Use the excel spreadsheet to project the net income for Winnebago from assumptions about key revenue & expense items. Use the following assumptions to evaluate the projected net income, operating cash flow and investment cash flow for Winnebago for 2007 by 2011.
Sales Growth through 2011 14.0%
Sales Growth after 2011 7.0% forever
Variable Costs as a % of Sales 84.0%
Fixed Costs as a % of Sales 4.0%
Depreciation Expense and Investment in Property Plant and Equipment will grow at the similar rate as Sales.
Because we suppose they pay out all excess cash Financial Income will be zero in the future.
Tax Rate 35.0%