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Digital Everywhere-A

Digital Everywhere-A - This spreadsheet show the results...

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This spreadsheet show the results assuming current time is the end of 1998. This is not in the HW, bu Assume $1 million is required to run the business Exhibit 1 Pro Forma Projections for Digital Ever Digital Everywhere Inc. Pro Forma Projections (in $,000s) Income Statement 1998(year0) 1999 2000 2001 Net Sales 8,500 15,000 35,500 46,000 COGS 3,200 5,600 14,000 18,100 Gross Profit 5,300 9,400 21,500 27,900 SG&A 3,500 5,410 6,400 5,300 Depreciation 0 91 239 253 R&D 1,100 2,800 4,100 5,400 Earnings before Interest and Tax 700 1,190 11,000 17,200 Income Tax (35%) 245 417 3,850 6,020 Net earnings 455 774 7,150 11,180 Balance Sheet 1998 1999 2000 2001 Cash 1,000 1,000 4,793 13,907 Working Cash 1,000 1,000 1,000 1,000 Excess Cash 0 0 3,793 12,907 Accounts Receivable 1,417 2,500 5,917 7,667 Inventories 400 700 1,750 2,263 Other 354 625 1,479 1,917 Total Current Assets 3,171 4,825 13,939 25,753 Net Fixed Assets 906 2,300 3,200 4,000 Total Assets 4,077 7,125 17,139 29,753 Liabilities and Shareholders' Equity Accounts payable 533 933 2,333 3,017 Accrued Expenses 607 1,071 2,536 3,286 Current Liabilities 1,140 2,005 4,869 6,302 Net Worth 2,936 5,120 12,270 23,450 Total liabilities and net worth 4,077 7,125 17,139 29,753 Operating Working Capital 2,031 2,821 5,277 6,544 Free Cash Flow Analysis EBIT 1,190 11,000 17,200 - EBIT*tax rate 417 3,850 6,020 + Depreciation 91 239 253 - Change in WC 790 2,456 1,267 - Cap Ex 1,485 1,139 1,053 Free Cash Flow -1,411 3,794 9,113
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