Exam 2 Key-s15 Version 1

Gabriel Enterprises Forecasted Income Statement

($ millions)
2011
2012
Revenue
$
45,015 $
49,694 $
Cost of goods sold
34,017
37,534
Restructuring charges - cost of goods sold
Gross profit
10,998
12,160
Selling, general, and administrative
8,984
9,873
Other operating expenses
78
52
Operating income
1,936
2,235
Investment income and other
35
54
Interest expense
(94)
(94)
Earnings before taxes
1,877
2,195
Income tax expense
674
802
Net income
$
1,203 $
1,393 $

2013
50,372
37,611
24
12,737
10,325
198
2,214
51
(87)
2,178
714
1,464

Gabriel Enterprises Forecasted Balance Sheet

($ millions)
Cash and equivalents
Short term investments
Receivables
Merchandise inventories
Other current assets
Total current assets
Property and equipment, at cost
Less accumulated depreciation
Property and equipment, net
Goodwill
Intangible assets, net of amortization
Other long term investments
Other assets
Total assets
Current liabilities:
Accounts payable
Accrued compensation and other related expenses
Accrued liabilities
Accrued income taxes
Deferred revenue
Short term debt
Current portion of long term debt
Total current liabilities
Long-term liabilities:
Long-term debt
Other liabilities
Total liabilities
Shareholders equity:
Common stock
Paid-in capital
Retained earnings
Accumulated other comprehensive loss, net of tax
Total stockholders' equity
Total liabilities and stockholders equity

2012
$

$
$

2014 Est.

2013

1,826
90
2,020
5,486
1,144
10,566
7,453
(3,383)
4,070
2,452
438
324
452
18,302

5,276
574
1,936
316
622
663
35
9,422

1,103 $ 1,152.5
22
28.7
2,348
2,462.2
5,897
6,129.3
1,103
1,204.9
10,473
10,977.6
7,905
8,690.8
(4,082)
(5,030.6)
3,823
3,660.2
2,454
2,454.0
336
311.0
328
328.0
435
471.5
17,849 $ 18,202.2
4,870 $
570
2,037
256
474
557
441
9,205

5,081.5
576.3
1,519.2
261.9
454.0
557.0
37.0
8,486.9

1,104
1,456
11,982

859
1,183
11,247

822.0
1,183.0
10,491.9

42
441
5,797
40
6,320
18,302

39
18
6,372
173
6,602
17,849

39.0
18.0
7,480.3
173.0
7,710.3
$ 18,202.2

2014 Est.
52,386.9
39,290.2
13,096.7
10,739.3
198.0
2,159.4
55.0
(87.0)
2,127.4
765.9
1,361.5

Exam 2 Key-s15 Version 1

Gabriel Enterprises Forecasted Statement of Cash Flows

($000s)
Net income
Add: depreciation
Add: amortization
Accounts receivable
Merchandise inventories
Other current assets
Other assets
Accounts payable
Accrued compensation and other related expenses
Accrued liabilities
Accrued income taxes
Deferred revenue
Net cash from operating activities

2012 Est.
1,362
949
25
(114)
(232)
(102)
(36)
212
6
(518)
6
(20)
1,536

Capital expenditures (PPE)

Decrease in marketable securities
Net cash from investing activities

(786)
(7)
(793)

Dividends
Payment of long term debt
Net cash from financing activities

(253)
(441)
(694)

Net change in cash

Beginning cash
Ending cash

50
1,103
1,153

Exam 2 Key-s15 Version 1

Forecast assumptions
Growth in revenue
Cost of goods sold/Revenue
Restructuring charges - cost of goods sold
Selling, general, and administrative/Revenue
Other operating expenses
Investment income and other
Interest expense
Income tax expense
Cash and equivalents/Revenue
Marketable securities
Receivables/Revenue
Merchandise inventories/Revenues
Other current assets/Revenues
Growth in property and equipment, at cost/Revenue
Goodwill
Amortization of intangible assets
Other long term investments
Other assets/Revenue
Accounts payable/Revenue
Accrued compensation and other related expenses/Revenue
Accrued liabilities/Revenue
Accrued income taxes/Revenue
Deferred revenue
Short term debt
Current portion of long term debt
Other liabilities
Depreciation/Prior year PPE at cost
Dividends (% Net income)

4.0%
75.0%
$0
20.5%
no change
$
55
(87)
36.0%
2.2%
PLUG
4.7%
11.7%
2.3%
1.5%
no change
$
25
no change
0.9%
9.7%
1.1%
2.9%
0.5%
454
no change
$
37
no change
12%
18.6%