Depreciation expense and investment in property plant, Financial Management

Use the excel spreadsheet to project the net income for Winnebago from assumptions about key revenue & expense items.   Use the following assumptions to evaluate the projected net income, operating cash flow and investment cash flow for Winnebago for 2007 by 2011.

Sales Growth through 2011               14.0%
Sales Growth after 2011                    7.0% forever
Variable Costs as a % of Sales          84.0%
Fixed Costs as a % of Sales              4.0%

Depreciation Expense and Investment in Property Plant and Equipment will grow at the similar rate as Sales.  
Because we suppose they pay out all excess cash Financial Income will be zero in the future.

Tax Rate                                      35.0%

Posted Date: 3/15/2013 3:29:37 AM | Location : United States







Related Discussions:- Depreciation expense and investment in property plant, Assignment Help, Ask Question on Depreciation expense and investment in property plant, Get Answer, Expert's Help, Depreciation expense and investment in property plant Discussions

Write discussion on Depreciation expense and investment in property plant
Your posts are moderated
Related Questions
The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

Q. Explain about economic order quantity? The economic order quantity (EOQ) model is basis on a cost function for holding inventory which has two terms: holding costs as well a

Explain the Basis Risk Basis risk considers to the floating rates of two counterparties being pegged to two dissimilar indices.  In this situation, as the indexes are not compl

Residual Method We know that a time series consisting of annual data for longer periods is depicted by trend lines. This facilitates us to isolate the component of secular tre

What was the first argument against traditional approach The first argument against traditional approach was based on its emphasis on issues relating to procurement of funds by

Aggregates Method Under the aggregates method of constructing an index number, we could have unweighted aggregates index and the weighted aggregates index. Unweighted Aggr

Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month. Each production run

Calculate the sustainable growth rate

Does high operating leverage always mean high business risk?  Explain. High operating leverage does not all the time mean high business risk.  If the companies sales are quite

Determine the advantages of explicit cost Explicit cost of an interest bearing debt will be the discount rate which equates present value of the contractual future payments of