Year Sales Annual Growth Rate

2012 2,058
2013 2,534 23.1%
2014 2,472 -2.4%
2015 2,850 15.3%
2016 3,000 5.3%

Arithmetic average annual growth rat 10.3%

Compound geometric annual growth 9.88%

Regression
Projected sales for 2017 3242.8
Growth rate 8.09%
 Sales

2013 2014 2015 2016

INCOME STATEMENTS 2016 BALANCE SHEETS 2016
Assets S0
Sales 3,000.00 Cash 9.98 g
Costs except depreciation 2,616.20 ST Investments 0.00 S1
Depreciation 100.00 Accounts receivable 375.00 ΔS
Total operating costs 2,716.20 Inventories 615.00 A0*
EBIT 283.80 Total current assets 999.98 A0* / S0
Less interest (INT) 88.00 Net plant and equip. 1,000.00 L0*
Earnings before taxes (EBT) 195.80 Total assets 1,999.98 L0* /S0
Taxes (40%) 78.32 Profit margin (M)
Income before pref. dividends 117.48 Liabilities and equity Payout ratio (POR)
Preferred dividends 4.00 Accounts payable 60.00
Net income for common (NI) 113.48 Accruals 140.00 AFN
Notes payable 110.00
Dividends to common
Add. to retained (DIVs)
earnings: 57.50 Total current liab. 310.00
(NI – DIVs) Long-term bonds 754.00
55.98 Total liabilities 1,064.00
Shares of common stock 50.00 Preferred stock 40.00
Earnings per share (EPS) 2.27 Common stock 130.00
Dividends per share (DPS) 1.15 Retained earnings 765.98
Price per share (P) 23.00 Total common equity 895.98
Total liab. & equity 1,999.98
Last year's sales, i.e., 2016 sales 3,000.00
Forecasted growth rate in sales 10.00%
Coming year's sales, i.e., 2017 sales = S0 × (1 + g) 3,300.00
Change in sales = S1 – S0 = ΔS 300.00
Assets that must increase to support the increase in sales 1,999.98
Required assets per dollar of sales 66.7%
Last year's spontaneous liabilities, i.e., payables + accruals 200.00
Spontaneous liabilities per dollar of sales 7%
2016 profit margin = net income/sales 3.8%
Last year's dividends / net income = % of income paid out 50.7%

=(A0*/S0)∆S - (L0*/S0)∆S –S1M(1-POR) 118.42

INCOME STATEMENTS 2016 BALANCE SHEETS 2016
Assets
Sales 3,000.00 Cash 9.98
Costs except depreciation 2,616.20 ST Investments 0.00
Depreciation 100.00 Accounts receivable 375.00
Total operating costs 2,716.20 Inventories 615.00
EBIT 283.80 Total current assets 999.98
Less interest (INT) 88.00 Net plant and equip. 1,000.00
Earnings before taxes (EBT) 195.80 Total assets 1,999.98
Taxes (40%) 78.32
Income before pref. dividends 117.48 Liabilities and equity
Preferred dividends 4.00 Accounts payable 60.00
Net income for common (NI) 113.48 Accruals 140.00
Notes payable 110.00
Dividends to common
Add. to retained (DIVs)
earnings: 57.50 Total current liab. 310.00
(NI – DIVs) Long-term bonds 754.00
55.98 Total liabilities 1,064.00
Shares of common stock 50.00 Preferred stock 40.00
Earnings per share (EPS) 2.27 Common stock 130.00
Dividends per share (DPS) 1.15 Retained earnings 765.98
Price per share (P) 23.00 Total common equity 895.98
Total liab. & equity 1,999.98
Investor supplied capita 1,799.98
Inputs PROJECTED INCOME STATEMENTS 2017
Operating Ratios: Forecast basis
Growth rate in sales 5.26% Sales 10.00% 3,300.00
Op costs except depr'n / Sales 87.21% Costs except depreciation 2877.82
Depr'n / Net plant & equip. 10.00% Depreciation 110
Cash / Sales 0.33% Total operating costs 2987.82
Accounts Rec. / Sales 12.50% EBIT 312.18
Inventory / Sales 20.50% Less interest (INT) 92.84
Net plant & equip. / Sales 33.33% Earnings before taxes (EBT) 219.34
Accounts Pay. / Sales 2.00% Taxes (40%) 87.736
Accruals / Sales 4.67% Income before pref. dividends 131.60
Tax rate: 40.00% Preferred dividends 4
Financing Data: Net income for common (NI) 127.60
Notes payable/Investor-sup ca 6.11% Shares of common stock 50
LT bonds/Investor-sup capital 41.89% Dividend per share 1.242
Pref. stock/Investor-sup cap. 2.22% Dividends to common
Add. to retained (DIVs)
earnings: 62.1
Comm equity/Investor-sup cap 49.78% (NI – DIVs) 65.50
Interest rate on notes payable 9.00%
Interest rate on L-T bonds 11.00% PROJECTED BALANCE SHEETS
Dividend rate on pfd stock 10.00% Assets
Target dividend payout ratio 50.67% Cash 10.978
Dividend to be increased by 8% ST Investments 0
Accounts receivable 412.5
Inventories 676.5
Total current assets 1100.0
Net plant and equip. 1100
Total assets 2200.0

Liabilities and equity

Accounts payable 66
Accruals 154
Notes payable 224.494
Total current liab. 444.494
Long-term bonds 754.00
Total liabilities 1198.5
Preferred stock 40.00
Common stock 130.00
Retained earnings 831.48
Total common equity 961.48
Total liab. & equity 2200.0
Required assets 2200.0
Specified sources of financing 2,085.48
AFN 114.494
Required additional notes payable 114.494
Additional shortterm investment 0.000