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Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Cisco Systems’ sales, net operating profit...
Projecting NOPAT and NOA Using Parsimonious Forecasting Method
Following are Cisco Systems’ sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its year ended July 31, 2016 ($ millions).
| Sales | $49,247 | |||
| Net operating profit after tax (NOPAT) | 10,575 | |||
| Net operating assets (NOA) | 26,472 |
Use the parsimonious method to forecast Cisco’s sales, NOPAT, and NOA for years 2017 through 2020 using the following assumptions.
| Sales growth per year | 1.0% |
for 2017 and |
|||||
| 2.0% |
thereafter |
||||||
| Net operating profit margin (NOPM) | 21.5% | ||||||
| Net operating asset turnover (NOAT), based on NOA at July 31, 2016 | 1.86 |
Rounding instructions:
Round total revenue "unrounded" to two decimal places.
Round total revenue "rounded", NOPAT and NOA answers to the nearest whole number.
For NOPAT and NOA computations, use total revenue "rounded".
|
$ millions |
2017 Est | 2018 Est. | 2019 Est. | 2020 Est. | ||
|---|---|---|---|---|---|---|
| Total revenue (unrounded) | $Answer | $Answer | $Answer | $Answer | ||
| Total revenue (rounded) | Answer | Answer | Answer | Answer | ||
| NOPAT | Answer | Answer | Answer | Answer | ||
| NOA | Answer | Answer | Answer | Answer |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA)...
Following are forecasts of sales, net operating profit after tax
(NOPAT), and net operating assets (NOA) as of February 26, 2011,
for Best Buy, Inc. Refer to the information in the table to answer
the following requirements.
Assume Reported
Horizon Period
(In millions)
2011
2012
2013
2014
2015
Terminal Period
Sales
$40,023
$44,577
$49,650
$55,300
$61,592
$62,208
NOPAT
1,448
1,637
1,808
2,014
2,224
2,257
NOA
5,287
5,893
6,539
7,282
8,140
8,193
Answer the following requirements assuming a discount rate (WACC)...
SALES - 49247; NOPAT - 10382.8 ; NOA- 26472 BALANCE SHEET - NCI = (1) If...
SALES - 49247; NOPAT - 10382.8 ; NOA- 26472
BALANCE SHEET - NCI = (1)
If Cisco’s top management were optimistic about CISCO’s market
growth opportunities and revised their sales growth rates up by 2%,
please forecast Cisco's sales, NOPAT, and NOA for years 2017
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assumptions:
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Compute and interpret the net-operating profit after tax (NOPAT) of the company for 2018 and 201
Balance sheet
Items
2019
2018
Cash
8,313
11,604
Marketable securities
696
618
Account receivables
23,795
30,563
Inventory
1,619
1,682
Prepaid expenses
3,997
4,678
Net Fixed Assets
96,457
68,764
Investment in AB Co. stocks
17,309
5,473
Account payables
24,600
21,372
Wages and salaries payable
13,101
16,855
Bond payable (10 yrs.)
54,102
35,605
Notes payable (3 yrs.)
39,398
32,621
Total shareholders’ Equity Capital
20,985
16,929
B. Income statement
Items
2019
2018
Revenues
77,147
79,591
Cost of goods sold
40,659
42,655
Salaries...
Find Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period...
Find Forecast Cisco's sales, NOPAT, and NOA for years 2017
through 2020 and the terminal period using the following
assumptions:
Sales for 2016- $ 49247
Nopat 2016 - $ 10382.8
NOA 2016- $ 26476.88
Sales growth 2017 2% , Sales growth 2018-2020 3% , Terminal
growth 1% [Net operating profit margin 2016 rate rounded to three
decimal places Net operating asset turnover 2016 rate rounded to
three decimal places]
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Estimating Share Value Using the DCF
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Following are forecasts of sales, net operating profit after tax
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Wal-Mart Stores, Inc.
Reported
Horizon Period
$ millions
2016
2017
2018
2019
2020
Terminal
Period
Sales
$482,130
$486,951
$491,821
$496,739
$501,706
$506,723
NOPAT
16,634
17,043
17,214
17,386
17,560
17,735
NOA
124,940
126,186
127,448
128,722
130,009
131,309
Answer the following requirements assuming a discount rate (WACC)
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Following are forecasts of sales, net operating profit after tax
(NOPAT), and net operating assets (NOA) as of February 26, 2011,
for Best Buy, Inc.
Assume
Reported
Horizon Period
(In millions)
2011
2012
2013
2014
2015
Terminal Period
Sales
$50,272
$52,786
$55,425
$58,196
$61,106
$61,717
NOPAT
1,389
1,584
1,663
1,746
1,833
1,852
NOA
7,876
8,248
8,660
9,093
9,548
9,643
Answer the following requirements assuming a discount rate (WACC)
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Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after...
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Following are forecasts of sales, net operating profit after tax
(NOPAT), and net operating assets (NOA) as of February 26, 2011,
for Best Buy, Inc.
Assume
Reported
Horizon Period
(In millions)
2011
2012
2013
2014
2015
Terminal Period
Sales
$50,272
$52,786
$55,425
$58,196
$61,106
$61,717
NOPAT
1,389
1,584
1,663
1,746
1,833
1,852
NOA
7,876
8,248
8,660
9,093
9,548
9,643
Answer the following requirements assuming a discount rate (WACC)
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Cisco Systems has total assets of $35.841 billion, total debt of $9.112 billion, and net sales...
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3 decimal places, e.g. 25.335. Round EBIT ROA, ROA and ROE to 1
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Net income
$
billion
EBIT ROA
%
ROA
%...
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A.
$44K
B.
$20K
C.
$41K
D.
$61K
E.
$20K
Last year, Ashley Inc. had a NOPAT of $700 and total net operating capital TNOC of...
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$900 and total net operating capital TNOC of $2200. What is the
free cash flow for this year?
a) $300
b) $600
c) $400
d) $500
e) $700
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