Scribd Logo
Upload

Welcome to Scribd!

  • 510 views

    Case 25 Gainesboro-Exh8

    Uploaded by

    odie99
    This document projects the sources and uses of funds for Gainesboro Machine Tools Corp. from 2005 to 2011. It assumes an annual sales growth rate of 15% and net income as a percentage of sales ranging from 2.1% to 8%. The projections show total sales of $9.6 billion over this period. Sources of funds include net income and depreciation totaling $789.8 million. Uses include capital expenditures, increases in working capital, and dividends totaling $885 million. After paying dividends, the company is projected to need additional borrowing of $95.1 million by the end of the period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Case 25 Gainesboro-Exh8

    Uploaded by

    odie99
    510 views1 page
    This document projects the sources and uses of funds for Gainesboro Machine Tools Corp. from 2005 to 2011. It assumes an annual sales growth rate of 15% and net income as a percentage of sales ranging from 2.1% to 8%. The projections show total sales of $9.6 billion over this period. Sources of funds include net income and depreciation totaling $789.8 million. Uses include capital expenditures, increases in working capital, and dividends totaling $885 million. After paying dividends, the company is projected to need additional borrowing of $95.1 million by the end of the period.

    Original Description:

    Gainesboro Exh.8

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document projects the sources and uses of funds for Gainesboro Machine Tools Corp. from 2005 to 2011. It assumes an annual sales growth rate of 15% and net income as a percentage of sales ranging from 2.1% to 8%. The projections show total sales of $9.6 billion over this period. Sources of funds include net income and depreciation totaling $789.8 million. Uses include capital expenditures, increases in working capital, and dividends totaling $885 million. After paying dividends, the company is projected to need additional borrowing of $95.1 million by the end of the period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    510 views1 page

    Case 25 Gainesboro-Exh8

    Uploaded by

    odie99
    This document projects the sources and uses of funds for Gainesboro Machine Tools Corp. from 2005 to 2011. It assumes an annual sales growth rate of 15% and net income as a percentage of sales ranging from 2.1% to 8%. The projections show total sales of $9.6 billion over this period. Sources of funds include net income and depreciation totaling $789.8 million. Uses include capital expenditures, increases in working capital, and dividends totaling $885 million. After paying dividends, the company is projected to need additional borrowing of $95.1 million by the end of the period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Exhibit 8

    GAINESBORO MACHINE TOOLS CORP.


    Projected Sources and Uses Statement (in millions of dollars)
    Assumptions:
    1. Sales Growth Rate:
    2. Net Income as % of Sales
    3. Dividend Payout Ratio

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    15%
    2.1%
    40.0%

    15%
    4.0%
    40.0%

    15%
    5.0%
    40.0%

    15%
    5.5%
    40.0%

    15%
    6.0%
    40.0%

    15%
    5.6%
    40.0%

    15%
    8.0%
    40.0%

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    Projections

    Total
    2005-11

    Sales

    870.1

    1,000.7

    1,150.8

    1,323.4

    1,521.9

    1,750.1

    2,012.7

    9,629.6

    Sources:
    Net income
    Depreciation
    Total

    $
    $
    $

    18.1
    22.5
    40.6

    $
    $
    $

    40.0
    25.5
    65.5

    $
    $
    $

    57.5
    30.0
    87.5

    $
    $
    $

    72.8
    34.5
    107.3

    $
    $
    $

    91.3
    40.5
    131.8

    $
    $
    $

    98.0
    46.5
    144.5

    $
    $
    $

    160.0
    52.5
    212.5

    $
    $
    $

    537.8
    252.0
    789.8

    Uses:
    Capital expend.
    Change in Working capital
    Total

    $
    $
    $

    43.8
    19.5
    63.3

    $
    $
    $

    50.4
    22.4
    72.8

    $
    $
    $

    57.5
    25.8
    83.3

    $
    $
    $

    66.2
    29.6
    95.8

    $
    $
    $

    68.5
    34.0
    102.4

    $
    $
    $

    78.8
    38.5
    117.3

    $
    $
    $

    90.6
    44.3
    134.9

    $
    $
    $

    455.7
    214.1
    669.8

    Excess cash/(Borrowing needs)


    Dividend

    $
    $

    (22.7) $
    7.2 $

    (7.3) $
    16.0 $

    4.2
    23.0

    $
    $

    11.5
    29.1

    $
    $

    29.4
    36.5

    $
    $

    27.2
    39.2

    $
    $

    77.6
    64.0

    $
    $

    120.0
    215.1

    After dividend
    Excess cash/(Borrowing needs)

    (29.9) $

    (23.3) $

    (12.0) $

    13.6

    (95.1)

    *Ignoring the effects of borrowings on interest and amortization.

    (18.8) $

    (17.6) $

    (7.2) $

    You might also like