Percent of Sales Forecasting Flashcards
1
Q
New RE
A
Old RE + Net Income - Dividends
2
Q
New RE
A
Old RE + [Projected Sales x Net Margin x (1 - Payout Ratio)]
3
Q
Net Margin
A
Net Income/Sales
4
Q
Payout Ratio
A
1 - Plowback Ratio
5
Q
Plowback Ratio
A
1 - Payout Ratio
6
Q
Payout Ratio
A
Dividends/Net Income
7
Q
Plowback Ratio
A
∆Retained Earnings/Net Income
8
Q
External Financing Needed (EFN)
A
Discretionary Financing Needed (DFN)
9
Q
External Financing Needed (EFN)
A
Projected Total Assets - Projected Total Liabilities - Projected Owners’ Equity
