchanged. e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). e. (1) For each of the next four years forecast the following items: sales cash accounts receivable inventories net fixed assets accounts payable & accruals operating costs (excluding depreciation) depreciation and earnings before interest and taxes (EBIT). Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Income Statement (Millions of Dollars Except per Share) Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of Dollars) 12/31/2013 Hatfield Medical Supplies: Balance Sheet (Millions of…
