table 2-1 - $18,000 $18,000 CAPEX 400,000 80,000 94,000...

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Predicted sales for 2010 $1,000,000 Sales Growth rate for 2011-2012 10% Gross Profit Margin=Gross profit/sales 30% Operating Expenses/sales 20% Tax Rate 30% Gross plant and equipment/sales 40% accounts receivable and inventories/sales 25% accounts payable plus accrued expenses/sales 15% Short-term notes payable/total assets 0% long-term debt/total assets 0% depreciable life 10 years depreciatuib method straight line Pro forma income statements 2010 2011 2012 sales $1,000,000 $1,100,000 $1,210,000 COGS $700,000 $770,000 $847,000 Gross Profit $300,000 $330,000 $363,000 Operating Expenses $200,000 $220,000 $242,000 FCF 2009 2010 2011 2012 Depreciation Expense $40,000 $50,000 $61,000 EBIT 60,000 60,000 60,000 EBIT $60,000 $60,000 $60,000 Taxes 18,000 18,000 18,000 Interest expense $0 $0 $0 NOPAT 42,000 42,000 42,000 Earning before taxes $60,000 $60,000 $60,000 DA 40,000 50,000 61,000 Taxes $18,000
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Unformatted text preview: $18,000 $18,000 CAPEX 400,000 80,000 94,000 (423,000) Net income $42,000 $42,000 $42,000 100,000 10,000 11,000 (121,000) FCF (8,000) (13,000) 647,000 Pro forma balance sheet Operating NWC 100,000 110,000 121,000 accounts receivable and inventories/sales $250,000 $275,000 $302,500 Gross plant and equipment/sales $400,000 $440,000 $484,000 Less: Accumulated depreciation expense $40,000 $90,000 $111,000 Net plant and equipemnt $360,000 $350,000 $373,000 Total Assets $610,000 $625,000 $675,500 accounts payable plus accrued expenses/sales $150,000 $165,000 $181,500 Short-term notes payable $0 $0 $0 Current liabilities $150,000 $165,000 $181,500 Long-term debts $0 $0 $0 common equity $460,000 $460,000 $494,000 tatal liabilities plus common equity $610,000 $625,000 $675,500 Change in operating net working capital...
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This note was uploaded on 11/22/2011 for the course BUS 401 taught by Professor Terrywilson during the Spring '11 term at Solano Community College.

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