Assignment ..
Assignment ..
Assignment ..
Assumptions
SCENARIO 1
Revenue Growth (% Change) 10.0% 10.0% 10.0% 10.0% 10.0%
Cost of Goods Sold (% of Revenue) 42.0% 47.0% 50.0% 36.0% 35.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0% 17.0% 17.0% 17.0%
Rent and Overhead ($000's) 15,000 15,000 15,000 15,000 15,000
Depreciation & Amortization (% of PP&E) 35.0% 35.0% 35.0% 35.0% 35.0%
Interest (% of Debt) 10.0% 10.0% 10.0% 10.0% 10.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0% 28.0% 28.0% 28.0%
Accounts Receivable (Days) 18 18 18 18 18
Inventory (Days) 80 90 100 100 100
Accounts Payable (Days) 37 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000) - -
Equity Issued (Repaid) ($000's) - - - - -
SCENARIO 2
Revenue Growth (% Change) 5.0% 4.5% 4.0% 3.5% 3.0%
Cost of Goods Sold (% of Revenue) 37.0% 37.0% 36.0% 36.0% 35.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0% 17.0% 17.0% 17.0%
Rent and Overhead ($000's) 10,000 10,000 10,000 10,000 10,000
Depreciation & Amortization (% of PP&E) 40.0% 40.0% 40.0% 40.0% 40.0%
Interest (% of Debt) 5.0% 5.0% 5.0% 5.0% 5.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0% 28.0% 28.0% 28.0%
Accounts Receivable (Days) 18 18 18 18 18
Inventory (Days) 73 73 73 73 73
Accounts Payable (Days) 37 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000) - -
Equity Issued (Repaid) ($000's) - - - - -
Historical Results
2011 2012 2013 2014 2015 2016
Balance Sheet Check OK OK OK OK OK OK
Income Statement
Balance Sheet
Assets
Cash 67,971 81,210 83,715 111,069 139,550 162,521
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 8,179
Inventory 7,805 9,601 9,825 10,531 11,342 15,267
Property & Equipment 45,500 42,350 40,145 38,602 37,521 34,139
Total Assets 126,376 139,065 140,252 167,319 195,951 220,106
Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671 7,061
Debt 50,000 50,000 30,000 30,000 30,000 30,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 37,061
Shareholder's Equity
Equity Capital 70,000 70,000 70,000 70,000 70,000 70,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 113,044
Shareholder's Equity 72,474 84,265 105,340 132,053 160,280 183,044
Total Liabilities & Shareholder's Equity 126,376 139,065 140,252 167,319 195,951 220,105
Forecast Period-Scenario-1st Forecast period-Scenario-2nd
2017 2018 2019 2020 2016 2017 2018 2019 2020
OK OK OK OK
Closing Cash Balance 167,971 81,210 83,715 111,069 139,550 162,521 181,087
Supporting Schedules
(20,000) (20,000)
(20,000) (20,000)
-772 54,373 58,795 34,661 36,110 20,069 41,753 44,975
181,087 180,315 234,688 293,483 328,144 364,254 384,323 426,076