Cumberland Industries

Topic: Cumberland Industries
Paper instructions:
Assignment #1 – Cumberland Industries
Chapter 14 – Financial Planning & Forecasting Pro Forma Financial Statements

Cumberland Industries’ financial planners must forecast the company’s financial results for the coming year. The forecast for many items will be based on sales, and any additional funds needed will be obtained as notes payable.

a. Assuming the historical trend continues, what will sales be in 2008? Base your forecast on a spreadsheet regression analysis of the 2002-2007 sales data above, and include the summary output of the regression in your answer. By what percentage are sales predicted to increase in 2008 over 2007? Is the sales growth rate increasing or decreasing?

Here are the company’s historical sales. Hint: Use the Trend function to forecast sales for 2008.

Year Sales Growth Rate
2002 129,215,000
2003 180,901,000
2004 235,252,000
2005 294,065,000
2006 396,692,000
2007 455,150,000
2008

=TREND(C17:C22,B17:B22,B23)

% Increase in Predicted Sales for 2008 over 2007:

2007 Sales 455,150,000
2008 Sales

% increase Note: This growth rate has been declining over time.

b. Cumberland’s management believes that the firm will actually experience a 20 percent increase in sales during 2008. Construct 2008 pro forma financial statements. Cumberland will not issue any new stock or long-term bonds. Assume Cumberland will carry forward its current amounts of short-term investments and notes payable, prior to calculating AFN. Assume that any Additional Funds Needed (AFN) will be raised as notes payable (if AFN is negative, Cumberland will purchase additional short-term investments). Use an interest rate of 9 percent for short-term debt (and for the interest income on short-term investments) and a rate of 11 percent for long-term debt. No interest is earned on cash. Use the beginning of year debt balances to calculate net interest expense. Assume that dividends grow at an 8 percent rate.

Used in the
Key Input Data: forecast

Tax rate 40%
Dividend growth rate 8%
S-T rd 9%
L-T rd 11%

December 31 Income Statements:
(in thousands of dollars) Forecasting 2007 2008 2008
2007 basis Ratios Inputs Forecast
Sales $455,150 Growth
Expenses (excluding depr. & amort.) $386,878 % of sales
EBITDA $68,273
Depreciation and Amortization $7,388 % of fixed assets
EBIT $60,885
Net Interest Expense $8,575 Interest rate x beginning of year debt
EBT $52,310
Taxes (40%) $20,924
Net Income $31,386
Common dividends $12,554 Growth
Addition to retained earnings (DRE) $18,832

Cumberland Industries December 31 Balance Sheets
(in thousands of dollars)
Forecasting 2007 2008 2008
2007 basis Ratios Inputs Without AFN AFN With AFN
Assets:
Cash and cash equivalents $91,450 % of sales
Short-term investments $11,400 Previous
Accounts Receivable $103,365 % of sales
Inventories $38,444 % of sales
Total current assets $244,659
Fixed assets $67,165 % of sales
Total assets $311,824

Liabilities and equity
Accounts payable $30,761 % of sales
Accruals $30,477 % of sales
Notes payable $16,717 Previous
Total current liabilities $77,955
Long-term debt $76,264 Previous
Total liabilities $154,219
Common stock $100,000 Previous
Retained Earnings $57,605 Previous + DRE
Total common equity $157,605
Total liabilities and equity $311,824

Required assets =
Specified sources of financing =
Additional funds needed (AFN) =

Required additional notes payable =
Additional short-term investments =

c. Now create a graph depicting the sensitivity of AFN for the coming year to the sales growth rate. To make this graph, compare the AFN at sales growth rates of 5%, 10%, 15%, 20%, 25%, and 30%.

We can use a data table to answer this question:
Sales 2008 AFN
Growth rate $0

d. Calculate the Net Operating Working Capital (NOWC), Total Operating Capital, and NOPAT for 2007 and 2008. Also, calculate the FCF for 2008.

Net Operating Working Capital

NOWC07 = Operating CA – Operating CL
= –
=

NOWC08 = Operating CA – Operating CL
= –
=

Total Operating Capital

TOC07 = NOWC + Fixed assets
= +
=

TOC08 = NOWC + Fixed assets
= +
=

Net Operating Profit After Taxes

NOPAT07 = EBIT x ( 1 – T )
= x
=

NOPAT08 = EBIT x ( 1 – T )
= x
=

Free Cash Flow

FCF08 = NOPAT – Increase in TOC
= –
=

e. Suppose Cumberland can reduce its inventory to sales ratio to 5 percent and its cost to sales ratio to 83 percent. What happens to AFN and FCF?

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Write a Business Plan Executive Summary for an innovative technology business Idea.
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Paper instructions:
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Topic: western civilization
Paper instructions:
This exam consists of two essay questions. Please write at least 900 words in response to each question.

Use quotation marks and footnotes for any direct quotations from the Chambers text or other assigned readings. You should also use footnotes in cases where you draw substantially upon the wording, organization, or ideas of the texts. In constructing your essays, you will be expected to conform to standard formal writing guidelines: well developed thesis and introductory paragraph; clear and concise body paragraphs with topic sentences; use of evidence from the course materials to support your thesis; and a conclusion that summarizes the main points of your essay.

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References
“English Bill of Rights” (http://www.fordham.edu/halsall/mod/1689billofrights.asp); “Domat on Louis XIV” (http://www.fordham.edu/halsall/mod/1687domat.asp); “St. Simon on Louis XIV” (http://www.fordham.edu/halsall/mod/17stsimon.asp); “Smith-The Wealth of Nations” (public.wsu.edu/~brians/world_civ/worldcivreader/world_civ_reader_2/adam_smith.html); “The Division of Poland” (http://www.fordham.edu/halsall/mod/1795Poland-division.asp).
“The Social Contract” by Rousseau (http://www.fordham.edu/halsall/mod/rousseau-soccon.asp); and “On Crimes and Punishments” by Beccaria (http://www.fordham.edu/halsall/mod/18beccaria.asp) “John Wilkes on Parliamentary Reform” (http://www.spartacus.schoolnet.co.uk/PRwilkes.htm); “Burke on American Reconciliation” (http://odur.let.rug.nl/~usa/D/1751-1775/libertydebate/burk.htm); “Jefferson on Religious Freedom, 1779” (http://odur.let.rug.nl/~usa/P/tj3/writings/draft1779.htm); “What is the Third Estate” by Abbe Sieyes (http://www.fordham.edu/halsall/mod/sieyes.asp); “Declaration of Rts of Man and Citizen” (http://avalon.law.yale.edu/18th_century/rightsof.asp); “De Gouges on Women’s Rights” (http://www.fordham.edu/halsall/mod/1791degouge1.asp); “Levee-en-Masse, 1793” (http://www.fordham.edu/halsall/mod/1793levee.asp); “Robespierre – The Cult of the Supreme Being” (http://www.fordham.edu/halsall/mod/robespierre-supreme.asp); “Robespierre – Justification of the Use of Terror” (http://www.fordham.edu/halsall/mod/robespierre-terror.asp).
“Imperial Catechism” by Napoleon (http://www.fordham.edu/halsall/mod/1806catechism-napoleon.asp); “Radcliffe, Powerloom Weaving” (http://www.fordham.edu/halsall/mod/1828looms.asp); “Women Miners” (http://www.fordham.edu/halsall/mod/1842womenminers.asp); “Child Labor, 1832, Pt. 1” (http://www.spartacus.schoolnet.co.uk/IRsadler.htm); “Child Labor, 1832, Pt. 2” (http://www.spartacus.schoolnet.co.uk/IRcarpenter.htm); “Child Labor, 1832, Pt. 3” (http://www.spartacus.schoolnet.co.uk/IRblincoe.htm); “Political Confession, 1820” by Metternich (http://www.fordham.edu/halsall/mod/1820metternich.asp); “Ricardo on Wages” (http://www.fordham.edu/halsall/mod/ricardo-wages.asp); “On Liberty” by J.S. Mill, 1859 (http://public.wsu.edu/~brians/world_civ/worldcivreader/world_civ_reader_2/mill.html); “Owenite Socialism” (http://www.spartacus.schoolnet.co.uk/IRowen.htm); “Fourier’s Socialism” (http://www.fordham.edu/halsall/mod/1820fourier.asp); “St. Simon, The Failure of European Liberalism” (http://web.archive.org/web/20010203121700/http://www.warwick.ac.uk/fac/arts/History/teaching/sem10/simon3.html).
“Marx and Engels, ‘Communist Manifesto’” (http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm); “Kropotkin, ‘The Spirit of Revolt’” (http://dwardmac.pitzer.edu/Anarchist_Archives/kropotkin/spiritofrevolt.html); “Mazzini on Nationality” (http://www.fordham.edu/halsall/mod/1852mazzini.asp); “German Unification” (http://www.fordham.edu/halsall/mod/germanunification.asp); “Darwin, ‘The Origin of Species'” (http://public.wsu.edu/~brians/world_civ/worldcivreader/world_civ_reader_2/darwin.html); “Wilberforce’s Critique of Darwin” (http://www.fordham.edu/halsall/mod/1860wilberforce-darwin.asp); “Webb, Fabian Socialism” (http://www.fordham.edu/halsall/mod/1889webb.asp); “Eduard Bernstein on Evolutionary Socialism” (http://www.fordham.edu/halsall/mod/bernstein-revsoc.asp).
“Ferry on French Colonialism” (http://www.fordham.edu/halsall/mod/1884ferry.asp); “Kipling, ‘The White Man’s Burden'” (http://www.fordham.edu/halsall/mod/Kipling.asp); “Austro-Hungarian Ultimatum to Serbia, July 1914” (http://wwi.lib.byu.edu/index.php/The_Austro-Hungarian_Ultimatum_to_Serbia_%28English_translation%29); “Lost Poets of WWI” (http://www.english.emory.edu/LostPoets/); “Wilson, ‘The Fourteen Points'” (http://www.fordham.edu/halsall/mod/1918wilson.asp); and “The Versailles Treaty” (http://www.fordham.edu/halsall/mod/1919versailles.asp).
“Freud, ‘The Interpretation of Dreams” (http://public.wsu.edu/~brians/world_civ/worldcivreader/world_civ_reader_2/freud.html); “Lenin, ‘What is to be Done?'” (http://www.fordham.edu/halsall/mod/1902lenin.asp); “Hitler’s First Antisemitic Writing” (http://www.h-net.org/~german/gtext/kaiserreich/hitler2.html); “Stalin’s Reply to Churchill, 1946” (http://www.fordham.edu/halsall/mod/1946stalin.asp); “The Marshall Plan (1947)” (http://www.fordham.edu/halsall/mod/1947marshallplan1.asp); “De Gaulle, ‘Le Grand Non!'” (http://www.fordham.edu/halsall/mod/1967-degaulle-non-uk.asp); “Khrushchev, ‘Secret Speech’ (1956)” (http://www.fordham.edu/halsall/mod/krushchev-secret.asp); and “Brezhnev Doctrine, 1968” (http://www.fordham.edu/halsall/mod/1968brezhnev.asp).

 

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Paper instructions:
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This is short course overview: User centered design and usability evaluation approaches for designing interactive computer-based systems: understanding the requirements and needs of the user, designing alternative systems through prototyping, and evaluating system usability.
Will you be able to help me with this assignment and if you will be available online on Tuesday at 12:30 p.m EST time?
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Topic: MANAGING INNOVATION ASSIGNMENT
Paper instructions:
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QUESTION 1
QUESTION 1( WEEK 11 VIDEO(s) Useful Viewing
VIDEO: – On demand Packaging – What is on demand packaging – you tube.
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100 WORDS PLUS REFERENCES.

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300 words plus references.
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