Practice Questions (ABC Company)

Practice Questions (ABC Company) - INPUTS Sales Sales...

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INPUTS Year-1 Year-2 Year-3 Year-4 Sales 3,200,000 Sales Growth 15% 15% 15% 15% 16.5% Increase in Sales Growth 10% Gross Margin 25% Expenses: Salaries 10% 10.30% 10.61% 10.93% 11.26% Rent 7% 7.21% 7.43% 7.65% 7.88% Utilities 3% 3.09% 3.18% 3.28% 3.38% Other expenses 2% 2.06% 2.12% 2.19% 2.25% Inflation 3% Tax 35% Number of Shares 100,000 Show Year 7
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1 2 3 4 Year-5 Year-6 MODEL Last Year Year-1 Year-2 Year-3 Sales 3,200,000 3,680,000 4,232,000 4,866,800 18.15% 20.0% less: COGS 2,400,000 2,760,000 3,174,000 3,650,100 Gross Profit 800,000 920,000 1,058,000 1,216,700 less: Expenses Salaries 320,000 379,040 448,973 531,808 Rent 224,000 265,328 314,281 372,266 11.59% 11.94% Utilities 96,000 113,712 134,692 159,543 8.11% 8.36% Other expenses 64,000 75,808 89,795 106,362 3.48% 3.58% EBIT 96,000 86,112 70,260 46,722 2.32% 2.39% less: TAX 33,600 30,139 24,591 16,353 Net Income 62,400 55,973 45,669 30,369 EPS 0.62 0.56 0.46 0.30 OUTPUTS Gross Profit 800,000 920,000 1,058,000 1,216,700 EBIT 96,000 86,112 70,260 46,722 Net Income 62,400 55,973 45,669 30,369 EPS 0.62 0.56 0.46 0.30
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5 6 7 Year-4 Year-5 Year-6 5,669,822 6,698,895 8,036,329 4,252,367 5,024,171 6,027,247 1,417,456 1,674,724 2,009,082 638,143 776,585 959,580 446,700 543,610 671,706 191,443 232,976 287,874 127,629 155,317 191,916 13,540 (33,764) (101,993) 4,739 - - 8,801 (33,764) (101,993) 0.09 - - 1,417,456 1,674,724 2,009,082 13,540 (33,764) (101,993) 8,801 (33,764) (101,993) 0.09 - -
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INPUTS Year-1 Year-2 Year-3 Year-4 Year-5 Sales 5,000,000 Sales Growth 50% 15% 15% 15% 16.5% 18.15% Increase in Sales Growth 10% Gross Margin 30% Expenses: Salaries 10% 10.30% 10.61% 10.93% 11.26% 11.59% Rent 7% 7.30% 7.52% 7.74% 7.98% 8.22% Utilities 3% 3.30% 3.40% 3.50% 3.61% 3.71% Other expenses 2% 2.06% 2.12% 2.19% 2.25% 2.32% Inflation 3% Tax 35% Number of Shares 100,000
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