finance question

Final Project

		Your Numbers
		Sales in 2019	120000
		Market Share in 2019	14%
	TABLE 2 SPREADSHEET		Idexo’s Income Statement and Balance Sheet
	1	Year		2019		1	Year				2019
	2	Income Statement ($000s)				2	Balance Sheet ($000s)
	3	Sales		120,000		3	Assets
	4	Cost of Goods Sold				4	Cash and Cash Equivalents				15,000
	5	Raw Materials		-21,333		5	Accounts Receivable				20,000
	6	Direct Labor Costs		-24,000		6	Inventories				8,219
	7	Gross Profit		74,667		7	Total Current Assets				43,219
	8	Sales and Marketing		-15,000		8	Property, Plant, and Equipment				60,000
	9	Administration		-18,000		9	Goodwill				1000
	10	EBITA		41,667		10	Total Assets				104,219
	11	Depreciation		-6,667		11	Liabilities and Stockholders' Equity
	12	EBIT		35,000		12	Accounts Payable				6,205
	13	Interest Expense (net)		-1,021		13	Debt				20,000
	14	Pretax Income		33,979		14	Total Liabilities				26,205
	15	Income Tax		-4,893		15	Stockholders' Equity				78,014
	16	Net Income		29,086		16	Total Liabilities and Equity				104,219
	TABLE 2 SPREADSHEET		Idexo’s Sales and Operating Cost Projections
	1	Year		2019	2020		2021	2022	2023	2024
	2	Sales Data	Growth/Yr
	3	Market Size (000s units)	6.0%	20,000	21,200		22,472	23,820	25,250	26,765
	4	Market Share*	1.0%	14.0%	15.0%		16.0%	17.0%	18.0%	18.0%
	5	Average Sales Price ($/unit)	2.0%	42.86	43.71		44.59	45.48	46.39	47.32
	6
	7	Operating Expense and Tax Data
	8	Gross Margin		62.2%	53.0%		53.0%	53.0%	53.0%	53.0%
	9	Sales and Marketing (% sales)		12.5%	16.5%		18.0%	19.5%	20.0%	20.0%
	10	Administration (% sales)		15.0%	15.0%		15.0%	14.0%	13.0%	13.0%
	11	Tax Rate		14.4%	35.0%		35.0%	35.0%	35.0%	35.0%
	* Market Share growth is expected through 2017 only. Growth is shown in absolute terms.
	TABLE 3 SPREADSHEET		Idexo’s Capital Expenditure Forecast
	1	Year		2019	2020		2021	2022	2023	2024
	2	Fixed Assets and Capital Investment ($000s)
	3	Opening Book Value		60,167	60,000		58,500	57,150	73,935	77,341
	4	Capital Investment		6,500	5,000		5,000	25,000	12,000	8,000
	5	Depreciation		-6,667	-6,500		-6,350	-8,215	-8,594	-8,534
	6	Closing Book Value		60,000	58,500		57,150	73,935	77,341	76,807
	TABLE 4 SPREADSHEET		Idexo’s Debt and Interest Forecast
	1	Year		2019	2020		2021	2022	2023	2024
	2	Debt and Interest Table ($000s)
	3	Outstanding Debt		20,000	20,000		20,000	35,000	40,000	40,000
	4	Interest on Term Loan	7.0%		-1,400		-1,400	-1,400	-2,450	-2,800
			Year	2019
	Working Capital ($000s)
	Assets
	1	Accounts Receivable		20,000
	2	Raw Materials		2,630
	3	Finished Goods		5,589
	2	Inventories		8,219
	3	Minimum Cash Balance		8,219
	4	Total Current Assets		36,438
	Liabilities
	5	Wages Payable		1,726
	6	Other Accounts Payable		4,479
	5	Accounts Payable		6,205
	Net Working Capital			30,233

Berk/DeMarzo, Corporate Finance &A

&P