USING JOHNSON AND JOHNSON AS THE COMPANY..... Create the sales growth forecast based on the past 5-10 years, which should use multiple methods, such as arithmetic, geometric, regression methods. Excel forms should be used so that it's clear for everyone to see the work." Johnson & Johnson Annual Revenue(Millions of US $) 2023 $85,159 2022 $79,990 2021 $78,740 2020 $82,584 2019 $82,059 2018 $81,581 2017 $76,450 2016 $71,890 2015 $70,074 2014 $74,331 2013 $71,312 2012 $67,224
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USING JOHNSON AND JOHNSON AS THE COMPANY..... Create the sales growth
Johnson & Johnson Annual Revenue (Millions of US $) |
|
---|---|
2023 | $85,159 |
2022 | $79,990 |
2021 | $78,740 |
2020 | $82,584 |
2019 | $82,059 |
2018 | $81,581 |
2017 | $76,450 |
2016 | $71,890 |
2015 | $70,074 |
2014 | $74,331 |
2013 | $71,312 |
2012 | $67,224 |
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- Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? You must use the built-in Excel function to answer this question. Input area: Year Sales 2016 2017 2018 es es e $ 1,500,000 $ 1,750,000 $ 1,400,000 2019 $ 2,000,000 2020 $ 1,600,000 Output area: Next year's salesSubject: accounting ABC Corporation has divisions. One of the division is currently, making a profit of OMR 82,000 per year. On investment of OMR 500,000 and has a target return of 15%. The manager of a company is considering a new investment, which will require additional investment of OMR 100,000 and will generate additional profit of OMR 17,000 per year. Calculate whether or not the new investment is attractive to the company as a whole. Calculate the ROI of the division, with and without new investment and hence determine whether or not manager would decide to accept the new investmentStart with the partial model in Ch07 P26 Build a Model.xlsx on the textbook’s Web site. Traver-Dunlap Corporation has a 15% weighted average cost of capital (WACC). Its most recent sales were $980 million, and its total net operating capital is $970 million. The following table shows estimates of the forecasted growth rates, operating profitability ratios, and capital requirement ratios for the next three years. All of these ratios are expected to remain constant after the third year. Use this information to answer the following questions:a. Use the data to forecast sales, net operating profit after taxes (NOPAT), total net operating capital (OpCap), free cash flow (FCF), growth rate in FCF, and return on invested capital (ROIC) for the next 3 years. What is the FCF growth rate for Year 3, and how does it compare with the growth rate in sales? What is the ROIC for Year 3 and how does it compare with the 15% WACC?b. What is the value of operations at Year 3, Vop,3? What is the current…
- Start with the partial model in Ch07 P26 Build a Model.xlsx on the textbook’s Web site. Traver-Dunlap Corporation has a 15% weighted average cost of capital (WACC). Its most recent sales were $980 million, and its total net operating capital is $970 million. The following table shows estimates of the forecasted growth rates, operating profitability ratios, and capital requirement ratios for the next three years. All of these ratios are expected to remain constant after the third year. Use this information to answer the following questions: Estimated Base Case Data for Traver-Dunlap CorporationForecast Year1 2 3Annual sales growth rate 20% 6% 6%Operating profitability (NOPAT/Sales) 12% 10% 10%Capital requirement (OpCap/Sales) 80% 80% 80%Tax rate 35% 35% 35% Return the growth rates to the original values. Now suppose that the capital requirement ratio can be decreased to 60% for all three years and thereafter. What is the new value of operations? Did it go up or down relative to the…QUESTION As an analyst in the valuation team your job is to perform significant financial modeling and analysis. Your company is seeing a new sales strategy that require your input. The strategy will be effective for the upcoming 4 Years. If the company adopts the new strategy, sales will grow at the rate of 15% per year for three years. Other ratios such as: Asset turnover, gross margin, the capital structure and income tax will remain unchanged. However, depreciation would be applicable at 8% of net fixed assets at the starting of the year. Moreover, the target rate of return for the company is 12%. Additional financial information for current year is mentioned below: Income Statement Sales 50,000 Gross Margin (15%) 7,500 Admin., selling and Distribution expenses (7%) 3,500 Profit before tax 10,000 Tax (35%) 3,500 Profit After Taxes 6,500 Balance Sheet Fixed Assets 17,000 Current Assets 12,000 Equity 25,000…1. Multiplicationtable: (No need the explanation just the answer pls)A manufacturer has invested P750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is P18 and the company expects to sell 50,000 units in the first year. The company's target-return price for this product is P ______. a. 18.23 b.20.25 c.20.70 d.18.10 e.25.202. A ballpen manufacturer have the following costs and expected sales: Variable cost P 10.00 Fixed cost P300,000.00Expected unit sales 50,000 Break-even volume will be P______. a. 30,000 b. 35,000 c. 20,000 d. 25,000 3. If the cost of manufacturing a product is P30 and the item sells for P50, the markup percentage is _____ %. a. 67.7 b. 67.6 c. 66.7 d. 66.8
- Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company. Estimated Year 2019 Year 2020 GDP 11,000 Billion GDP growth 3.5% Sales per share $800 Operating profit margin 12% Depreciation/Fixed Assets 14% Fixed asset turnover 2 Interest rate 3.5% Total asset turnover 0.7 Debt/Total assets 45% Tax rate 36% In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is %Δ Sales per share = 0.015 + 0.75(%Δ GDP) Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020. a. $1,385.77 b. $1,113.58 c. $1,050.65 d. $1,065.67 e. $1,190.06I'm preparing some examples for our next board meeting to illustrate how important it is to accurately align our sales forecasts to our production plans. I could use your help with this work. Andrews ended the year with excess inventory valued at $13,956,000. Had they sold all of their inventory last year at their current prices, how much more revenue could Andrews have generated? Louis Devries Board Member, Operations | Andrews Corporation $28,188,765 $4,523,140 $21,289,000 $13,956,000Hal's Ice Cream Stands $ Thousands Assets Cash and cash equivalents Accounts receivable Inventories Total Current Assets Equipment Less accumulated depreciation Land Holdings Total Assets Liabilities & Shareholders' Equity Accounts Payable Short-term Debt Total Current Liabilities Long-Term Debt Total Liabilities Shareholders' Equity Liabilities & Shareholders' Equity Hal's Income Statement for the Year Ending 12/31/2021 ($ 000s except for earnings per share) Sales Cost of Goods Sold Payroll and employee benefits Gross Operating Profit Selling, general and administrative expenses Income from Operations Interest expense Income taxes Net Income Earnings per share of common stock ($) 2021 $100 50 75 $225 300 (5) 15 $535 200 50 250 100 350 ??? $535 $500 100 200 200 100 100 5 20 $75 $0.25
- Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? A. 68.57% B. 171.43% C. 40% O D. 22.57% $6,000,000 2,400,000 3,500,000 790,000 COScenario Karen Lamont is in the process of starting a new business and wants to forecast the first year's income statement and balance sheet. She has made several assumptions, which are shown below: • Lamont has projected the firm's sales will be $1 million in the first year. • She believes that the operating and gross ● profit margins will be 20 percent and 50 percent, respectively. For working capital, Lamont has estimated the following: Accounts receivable as a percentage of sales: 12% • Inventory as a percentage of sales: 15% Accounts payable as a percentage of sales: 7% ● • Accruals as a percentage of sales: 5% • A bank has agreed to loan her $300,000, consisting of $100,000 in short-term debt and $200,000 in long-term debt. Both loans will have an 8 percent interest rate. • The firm's tax rate will be 30 percent. ● ● • Lamont will need to purchase $350,000 in plant and equipment. Lamont will keep cash in the business that is equal to 5% of sales. Lamont will provide any other…[EXCEL] Payback: Northern Specialties just purchased inventory-management computer software at a cost of $1,645,276. Cost savings from the investment over the next six years will produce the following cash flow stream: $212,455, $292,333, $387,479, $516,345, $645,766, and $618,325. What is the payback period on this investment? please use excel