Lazy Mower - The Lazy Mower: Is It Really Worth It? 1....

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1. Prepare a Pro Forma Statement showing the annual cash flows resulting from the Lazy Mower project. 0 1 2 3 4 5 6 7 8 9 10 Sales (units) 30,0 00 34,00 0 38,80 0 38,00 0 36,00 0 36,00 0 35,50 0 35,00 0 34,50 0 34,00 0 Adjusted Sales Price 1, 000 1,0 00 1,0 00 9 50 9 50 9 50 9 50 9 00 9 00 9 00 Revenues 30,000, 000 34,000,0 00 38,800,0 00 36,100,0 00 34,200,0 00 34,200,0 00 33,725,0 00 31,500,0 00 31,050,0 00 30,600,0 00 Variable Cost 12,000, 000 13,600,0 00 15,520,0 00 15,200,0 00 14,400,0 00 14,400,0 00 14,200,0 00 14,000,0 00 13,800,0 00 13,600,0 00 Fixed Costs 1,500, 000 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 1,500,0 00 Rent ($10,000 per month) 120, 000 120,0 00 120,0 00 120,0 00 120,0 00 120,0 00 120,0 00 120,0 00 120,0 00 120,000 EBIT 16,380, 000 18,780,0 00 21,660,0 00 19,280,0 00 18,180,0 00 18,180,0 00 17,905,0 00 15,880,0 00 15,630,0 00 15,380,0 00 MACRS Rates 0. 143 0.2 45 0.1 75 0.1 25 0.0 89 0.0 89 0.0 89 0.0 45 Depreciatio n 2,858, 000 4,898,0 00 3,498,0 00 2,498,0 00 1,786,0 00 1,786,0 00 1,786,0 00 890,0 00 - - Taxes 4,597, 480 4,719,8 80 6,175,0 80 5,705,8 80 5,573,9 60 5,573,9 60 5,480,4 60 5,096,6 00 5,314,2 00 5,229,2 00 OCF 11,782, 520 14,060,1 20 15,484,9 20 13,574,1 20 12,606,0 40 12,606,0 40 12,424,5 40 10,783,4 00 10,315,8 00 10,150,8 00 Net Working Capital (5% of Revenues) 900,0 00 1,500, 000 1,700,0 00 1,940,0 00 1,805,0 00 1,710,0 00 1,710,0 00 1,686,2 50 1,575,0 00 1,552,5 00 1,530,0 00 Investment in WC (900,0 00)
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Lazy Mower - The Lazy Mower: Is It Really Worth It? 1....

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