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Financial Forecast Assumptions
General Electric Company (GE)
(Dollars and Shares in Millions, Except Per Share Amounts)

 Actual Forecast
  12 Months  
12/31/03  		 12 Months  
12/31/04  		 12 Months  
12/31/05  		   12 Months  
12/31/06  		 12 Months  
12/31/07  		 12 Months  
12/31/08  		 12 Months  
12/31/09  		 12 Months  
12/31/10  
 
Year-to-Year Change in Net Sales NA   19.1%   11.3%    
 
Gross Margin % 54.6%   54.1%   55.4%    
 
Operating Expenses as % of Net Sales 29.8%   30.7%   30.4%    
 
Other Income (Expense) * $1,470   $534   $(1,922)    
 
Interest Rate on Borrowings * NA   NA   NA    
 
Interest Rate on Subordinated Debt * NA   NA   NA    
 
Income Tax Rate 20.2%   17.2%   19.1%    
 
Cash * $12,664   $12,152   $9,011    
 
Number of Days Sales in Accounts Receivable 957.5   836.7   773.5    
 
Number of Days Cost of Goods Sold in Inventory 62.4   57.8   57.2    
 
Other Current Assets $129,269   $56,923   $53,144    
 
Intangibles * $55,025   $78,456   $81,726    
 
Investments $0   $0   $0    
 
Other Assets $92,596   $221,823   $134,202    
 
Current Maturities * $0   $0   $0    
 
Number of Days Cost of Goods Sold in Accounts Payable 142.2   113.1   116.2    
 
Number of Days Operating Expenses in Accrued Expenses 166.6   155.0   147.5    
 
Taxes Payable * $0   $0   $0    
 
Other Current Obligations * $6,446   $6,266   $7,079    
 
Other Current Liabilities * $0   $0   $0    
 
Term Loan * $171,966   $207,871   $212,281    
 
Subordinated Debt * $0   $0   $0    
 
Other Long Term Obligations * $177,990   $90,855   $86,064    
 
Other Liabilities * $19,134   $140,823   $60,716    
 
Common Stock * $669   $669   $669    
 
Preferred Stock * $0   $0   $0    
 
Other Equity * $20,373   $31,503   $27,894    
 
Treasury Stock * $(24,597)   $(12,762)   $(17,326)    
 
Capital Expenditures (Net) NA   $14,666   $5,861    
 
Dividends as % of Net Earnings * 50.2%   49.2%   57.2%    
 
Depreciation (Net) NA   $4,951   $1,436    
 
Estimated Borrowing Base as a % of Accounts Receivable 80.0%   80.0%   80.0%    
 
Estimated Borrowing Base as a % of Inventory 35.0%   35.0%   35.0%    
 
Estimated Borrowing Base as a % of
      Property, Plant and Equipment (Net)		 50.0%   50.0%   50.0%    
 
Common Shares Outstanding (Fully Diluted) 10,090   10,447   10,619    

* Changes to these assumptions will change your Multi-year forecast but will not change the intrinsic valuation model default assumptions.