HW20

CORPORATE FINANCIAL PLANNING
Cutting Edge B2B Inc.

Financial Plan
Key Assumptions
Sales Growth Rate
Tax Rate
Int Rate on Short-Term Debt
Int Rate on Long-Term Debt
Dividend Payout Rate
Price / Earnings
An Integrated System
2003
2004
2005
2006
2007
2008
2009
Ave Hist.
Actual
Actual
Actual
Actual
Forecast
Forecast
Forecast
% of Sales
16.0%
40.0%
7.0%
8.2%
35.0%
29.4
13.0%
40.0%
6.9%
8.1%
35.0%
29.4
11.0%
40.0%
6.8%
8.0%
35.0%
29.4
42.1%
6.5%
7.7%
33.9%
28.8
26.3%
43.5%
6.7%
7.9%
35.0%
29.3
24.3%
42.1%
6.9%
8.1%
35.0%
29.0
19.8%
37.9%
7.1%
8.3%
35.0%
29.0
Income Statement (Mil.$)

Sales
Cost of Goods Sold
Gross Margin
$73.84
$41.83
$32.01
$93.28
$58.39
$34.89
$115.93
$75.49
$40.44
$138.84
$89.83
$49.01
$161.05
$100.28
$60.77
$181.99
$113.32
$68.67
$202.01
$125.78
$76.23
Selling, Gen & Adm Expenses

Depreciation
EBIT
$6.58
$5.91
$19.52
$7.28
$6.37
$21.24
$8.56
$7.31
$24.57
$10.21
$9.86
$28.94
$12.66
$11.37
$36.74
$14.31
$12.85
$41.51
$15.88
$14.26
$46.08
No. 4
Finance 305, FALL 2012
HW 20
Page 1

Financial Plan
Interest Expense
Taxes
Net Income
Shares Outstanding (Millions)
Earnings Per Share
Allocation of Net Income:
Dividends
Change in Equity
2003
2004
2005
2006
2007
2008
2009
Actual
$4.76
$6.21
$8.55
39.60
$0.22
Actual
$5.23
$6.96
$9.05
40.36
$0.22
Actual
$6.69
$7.52
$10.36
44.93
$0.23
Actual
Forecast Forecast Forecast % of Sales
$8.88
$11.37
$12.34
$13.62
$7.60
$10.15
$11.67
$12.98
$12.46
$15.22
$17.51
$19.48
53.91
59.87
65.22
69.02
$0.23
$0.25
$0.27
$0.28
$2.90
$5.65
$3.17
$5.88
$3.63
$6.73
$4.36
$8.10
$5.33
$9.89
$6.13
$11.38
$6.82
$12.66
$4.27
$20.58
$26.73
$51.58
$6.38
$24.39
$30.45
$61.22
$7.62
$28.77
$36.75
$73.14
$8.83
$34.11
$43.27
$86.21
$10.29
$41.63
$53.03
$104.95
$11.63
$47.05
$59.92
$118.60
$12.91
$52.22
$66.52
$131.65
$331.64
$98.72
$232.92
$423.92
$105.09
$318.83
$503.87
$112.40
$391.47
$613.28
$122.26
$491.02
$676.62
$133.63
$542.98
$760.05
$146.48
$613.57
$841.81
$160.74
$681.07
Balance Sheet (Mil.$)

Assets
Current Assets
Cash & Equivalents
Receivables
Inventories
Total Current Assets
Property, Plant & Equip. (PPE)
Accumulated Depreciation
Net PPE
Ave Hist.
No. 4
HW 20
Page 2

Financial Plan
2003
2004
2005
2006
2007
2008
2009
Ave Hist.
Actual
$284.50
Actual
$380.05
Actual
$464.61
Actual
$577.23
Forecast
$647.93
Forecast
$732.17
Forecast
$812.72
% of Sales
Liabilities and Shareholders' Equity

Current Liabilities
Accounts Payable
$31.83
Short-term Debt
$30.86
Total Current Liabilities
$62.69
$63.43
$43.03
$106.46
$83.84
$64.85
$148.69
$94.41
$79.49
$173.90
$101.23
$80.98
$182.21
$114.39
$91.50
$205.90
$126.98
$101.57
$228.54
Long-term Debt
Total Liabilities
$40.00
$102.69
$45.90
$152.36
$51.50
$200.19
$70.81
$244.71
$83.32
$266.53
$92.48
$298.38
$107.71
$336.26
Shareholders' Equity
Paid-in Capital
Retained Earnings
Total Shareholders' Equity
$90.00
$91.81
$181.81
$130.00
$97.69
$227.69
$160.00
$104.42
$264.42
$220.00
$112.52
$332.52
$260.00
$112.41
$362.14
$300.00
$133.79
$433.79
$330.00
$146.45
$476.45
Total Liab. & Share. Equity
$284.50
$380.05
$464.61
$577.23
$647.94
$732.17
$812.71
Total Assets
Debt / (Debt + Equity)

Market Price / Share
External Funds Needed
28.0%
$6.21
28.1%
$6.57
$58.07
30.6%
$6.68
$57.42
31.1%
$6.71
$93.95
30.1%
$7.47
$53.99
29.8%
$7.89
$59.69
30.5%
$8.30
$55.30
No. 4
HW 20
Page 3

Financial Plan
2003
2004
2005
2006
2007
2008
2009
Ave Hist.
Actual
Actual
Actual
Actual
Forecast
Forecast
Forecast
% of Sales
100.0%
56.6%
43.4%
100.0%
62.6%
37.4%
100.0%
65.1%
34.9%
100.0%
64.7%
35.3%
100.0%
62.3%
37.7%
100.0%
62.3%
37.7%
100.0%
62.3%
37.7%
100.0%
62.3%
37.7%

Depreciation
EBIT
8.9%
8.0%
26.4%
7.8%
6.8%
22.8%
7.4%
6.3%
21.2%
7.4%
7.1%
20.8%
7.9%
7.1%
22.8%
7.9%
7.1%
22.8%
7.9%
7.1%
22.8%
7.9%
7.1%
22.8%
Interest Expense
Taxes
Net Income
Earnings Per Share
6.4%
8.4%
11.6%
53.6%
0.3%
5.6%
7.5%
9.7%
43.3%
0.2%
5.8%
6.5%
8.9%
38.8%
0.2%
6.4%
5.5%
9.0%
38.8%
0.2%
7.1%
6.3%
9.5%
37.2%
0.2%
6.8%
6.4%
9.6%
35.8%
0.1%
6.7%
6.4%
9.6%
34.2%
0.1%
6.1%
7.0%
9.8%
43.6%
0.2%
3.9%
7.7%
3.4%
6.3%
3.1%
5.8%
3.1%
5.8%
3.3%
6.1%
3.4%
6.3%
3.4%
6.3%
3.4%
6.4%
5.8%
27.9%
36.2%
69.9%
6.8%
26.1%
32.6%
65.6%
6.6%
24.8%
31.7%
63.1%
6.4%
24.6%
31.2%
62.1%
6.4%
25.9%
32.9%
65.2%
6.4%
25.9%
32.9%
65.2%
6.4%
25.9%
32.9%
65.2%
6.4%
25.9%
32.9%
65.2%

Accum Depreciation
Net PPE
449.1%
133.7%
315.4%
454.5%
112.7%
341.8%
434.6%
97.0%
337.7%
441.7%
88.1%
353.7%
420.1%
83.0%
337.1%
417.6%
80.5%
337.1%
416.6%
79.6%
337.1%
445.0%
107.8%
337.1%
Total Assets
385.3%
407.4%
400.8%
415.8%
402.3%
402.3%
402.3%
402.3%

Current Liabilities
Accounts Payable
43.1%
68.0%
72.3%
68.0%
62.9%
62.9%
62.9%
62.9%
Income Statement (% of Sales)

Sales
Cost of Goods Sold
Gross Margin

Dividends
Change in Equity
Balance Sheet (% of Sales)

Assets
Current Assets
Cash & Equivalents
Receivables
Inventories
No. 4
HW 20
Page 4

Financial Plan
2003
2004
2005
2006
2007
2008
2009
Short-term Debt
Actual
41.8%
84.9%
Actual
46.1%
114.1%
Actual
55.9%
128.3%
Actual
57.3%
50.3%
50.3%
50.3%
50.3%
125.3%
113.1%
113.1%
113.1%
113.1%
Long-term Debt
Total Liabilities
54.2%
139.1%
49.2%
163.3%
44.4%
172.7%
51.0%
176.3%
51.7%
164.9%
50.8%
164.0%
53.3%
166.5%
49.7%
162.8%
Paid-in Capital
Retained Earnings
121.9%
124.3%
246.2%
139.4%
104.7%
244.1%
138.0%
90.1%
228.1%
158.5%
81.0%
239.5%
161.4%
76.0%
237.4%
164.8%
73.5%
238.4%
163.4%
72.5%
235.9%
139.4%
100.0%
239.5%
Total Liabilities and Equity
385.3%
407.4%
400.8%
415.8%
402.3%
402.3%
402.3%
402.3%
Cash Flow From Operating Activities

Net Income
+ Depreciation
- Inc in Accts Receivable
- Inc in Inventories
+ Inc in Accounts Payable
Cash Flow From Operat Act
$9.05
$6.37
($3.81)
($3.72)
$31.60
$39.49
$10.36
$7.31
($4.38)
($6.30)
$20.41
$27.40
$12.46
$9.86
($5.34)
($6.52)
$10.57
$21.03
$15.22
$11.37
($7.52)
($9.76)
$6.82
$16.13
$17.51
$12.85
($5.42)
($6.89)
$13.16
$31.21
$19.48
$14.26
($5.17)
($6.60)
$12.59
$34.56
Cash Flow From Investing Activities

- Invest in Plant and Equip
Cash Flow From Invest Act
($92.28)
($92.28)
($79.95) ($109.41)
($79.95) ($109.41)
($63.34)
($63.34)
($83.43)
($83.43)
($81.76)
($81.76)
Cash Flow Statement (Mil.$)
Ave Hist.
No. 4
HW 20
Page 5

Financial Plan
2003
2004
2005
2006
2007
2008
2009
Ave Hist.
Actual
Cash Flow From Financing Activities
+ Inc in Long-term Debt
+ Inc in Short-term Debt
+ Inc in Paid in Capital
- Dividends Paid
Cash Flow From Financ Act
Actual
Actual
Actual
Forecast
Forecast
Forecast
% of Sales
$5.90
$12.17
$40.00
($3.17)
$54.90
$5.60
$21.82
$30.00
($3.63)
$53.79
$19.31
$14.64
$60.00
($4.36)
$89.59
$12.51
$1.49
$40.00
($5.33)
$48.67
$9.16
$10.52
$40.00
($6.13)
$53.55
$15.23
$10.07
$30.00
($6.82)
$48.48
$2.11
$4.27
$6.38
$1.24
$6.38
$7.62
$1.21
$7.62
$8.83
$1.46
$8.83
$10.29
$1.33
$10.29
$11.62
$1.28
$11.63
$12.91
22.8%
21.2%
20.8%
Change in Cash and Equiv

Cash and Equiv, Begin of Yr
Cash and Equiv, End of Yr
Financial Ratios
Profitability
Return On Sales (ROS)
26.4%
22.8%
22.8%
22.8%
No. 4
HW 20
Page 6

Financial Plan
2003
2004
2005
2006
Actual
Return On Assets (ROA)

Return On Equity (ROE)
Actual
6.4%
4.4%
Actual
5.8%
4.2%
Actual
5.6%
6.0%
6.0%
6.0%
4.2%
4.4%
4.4%
4.3%
Asset Turnover
Receivables Turnover
Inventory Turnover
Asset Turnover
414.9%
204.2%
28.1%
436.2%
224.7%
27.5%
441.6%
224.5%
26.7%
425.3%
208.3%
26.3%
410.4%
200.7%
26.4%
407.0%
199.0%
26.2%
24.9%
410.1%
23.4%
406.1%
25.0%
367.3%
26.0%
325.9%
25.4%
323.1%
25.1%
336.5%
25.8%
338.3%
82.3%
39.6%
57.5%
28.9%
49.2%
24.5%
49.6%
24.7%
57.6%
28.5%
57.6%
28.5%
57.6%
28.5%
28.76
135.3%
29.30
116.5%
28.97
113.5%
29.03
108.8%
29.38
123.5%
29.22
118.6%
29.64
120.2%
Financial Leverage
Debt
Times Interest Earned
Liquidity
Current
Quick
Market Value
Price to Earnings
Market to Book
2007
2008
2009
Ave Hist.
No. 4
HW 20
Page 7

Financial Plan
2003
2004
2005
2006
2007
2008
2009
Ave Hist.
Actual
Actual
Actual
Actual
Forecast
Forecast
Forecast
% of Sales
Data Table: Sensitivity of the External Funds Needed to the 2007 Sales Growth Rate
$53.99
0.0%
($19.44)
24.0%
$90.71
External Funds Needed by the Sales Growth Rate

$100
$80
Output Formula:
Input Values for 2007 Sales Growth Rate

4.0%
8.0%
12.0%
16.0%
20.0%
($1.08)
$17.28
$35.63
$53.99
$72.35
$60
$40
$20
$0
($20)
($40)
0.0%
4.0%
8.0%
12.0%
16.0%
Sales Growth Rate
20.0%
24.0%
No. 4
HW 20
Page 8

Nike, Inc.
Financial Plan
Key Assumptions
Sales Growth Rate
Tax Rate
Price / Earnings
Full-Scale Estimation
5/31/2003 5/31/2004 5/31/2005

Actual
44.7%
1.0%
2.3%
29.1%
62.3
Actual
14.5%
34.8%
2.1%
3.9%
19.0%
39.6
Actual
12.1%
34.9%
3.4%
3.8%
19.5%
35.4
5/31/2006
Actual
8.8%
35.0%
5.1%
5.1%
20.9%
29.5
5/31/2007
Forecast
7.0%
35.0%
4.5%
5.5%
21.0%
30.0
5/31/2008
5/31/2009 Ave. %
Forecast
Forecast
6.0%
35.0%
4.5%
5.5%
22.0%
31.0
5.0%
35.0%
4.5%
5.5%
23.0%
32.0

Sales
Cost of Goods Sold
Gross Margin
Other Expense
Accounting Change, Net
Depreciation
EBIT
$10,697.0 $12,253.1 $13,739.7

$6,072.8
$6,824.0 $7,596.3
$4,624.2
$5,429.1 $6,143.4
$3,137.6
$79.9
$266.1
$240.8
$899.8
$3,702.0
$74.7
$0.0
$177.4
$1,475.0
$14,954.9
$8,190.7
$6,764.2
$16,001.7
$8,901.8
$7,100.0
$16,961.8
$9,435.9
$7,526.0
$17,809.9
$9,907.7
$7,902.3
$4,221.7
$29.1
$0.0
$28.0
$1,864.6
$4,477.8
$4.4
$0.0
$177.2
$2,104.8
$4,809.0
$63.9
$99.5
$203.5
$1,924.0
$5,097.6
$67.8
$105.5
$215.7
$2,039.4
$5,352.5
$71.1
$110.8
$226.5
$2,141.4
Interest Expense, Net

Taxes
Net Income
Earnings Per Share
$42.9
$382.9
$474.0
527.2
$0.90
$25.0
$504.4
$945.6
526.2
$1.80
$4.8
$648.2
$1,211.6
522.2
$2.32
($36.8)
$749.6
$1,392.0
512.0
$2.72
$24.5
$664.8
$1,234.6
512.0
$2.41
$48.3
$696.9
$1,294.3
512.0
$2.53
$55.8
$730.0
$1,355.6
512.0
$2.65

Dividends
Change in Equity
$137.8
$336.2
$179.2
$766.4
$236.7
$974.9
$290.9
$1,101.1
$259.3
$975.4
$284.7
$1,009.5
$311.8
$1,043.8
$634.0
$0.0
$2,101.1
$1,514.9
$163.7
$828.0
$400.8
$2,120.2
$1,633.6
$165.0
$1,388.1
$436.6
$2,262.1
$1,811.1
$110.2
$954.2
$1,348.8
$2,395.9
$2,076.7
$203.3
$1,110.0
$618.8
$2,777.5
$2,182.7
$201.6
$1,260.6
$655.9
$2,944.2
$2,313.7
$213.7
$1,415.4
$688.7
$3,091.4
$2,429.4
$224.3

Assets
Current Assets
Cash & Equivalents
Short-term Investments
Receivables
Inventories
Deferred Income Taxes
of Sales
No. 12
Finance 305; FALL 2012
HW 24
Page 9

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005
5/31/2006
Prepaid Expenses
Actual
$266.2
$4,679.9
Actual
$364.4
$5,512.0
Actual
$343.0
$6,351.1
Actual
$380.1
$7,359.0
Property, Plant & Equip., Net

Intangible Assets, Net
Goodwill
Deferred Inc. Taxes & Other
Total Assets
$1,620.8
$118.2
$65.6
$229.4
$6,713.9
$1,586.9
$366.3
$135.4
$291.0
$7,891.6
$1,605.8
$406.1
$135.4
$295.2
$8,793.6

Current Liabilities
Current Portion of L.T. Debt
$205.7
Notes Payable
$75.4
Accounts Payable
$572.7
Accrued Liabilities
$1,054.2
Income Taxes Payable
$107.2
$2,015.2
$6.6
$146.0
$763.8
$974.4
$118.2
$2,009.0
Long-term Debt
Redeemable Preferred Stock
Total Liabilities
$551.6
$156.1
$0.3
$2,723.2
Common Stock Class A
Common Stock Class B
Capital in Excess of Stated
Unearned Stock Compen.
Accum. Other Comp. Loss
Retained Earnings
5/31/2008
5/31/2009 Ave. %
Forecast
$420.1
$7,310.6
Forecast
$445.3
$7,833.3
Forecast of Sales
$467.5
$8,316.7
$1,657.7
$405.5
$130.8
$316.6
$9,869.6
$2,035.2
$390.5
$143.2
$351.4
$10,230.9
$2,157.3
$413.9
$151.7
$372.5
$10,928.8
$2,265.2
$434.6
$159.3
$391.2
$11,567.0
$6.2
$69.8
$843.9
$984.3
$95.0
$1,999.2
$255.3
$43.4
$952.2
$1,286.9
$85.5
$2,623.3
$149.2
$107.8
$964.0
$1,343.2
$129.2
$2,693.4
$158.1
$114.3
$1,021.8
$1,423.8
$137.0
$2,855.0
$166.0
$120.0
$1,072.9
$1,495.0
$143.8
$2,997.7
$682.4
$418.2
$0.3
$3,109.9
$687.3
$462.6
$0.3
$3,149.4
$410.7
$550.1
$0.3
$3,584.4
$789.2
$476.8
$0.4
$3,959.7
$921.5
$505.4
$0.4
$4,282.2
$371.6
$530.6
$0.4
$3,900.4
$0.2
$2.6
$589.0
($0.6)
($239.7)
$3,639.2
$3,990.7
$0.1
$2.7
$887.8
($5.5)
($86.3)
$3,982.9
$4,781.7
$0.1
$2.7
$1,182.9
($11.4)
$73.4
$4,396.5
$5,644.2
$0.1
$2.7
$1,451.4
($4.1)
$121.7
$4,713.4
$6,285.2
$0.2
$2.6
$650.0
($6.4)
($63.9)
$5,688.8
$6,271.2
$0.2
$2.6
$20.0
($6.8)
($67.7)
$6,698.3
$6,646.6
$0.2
$2.6
$0.0
($7.2)
($71.1)
$7,742.1
$7,666.7
$6,713.9
$7,891.6
$8,793.6
$9,869.6
17.3%
$55.99
14.9%
$71.15
$642.9
11.9%
$82.20
$408.3
10.1%
$80.31
$650.8
5/31/2007
$10,230.9
14.3%
$72.34
($626)
$10,928.8
15.2%
$78.36
($369.5)
$11,567.0
7.9%
$84.73
($456.7)
No. 12
HW 24
Page 10

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005

Actual
Actual
Actual
5/31/2006
Actual
5/31/2007
Forecast
5/31/2008
5/31/2009 Ave. %
Forecast
Forecast
of Sales
Income Statement (% of Sales)

Sales
Cost of Goods Sold
Gross Margin
100.0%
56.8%
43.2%
100.0%
55.7%
44.3%
100.0%
55.3%
44.7%
100.0%
54.8%
45.2%
100.0%
55.6%
44.4%
100.0%
55.6%
44.4%
100.0%
55.6%
44.4%
100.0%
55.6%
44.4%

Other Expense
Accounting Change, Net
Depreciation
EBIT
29.3%
0.7%
2.5%
2.3%
8.4%
30.2%
0.6%
0.0%
1.4%
12.0%
30.7%
0.2%
0.0%
0.2%
13.6%
29.9%
0.0%
0.0%
1.2%
14.1%
30.1%
0.4%
0.6%
1.3%
12.0%
30.1%
0.4%
0.6%
1.3%
12.0%
30.1%
0.4%
0.6%
1.3%
12.0%
30.1%
0.4%
0.6%
1.3%
12.0%
Interest Expense, Net

Taxes
Net Income
Earnings Per Share
0.4%
3.6%
4.4%
4.9%
0.0%
0.2%
4.1%
7.7%
4.3%
0.0%
0.0%
4.7%
8.8%
3.8%
0.0%
-0.2%
5.0%
9.3%
3.4%
0.0%
0.2%
4.2%
7.7%
3.2%
0.0%
0.3%
4.1%
7.6%
3.0%
0.0%
0.3%
4.1%
7.6%
2.9%
0.0%
0.1%
4.4%
7.6%
4.1%
0.0%

Dividends
Change in Equity
0.0%
1.3%
3.1%
0.0%
1.5%
6.3%
0.0%
1.7%
7.1%
0.0%
1.9%
7.4%
0.0%
1.6%
6.1%
0.0%
1.7%
6.0%
0.0%
1.8%
5.9%
0.0%
1.6%
6.0%
5.9%
0.0%
19.6%
14.2%
1.5%
2.5%
43.7%
6.8%
3.3%
17.3%
13.3%
1.3%
3.0%
45.0%
10.1%
3.2%
16.5%
13.2%
0.8%
2.5%
46.2%
6.4%
9.0%
16.0%
13.9%
1.4%
2.5%
49.2%
6.9%
3.9%
17.4%
13.6%
1.3%
2.6%
45.7%
7.4%
3.9%
17.4%
13.6%
1.3%
2.6%
46.2%
7.9%
3.9%
17.4%
13.6%
1.3%
2.6%
46.7%
7.3%
3.9%
17.4%
13.6%
1.3%
2.6%
46.0%
Balance Sheet (% of Sales)

Assets
Current Assets
Cash & Equivalents
Short-term Investments
Receivables
Inventories
Prepaid Expenses
No. 12
HW 24
Page 11

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005
5/31/2006
5/31/2007
5/31/2008
5/31/2009 Ave. %
Forecast of Sales
12.7%
12.7%
2.4%
2.4%
0.9%
0.9%
2.2%
2.2%
64.9%
64.3%
Actual
15.2%
1.1%
0.6%
2.1%
62.8%
Actual
13.0%
3.0%
1.1%
2.4%
64.4%
Actual
11.7%
3.0%
1.0%
2.1%
64.0%
Actual
11.1%
2.7%
0.9%
2.1%
66.0%
Forecast
12.7%
2.4%
0.9%
2.2%
63.9%
Forecast
12.7%
2.4%
0.9%
2.2%
64.4%

Current Liabilities
Current Portion of L.T. Debt
1.9%
Notes Payable
0.7%
Accounts Payable
5.4%
Accrued Liabilities
9.9%
Income Taxes Payable
1.0%
18.8%
0.1%
1.2%
6.2%
8.0%
1.0%
16.4%
0.0%
0.5%
6.1%
7.2%
0.7%
14.6%
1.7%
0.3%
6.4%
8.6%
0.6%
17.5%
0.9%
0.7%
6.0%
8.4%
0.8%
16.8%
0.9%
0.7%
6.0%
8.4%
0.8%
16.8%
0.9%
0.7%
6.0%
8.4%
0.8%
16.8%
0.9%
0.7%
6.0%
8.4%
0.8%
16.8%
Long-term Debt
Redeemable Preferred Stock
Total Liabilities
5.2%
1.5%
0.0%
25.5%
5.6%
3.4%
0.0%
25.4%
5.0%
3.4%
0.0%
22.9%
2.7%
3.7%
0.0%
24.0%
4.9%
3.0%
0.0%
24.7%
5.4%
3.0%
0.0%
25.2%
2.1%
3.0%
0.0%
21.9%
4.6%
3.0%
0.0%
24.4%
Common Stock Class A
Common Stock Class B
Capital in Excess of Stated
Unearned Stock Compen.
Accum. Other Comp. Loss
Retained Earnings
0.0%
0.0%
5.5%
0.0%
-2.2%
34.0%
37.3%
0.0%
0.0%
7.2%
0.0%
-0.7%
32.5%
39.0%
0.0%
0.0%
8.6%
-0.1%
0.5%
32.0%
41.1%
0.0%
0.0%
9.7%
0.0%
0.8%
31.5%
42.0%
0.0%
0.0%
4.1%
0.0%
-0.4%
35.6%
39.2%
0.0%
0.0%
0.1%
0.0%
-0.4%
39.5%
39.2%
0.0%
0.0%
0.0%
0.0%
-0.4%
43.5%
43.0%
0.0%
0.0%
7.8%
0.0%
-0.4%
32.5%
39.9%
62.8%
64.4%
64.0%
66.0%
63.9%
64.4%
64.9%
64.3%
Property, Plant & Equip., Net

Intangible Assets, Net
Goodwill
Total Assets
Cash Flow Statement (Mil.$)

Cash Provided (Used) By Operating Activities
Net Income
$474.0
$945.6
Income Charges (Credits) Not Affecting Cash:
Depreciation
$239.3
$252.1
Cum Effect of Acct Change
$266.1
$0.0
$50.4
$19.0
$1,211.6
$257.2
$0.0
$21.3
$1,392.0
$282.0
$0.0
($26.0)
$1,234.6
$1,294.3
$1,355.6
$322.1
$99.5
$24.3
$341.4
$105.5
$25.8
$358.5
$110.8
$27.0
No. 12
HW 24
Page 12

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005
Actual
Actual
Amortization and other
$23.2
$58.3
Inc Tax Ben Exer Options
$12.5
$47.2
Changes in Certain Working Capital Components:
(Inc) dec in Inventories
($102.8)
($55.9)
(Inc) dec in Accounts Rec.
($136.3)
$82.5
Dec (inc) in Prepd & Ot CA
$60.9
($103.5)
Inc (dec.) in Account Pay,
Accr Liab., & Inc Tax Pay.
$30.1
$269.1
Cash Provided By Operations
$917.4
$1,514.4
Actual
$30.5
$63.1
($103.3)
($93.5)
$71.4
$112.4
$1,570.7
Actual
$8.9
$54.2
($200.3)
($85.1)
($37.2)
5/31/2007
Forecast
$39.0
$53.0
($140.4)
($74.0)
($0.2)
5/31/2008
5/31/2009 Ave. %
Forecast
$41.3
$56.1
Forecast of Sales
$43.4
$58.9
($148.8)
($78.5)
($0.2)
($156.2)
($82.4)
($0.2)
$279.4
$1,667.9
$206.6
$1,764.5
$219.0
$1,855.9
$229.9
$1,945.4
($2,619.7)
$1,709.8
($333.7)
$1.6
($30.3)
($4.3)
$0.0
($1,276.6)
($1,276.3)
$891.8
($303.5)
$11.8
($54.2)
$2.5
($108.1)
($836.1)
($1,352.9)
$945.3
($321.7)
$12.6
($57.5)
$2.6
($114.6)
($886.2)
($1,420.5)
$992.5
($337.8)
$13.2
($60.4)
$2.7
($120.3)
($930.5)
$0.0
($9.2)
($81.7)
$226.8
($556.2)
($236.7)
($657.0)
$0.0
($6.0)
($18.2)
$225.3
($761.1)
($290.9)
($850.9)
$84.0
($92.6)
($159.6)
$225.6
($576.0)
($256.8)
($775.3)
$89.1
($98.2)
($169.1)
$239.2
($610.6)
($272.2)
($821.9)
$93.5
($103.1)
($177.6)
$251.1
($641.1)
($285.8)
($863.0)
$25.7
($433.9)
$2.6
$155.8
$2.8
$150.6
$2.9
$154.8
$954.2
$1,110.0
$1,110.0
$1,260.6
$1,260.6
$1,415.4
Cash Provided (Used) By Investing Activities

Purch of short-term invest
$0.0
($400.8) ($1,527.2)
Matur of short-term invest
$0.0
$0.0 $1,491.9
Additions to PP & E
($185.9)
($213.9)
($257.1)
Disposals of PP & E
$14.8
$11.6
$7.2
Increase in Other Assets
($46.3)
($53.4)
($39.1)
Inc (dec.) in Other Liab
$1.8
($0.9)
$11.1
Acq of subs-net assets acq
$0.0
($289.1)
($47.2)
Cash Used By Investing Act
($215.6)
($946.5)
($360.4)
Cash Provided (Used) By Financing Activities

Proc from Long-term Debt
$90.4
$153.8
Reduct in Long-term Debt
($55.9)
($206.6)
Inc (dec.) in Notes Payable
($349.8)
($0.3)
Proc from Exer of Options
$44.2
$253.6
Repurchase of stock
($196.3)
($419.8)
Dividends - common & pref
($137.8)
($179.2)
Cash Used By Financing Act
($605.2)
($398.5)
5/31/2006
Effect of Exch. Rate Chgs

Net Inc (Dec.) Cash & Equiv.
($38.1)
$58.5
$24.6
$194.0
$6.8
$560.1
Cash and Equiv. Beg of Year

Cash and Equiv. End of Year
$575.5
$634.0
$634.0
$828.0
$828.0
$1,388.1
$1,388.1
$954.2
No. 12
HW 24
Page 13

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005

Actual
Actual
Actual
5/31/2006
Actual
5/31/2007
Forecast
5/31/2008
5/31/2009 Ave. %
Forecast
Forecast
of Sales
Cash Flow Statement (% of Sales)

Cash Provided (Used) By Operating Activities
Net Income
4.4%
7.7%
Income Charges (Credits) Not Affecting Cash:
Depreciation
2.2%
2.1%
Cum Effect of Acct Change
2.5%
0.0%
0.5%
0.2%
Amortization and other
0.2%
0.5%
Inc Tax Ben Exer Options
0.1%
0.4%
Changes in Certain Working Capital Components:
(Inc) dec in Inventories
-1.0%
-0.5%
(Inc) dec in Accounts Rec.
-1.3%
0.7%
Dec (inc) in Prepd & Ot CA
0.6%
-0.8%
Inc (dec.) in Account Pay,
0.0%
0.0%
Accr Liab., & Inc Tax Pay.
0.3%
2.2%
Cash Provided By Operations
8.6%
12.4%
8.8%
9.3%
7.7%
7.6%
7.6%
7.6%
1.9%
0.0%
0.2%
0.2%
0.5%
1.9%
0.0%
-0.2%
0.1%
0.4%
2.0%
0.6%
0.2%
0.2%
0.3%
2.0%
0.6%
0.2%
0.2%
0.3%
2.0%
0.6%
0.2%
0.2%
0.3%
2.0%
0.6%
0.2%
0.2%
0.3%
-0.8%
-0.7%
0.5%
0.0%
0.8%
11.4%
-1.3%
-0.6%
-0.2%
0.0%
1.9%
11.2%
-0.9%
-0.5%
0.0%
0.0%
1.3%
11.0%
-0.9%
-0.5%
0.0%
0.0%
1.3%
10.9%
-0.9%
-0.5%
0.0%
0.0%
1.3%
10.9%
-0.9%
-0.5%
0.0%
0.0%
1.3%
10.9%
-3.3%
0.0%
-1.7%
0.1%
-0.4%
0.0%
-2.4%
-7.7%
-11.1%
10.9%
-1.9%
0.1%
-0.3%
0.1%
-0.3%
-2.6%
-17.5%
11.4%
-2.2%
0.0%
-0.2%
0.0%
0.0%
-8.5%
-8.0%
5.6%
-1.9%
0.1%
-0.3%
0.0%
-0.7%
-5.2%
-8.0%
5.6%
-1.9%
0.1%
-0.3%
0.0%
-0.7%
-5.2%
-8.0%
5.6%
-1.9%
0.1%
-0.3%
0.0%
-0.7%
-5.2%
-8.0%
5.6%
-1.9%
0.1%
-0.3%
0.0%
-0.7%
-5.2%
Cash Provided (Used) By Financing Activities

Proc from Long-term Debt
0.8%
1.3%
Reduct in Long-term Debt
-0.5%
-1.7%
Inc (dec.) in Notes Payable
-3.3%
0.0%
Proc from Exer of Options
0.4%
2.1%
Repurchase of stock
-1.8%
-3.4%
0.0%
-0.1%
-0.6%
1.7%
-4.0%
0.0%
0.0%
-0.1%
1.5%
-5.1%
0.5%
-0.6%
-1.0%
1.4%
-3.6%
0.5%
-0.6%
-1.0%
1.4%
-3.6%
0.5%
-0.6%
-1.0%
1.4%
-3.6%
0.5%
-0.6%
-1.0%
1.4%
-3.6%
Cash Provided (Used) By Investing Activities

Purch of short-term invest
0.0%
Matur of short-term invest
0.0%
Additions to PP & E
-1.7%
Disposals of PP & E
0.1%
Increase in Other Assets
-0.4%
Inc (dec.) in Other Liab
0.0%
Acq of subs-net assets acq
0.0%
Cash Used By Investing Act
-2.0%
No. 12
HW 24
Page 14

Nike, Inc.
Financial Plan
5/31/2003 5/31/2004 5/31/2005
5/31/2006
5/31/2007
5/31/2008
5/31/2009 Ave. %
Forecast of Sales
-1.6%
-1.6%
-4.8%
-4.8%
Dividends - common & pref

Cash Used By Financing Act
Actual
-1.3%
-5.7%
Actual
-1.5%
-3.3%
Actual
-1.7%
-4.8%
Actual
-1.9%
-5.7%
Forecast
-1.6%
-4.8%
Forecast
-1.6%
-4.8%
Effect of Exch. Rate Chgs

Net Inc (Dec.) Cash & Equiv.
-0.4%
0.5%
0.2%
1.6%
0.0%
4.1%
0.2%
-2.9%
0.0%
1.0%
0.0%
0.9%
0.0%
0.9%
0.0%
0.8%
Cash and Equiv. Beg of Year

Cash and Equiv. End of Year
5.4%
5.9%
5.2%
6.8%
6.0%
10.1%
9.3%
6.4%
6.0%
6.9%
6.5%
7.4%
7.1%
7.9%
6.5%
7.3%
8.4%
12.0%
20.2%
21.6%
13.6%
22.4%
23.2%
14.1%
22.6%
23.3%
12.0%
19.1%
19.7%
12.0%
19.3%
20.0%
12.0%
19.0%
18.9%
5.8
4.3
1.7
6.3
4.4
1.6
6.4
4.2
1.6
6.2
4.2
1.6
5.9
4.2
1.6
5.9
4.2
1.6
12.4%
21.0
10.6%
59.0
8.7%
388.5
7.2%
-57.2
10.2%
78.4
10.9%
42.3
5.7%
38.4
Liquidity
Current
Quick
232.2%
135.7%
274.4%
146.7%
317.7%
182.6%
280.5%
127.7%
271.4%
144.3%
274.4%
147.3%
277.4%
150.3%
Market Value
Price to Earnings
Market to Book
62.3
739.7%
39.6
783.0%
35.4
760.5%
29.5
654.2%
30.00
590.6%
31.00
603.7%
32.00
565.8%
Financial Ratios
Profitability
Return On Sales (ROS)
Return On Assets (ROA)
Return On Equity (ROE)
Asset Turnover
Receivables Turnover
Inventory Turnover
Asset Turnover
Financial Leverage
Debt
Times Interest Earned
No. 12
HW 24
Page 15

Global Impact P2P
Financial Plan
Key Assumptions
Sales Growth Rate
Tax Rate
Price / Earnings
Problems
2003
2004
2005
2006
Actual
Actual
Actual
Actual
40.5%
6.3%
7.4%
26.1%
8.6
38.8%
6.3%
7.4%
25.9%
8.4
21.4%
38.2%
6.4%
7.5%
26.8%
8.7
19.3%
36.0%
6.5%
7.6%
24.4%
9.3

Sales
Cost of Goods Sold
Gross Margin
$185.76
$109.81
$75.95
$194.29
$112.25
$82.04
$235.84
$138.97
$96.87
$281.38
$171.57
$109.81

Depreciation
EBIT
$12.73
$11.66
$51.56
$13.54
$12.39
$56.11
$16.87
$14.58
$65.42
$19.94
$18.37
$71.50
Interest Expense
Taxes
$14.23
$15.12
$15.69
$15.68
$23.88
$15.87
$24.55
$16.92

Global Impact P2P
Financial Plan
Problems
2003
2004
2005
2006
Net Income
Earnings Per Share
Actual
$22.21
2.03
$10.94
Actual
$24.74
2.10
$11.78
Actual
$25.67
2.15
$11.94
Actual
$30.03
2.44
$12.31

Dividends
Change in Equity
$5.80
$16.41
$6.41
$18.33
$6.87
$18.80
$7.33
$22.70
Assets
Current Assets
Cash & Equivalents
Receivables
Inventories
$8.56
$41.63
$52.11
$102.30
$13.97
$49.52
$60.94
$124.43
$15.34
$57.37
$73.49
$146.20
$17.75
$68.91
$86.32
$172.98

Accumulated Depreciation
Net PPE
$663.29
$189.20
$474.09
$846.39
$201.59
$644.80
$910.34
$216.17
$694.17
$958.31
$234.54
$723.77
Total Assets
$576.39
$769.23
$840.37
$896.75

Current Liabilities

Global Impact P2P
Financial Plan
Problems
2003
2004
2005
2006
Accounts Payable
Short-term Debt
Actual
$62.46
$202.12
$264.58
Actual
$90.48
$307.87
$398.35
Actual
$134.32
$304.96
$439.28
Actual
$174.57
$312.85
$487.42
Long-term Debt
Total Liabilities
$40.00
$304.58
$55.74
$454.09
$62.15
$501.43
$17.69
$505.11
Paid-in Capital
Retained Earnings
$180.00
$91.81
$271.81
$205.00
$110.14
$315.14
$210.00
$128.94
$338.94
$240.00
$151.64
$391.64
$576.39
$769.23
$840.37
$896.75

47.1%
$94.58
53.6%
52.0%
$99.12 $103.47
$146.49
$8.50
45.8%
$114.95
($6.57)

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CORPORATE FINANCIAL PLANNING

Cutting Edge B2B Inc.

Income Statement (Mil.$)

Selling, Gen & Adm Expenses

CORPORATE FINANCIAL PLANNING

Balance Sheet (Mil.$)

CORPORATE FINANCIAL PLANNING

Liabilities and Shareholders' Equity

Total Liab. & Share. Equity

Debt / (Debt + Equity)

CORPORATE FINANCIAL PLANNING

Selling, Gen & Adm Expenses

Property, Plant & Equip. (PPE)

Liabilities and Shareholders' Equity

Income Statement (% of Sales)

Allocation of Net Income:

Balance Sheet (% of Sales)

CORPORATE FINANCIAL PLANNING

Total Liabilities and Equity

Cash Flow From Operating Activities

Cash Flow From Investing Activities

Cash Flow Statement (Mil.$)

CORPORATE FINANCIAL PLANNING

Change in Cash and Equiv

CORPORATE FINANCIAL PLANNING

Return On Assets (ROA)

CORPORATE FINANCIAL PLANNING

External Funds Needed by the Sales Growth Rate

External Funds Needed

Input Values for 2007 Sales Growth Rate

Sales Growth Rate

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Income Statement (Mil.$)

$10,697.0 $12,253.1 $13,739.7

Interest Expense, Net

Allocation of Net Income:

Balance Sheet (Mil.$)

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Property, Plant & Equip., Net

Liabilities and Shareholders' Equity

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Income Statement (% of Sales)

Selling, Gen & Adm Expenses

Interest Expense, Net

Allocation of Net Income:

Balance Sheet (% of Sales)

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Liabilities and Shareholders' Equity

Total Liab. & Share. Equity

Property, Plant & Equip., Net

Cash Flow Statement (Mil.$)

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Cash Provided (Used) By Investing Activities

Cash Provided (Used) By Financing Activities

Effect of Exch. Rate Chgs

Cash and Equiv. Beg of Year

CORPORATE FINANCIAL PLANNING

5/31/2003 5/31/2004 5/31/2005

Cash Flow Statement (% of Sales)