SNHU ACC 345 project week 7
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Module7ACC345workingcopy.xlsxMilestone Balance Sheet
| Starbucks | |||||||||||
| Balance Sheet | |||||||||||
| 2019-2023 | |||||||||||
| (Numbers in millions) | |||||||||||
| Financial Statements | Vertical Analysis, Common Size Statements | ||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and Cash Equivalents | $ 2,686.60 | $ 4,350.90 | $ 6,455.70 | $ 2,818.40 | $ 3,551.50 | 13.98% | 14.81% | 20.56% | 10.07% | 12.06% | |
| Accounts Receivable Net | $ 879.20 | $ 883.40 | $ 940.00 | $ 1,175.50 | $ 1,184.10 | 4.57% | 3.01% | 2.99% | 4.20% | 4.02% | |
| Inventory | $ 1,529.40 | $ 1,551.40 | $ 1,603.90 | $ 2,176.60 | $ 1,806.40 | 7.96% | 5.28% | 5.11% | 7.78% | 6.13% | |
| Other Current Assets | $ 558.70 | $ 1,020.70 | $ 756.80 | $ 848.20 | $ 761.40 | 2.91% | 3.47% | 2.41% | 3.03% | 2.59% | |
| Total Current Assets | $ 5,653.90 | $ 7,806.40 | $ 9,756.40 | $ 7,018.70 | $ 7,303.40 | 29.42% | 26.58% | 31.08% | 25.09% | 24.80% | |
| Non-Current Assets | |||||||||||
| Property, Plant, and Equipment Net | $ 6,431.70 | $ 6,241.40 | $ 6,369.50 | $ 6,560.50 | $ 7,387.10 | 33.46% | 21.25% | 20.29% | 23.45% | 25.09% | |
| Intangibles | $ 4,272.60 | $ 12,283.40 | $ 12,263.20 | $ 11,455.00 | $ 11,751.40 | 22.23% | 41.82% | 39.06% | 40.94% | 39.91% | |
| Other Assets | $ 2,861.40 | $ 3,043.30 | $ 3,003.50 | $ 2,944.20 | $ 3,003.60 | 14.89% | 10.36% | 9.57% | 10.52% | 10.20% | |
| Total Non-Current/Fixed Assets | $ 13,565.70 | $ 21,568.10 | $ 21,636.20 | $ 20,959.70 | $ 22,142.10 | 70.58% | 73.42% | 68.92% | 74.91% | 75.20% | |
| Total Assets | $ 19,219.60 | $ 29,374.50 | $ 31,392.60 | $ 27,978.40 | $ 29,445.50 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Liabilities and Owners' Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts Payable | $ 1,189.70 | $ 997.90 | $ 1,211.60 | $ 1,441.40 | $ 1,544.30 | 6.19% | 3.40% | 3.86% | 5.15% | 5.24% | |
| Accrued Expenses and Other Current Liabilities | $ 4,979.00 | $ 3,850.20 | $ 4,689.60 | $ 4,540.70 | $ 4,673.60 | 25.91% | 13.11% | 14.94% | 16.23% | 15.87% | |
| Current Portion of Debt and Leases | $ - 0 | $ 2,498.70 | $ 2,250.20 | $ 3,169.70 | $ 3,127.40 | 0.00% | 8.51% | 7.17% | 11.33% | 10.62% | |
| Total Current Liabilities | $ 6,168.70 | $ 7,346.80 | $ 8,151.40 | $ 9,151.80 | $ 9,345.30 | 32.10% | 25.01% | 25.97% | 32.71% | 31.74% | |
| Long-Term Liabilities | |||||||||||
| Long-Term Debt and Lease Obligations | $ 11,167.00 | $ 22,321.30 | $ 21,354.90 | $ 20,635.10 | $ 21,472.40 | 58.10% | 75.99% | 68.03% | 73.75% | 72.92% | |
| Other Long-Term Liabilities | $ 8,114.90 | $ 7,505.80 | $ 7,200.80 | $ 6,890.20 | $ 6,615.60 | 42.22% | 25.55% | 22.94% | 24.63% | 22.47% | |
| Total Long-Term Liabilities | $ 19,281.90 | $ 29,827.10 | $ 28,555.70 | $ 27,525.30 | $ 28,088.00 | 100.32% | 101.54% | 90.96% | 98.38% | 95.39% | |
| Total Liabilities | $ 25,450.60 | $ 37,173.90 | $ 36,707.10 | $ 36,677.10 | $ 37,433.30 | 132.42% | 126.55% | 116.93% | 131.09% | 127.13% | |
| Owners' Equity | |||||||||||
| Common Stock, Less Treasury | $ 1.20 | $ 1.20 | $ 1.20 | $ 1.10 | $ 1.10 | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Additional Paid in Capital | $ 41.10 | $ 373.90 | $ 846.10 | $ 205.30 | $ 38.10 | 0.21% | 1.27% | 2.70% | 0.73% | 0.13% | |
| Retained Earnings | $ (5,771.20) | $ (7,815.60) | $ (6,315.70) | $ (8,449.80) | $ (7,255.80) | -30.03% | -26.61% | -20.12% | -30.20% | -24.64% | |
| Other Equity | $ (502.10) | $ (358.90) | $ 153.90 | $ (455.30) | $ (771.20) | -2.61% | -1.22% | 0.49% | -1.63% | -2.62% | |
| Total Equity | $ (6,231.00) | $ (7,799.40) | $ (5,314.50) | $ (8,698.70) | $ (7,987.80) | -32.42% | -26.55% | -16.93% | -31.09% | -27.13% | |
| Total Liabilities & Equity | $ 19,219.60 | $ 29,374.50 | $ 31,392.60 | $ 27,978.40 | $ 29,445.50 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Check Digit: This should be 0 or the balance sheet is out of balance. Check your work. | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||
Milestone Income Statement
| Starbucks | |||||||||||
| Income Statement | |||||||||||
| 2019-2023 | |||||||||||
| (Numbers in millions) | |||||||||||
| Financial Statements | Vertical Analysis, Common Size Statements | ||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| Total Revenue (or Sales) | $ 26,508.60 | $ 23,518.00 | $ 29,060.60 | $ 32,250.30 | $ 35,975.60 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Cost of Sales | $ 8,526.90 | $ 7,694.90 | $ 8,738.70 | $ 10,317.40 | $ 11,409.10 | 32.17% | 32.72% | 30.07% | 31.99% | 31.71% | |
| Gross Profit | $ 17,981.70 | $ 15,823.10 | $ 20,321.90 | $ 21,932.90 | $ 24,566.50 | 67.83% | 67.28% | 69.93% | 68.01% | 68.29% | |
| Sales, General, and Administrative Expenses | $ 13,903.80 | $ 14,261.40 | $ 15,449.80 | $ 17,315.10 | $ 18,695.70 | 52.45% | 60.64% | 53.16% | 53.69% | 51.97% | |
| Operating Income | $ 4,077.90 | $ 1,561.70 | $ 4,872.10 | $ 4,617.80 | $ 5,870.80 | 15.38% | 6.64% | 16.77% | 14.32% | 16.32% | |
| Other Income (Expense) *If expense is reported, enter as a negative number. | |||||||||||
| Interest Income / (Expense) | $ (234.50) | $ (397.30) | $ (379.70) | $ (385.90) | $ (468.90) | -0.88% | -1.69% | -1.31% | -1.20% | -1.30% | |
| Other Income (Expense) | $ 622.80 | $ - 0 | $ 864.50 | $ - 0 | $ - 0 | 2.35% | 0.00% | 2.97% | 0.00% | 0.00% | |
| Net Income (Loss), Before Tax | $ 4,466.20 | $ 1,164.40 | $ 5,356.90 | $ 4,231.90 | $ 5,401.90 | 16.85% | 4.95% | 18.43% | 13.12% | 15.02% | |
| Vertical Analysis on Revenue only | -11.28% | 23.57% | 10.98% | 11.55% | |||||||
Milestone Ratios
| Starbucks | |||||
| Ratio Analysis | |||||
| 2019-2023 | |||||
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Liquidity Ratios | |||||
| Current Ratio | 0.92 | 1.06 | 1.20 | 0.77 | 0.78 |
| Quick Ratio | 0.58 | 0.71 | 0.91 | 0.44 | 0.51 |
| Working Capital | $ (514.80) | $ 459.60 | $ 1,605.00 | $ (2,133.10) | $ (2,041.90) |
| Activity Ratios | |||||
| Receivable Turns | 30.15 | 26.62 | 30.92 | 27.44 | 30.38 |
| Days in Receivables | 12.11 | 13.71 | 11.81 | 13.30 | 12.01 |
| Revenues/Working Capital | -51.49 | 51.17 | 18.11 | -15.12 | -17.62 |
| Revenues/Fixed Assets | 4.12 | 3.77 | 4.56 | 4.92 | 4.87 |
| Revenues/Total Assets | 1.38 | 0.80 | 0.93 | 1.15 | 1.22 |
| Inventory Turns | 5.58 | 4.96 | 5.45 | 4.74 | 6.32 |
| Days in Inventory | 65.47 | 73.59 | 66.99 | 77.00 | 57.79 |
| Payables Turns | 7.17 | 7.71 | 7.21 | 7.16 | 7.39 |
| Days in Payables | 50.93 | 47.33 | 50.61 | 50.99 | 49.41 |
| Coverage/Leverage Ratios | |||||
| Fixed Assets/Equity | -1.03 | -0.80 | -1.20 | -0.75 | -0.92 |
| Profitability Ratios | |||||
| Return on Equity | -71.68% | -14.93% | -100.80% | -48.65% | -67.63% |
| Return on Total Assets | 23.24% | 3.96% | 17.06% | 15.13% | 18.35% |
| Net Profit on Revenues | 16.85% | 4.95% | 18.43% | 13.12% | 15.02% |
Corrected Balance Sheet
| Balance Sheet | |||||||||||
| Starbucks | |||||||||||
| 2019-2023 | |||||||||||
| ( numbers in millions) | |||||||||||
| Financial Statements | Vertical Analysis, Common Size Statements | ||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and Cash Equivalents | $ 2,686.60 | $ 4,350.90 | $ 6,455.70 | $ 2,818.40 | $ 3,551.50 | 13.98% | 14.81% | 20.56% | 10.07% | 12.06% | |
| Accounts Receivable, Net | $ 879.20 | $ 883.40 | $ 940.00 | $ 1,175.50 | $ 1,184.10 | 4.57% | 3.01% | 2.99% | 4.20% | 4.02% | |
| Inventory | $ 1,529.40 | $ 1,551.40 | $ 1,603.90 | $ 2,176.60 | $ 1,806.40 | 7.96% | 5.28% | 5.11% | 7.78% | 6.13% | |
| Other Current Assets | $ 558.70 | $ 1,020.70 | $ 756.80 | $ 848.20 | $ 761.40 | 2.91% | 3.47% | 2.41% | 3.03% | 2.59% | |
| Total Current Assets | $ 5,653.90 | $ 7,806.40 | $ 9,756.40 | $ 7,018.70 | $ 7,303.40 | 29.42% | 26.58% | 31.08% | 25.09% | 24.80% | |
| Non-Current Assets | |||||||||||
| Property, Plant and Equipment Net | $ 6,431.70 | $ 6,241.40 | $ 6,369.50 | $ 6,560.50 | $ 7,387.10 | 33.46% | 21.25% | 20.29% | 23.45% | 25.09% | |
| Intangibles | $ 4,272.60 | $ 4,149.30 | $ 4,027.20 | $ 3,439.40 | $ 3,338.80 | 22.23% | 14.13% | 12.83% | 12.29% | 11.34% | |
| Other Assets | $ 2,861.40 | $ 11,177.40 | $ 11,239.50 | $ 10,959.80 | $ 11,416.20 | 14.89% | 38.05% | 35.80% | 39.17% | 38.77% | |
| Total Non-Current/Fixed Assets | $ 13,565.70 | $ 21,568.10 | $ 21,636.20 | $ 20,959.70 | $ 22,142.10 | 70.58% | 73.42% | 68.92% | 74.91% | 75.20% | |
| Total Assets | $ 19,219.60 | $ 29,374.50 | $ 31,392.60 | $ 27,978.40 | $ 29,445.50 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Liabilities and Owners' Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts Payable | $ 1,189.70 | $ 997.90 | $ 1,211.60 | $ 1,441.40 | $ 1,544.30 | 6.19% | 3.40% | 3.86% | 5.15% | 5.24% | |
| Accrued Expenses and Other Current Liabilities | $ 4,979.00 | $ 3,411.40 | $ 4,689.60 | $ 4,540.70 | $ 4,673.60 | 25.91% | 11.61% | 14.94% | 16.23% | 15.87% | |
| Current Portion of Debt and Leases | $ - 0 | $ 2,937.50 | $ 2,250.20 | $ 3,169.70 | $ 3,127.40 | 0.00% | 10.00% | 7.17% | 11.33% | 10.62% | |
| Total Current Liabilities | $ 6,168.70 | $ 7,346.80 | $ 8,151.40 | $ 9,151.80 | $ 9,345.30 | 32.10% | 25.01% | 25.97% | 32.71% | 31.74% | |
| Long-Term Liabilities | |||||||||||
| Long-Term Debt and Lease Obligations | $ 11,167.00 | $ 22,321.30 | $ 21,354.90 | $ 20,635.10 | $ 21,472.40 | 58.10% | 75.99% | 68.03% | 73.75% | 72.92% | |
| Other Long-Term Liabilities | $ 8,114.90 | $ 7,505.80 | $ 7,200.80 | $ 6,890.20 | $ 6,615.60 | 42.22% | 25.55% | 22.94% | 24.63% | 22.47% | |
| Total Long-Term Liabilities | $ 19,281.90 | $ 29,827.10 | $ 28,555.70 | $ 27,525.30 | $ 28,088.00 | 100.32% | 101.54% | 90.96% | 98.38% | 95.39% | |
| Total Liabilities | $ 25,450.60 | $ 37,173.90 | $ 36,707.10 | $ 36,677.10 | $ 37,433.30 | 132.42% | 126.55% | 116.93% | 131.09% | 127.13% | |
| Owners' Equity | |||||||||||
| Common Stock, Less Treasury | $ 1.20 | $ 1.20 | $ 1.20 | $ 1.10 | $ 1.10 | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Additional Paid in Capital | $ 41.10 | $ 373.90 | $ 846.10 | $ 205.30 | $ 38.10 | 0.21% | 1.27% | 2.70% | 0.73% | 0.13% | |
| Retained Earnings | $ (5,771.20) | $ (7,815.60) | $ (6,315.70) | $ (8,449.80) | $ (7,255.80) | -30.03% | -26.61% | -20.12% | -30.20% | -24.64% | |
| Other Equity | $ (502.10) | $ (358.90) | $ 153.90 | $ (455.30) | $ (771.20) | -2.61% | -1.22% | 0.49% | -1.63% | -2.62% | |
| Total Equity | $ (6,231.00) | $ (7,799.40) | $ (5,314.50) | $ (8,698.70) | $ (7,987.80) | -32.42% | -26.55% | -16.93% | -31.09% | -27.13% | |
| Total Liabilities & Equity | $ 19,219.60 | $ 29,374.50 | $ 31,392.60 | $ 27,978.40 | $ 29,445.50 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Check Digit: This should be 0 or the balance sheet is out of balance. Check your work. | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||
| *If you received a perfect score on the Milestone Two, please place an "X" next to Miestone Two Perfect Score. Then you do not have to complete this tab because all entries on the Milestone Corrected Balance Sheet tab are correct. If you need to correct answers from Milestone Two, place an "X" next to Corrected Milestone Two. Then enter in your corrected answers on this tab. Please highlight your corrected answers in green or note with an asterisk. | |||||||||||
| Milestone Two Perfect Score: | |||||||||||
| Correct Milestone Two: | |||||||||||
Corrected Income Statement
| Balance Sheet | |||||||||||
| Income Statement | |||||||||||
| 2019-2023 | |||||||||||
| ( numbers in millions) | |||||||||||
| Financial Statements | Vertical Analysis, Common Size Statements | ||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| Total Revenue (or Sales) | $ 26,508.60 | $ 23,518.00 | $ 29,060.60 | $ 32,250.30 | $ 35,975.60 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Cost of Sales | $ 19,020.50 | $ 18,458.90 | $ 20,669.60 | $ 23,879.20 | $ 26,129.40 | 71.75% | 78.49% | 71.13% | 74.04% | 72.63% | |
| Gross Profit | $ 7,488.10 | $ 5,059.10 | $ 8,391.00 | $ 8,371.10 | $ 9,846.20 | 28.25% | 21.51% | 28.87% | 25.96% | 27.37% | |
| Sales, General, and Administrative Expenses | $ 3,708.20 | $ 3,819.90 | $ 3,904.20 | $ 3,987.40 | $ 4,365.10 | 13.99% | 16.24% | 13.43% | 12.36% | 12.13% | |
| Operating Income | $ 3,779.90 | $ 1,239.20 | $ 4,486.80 | $ 4,383.70 | $ 5,481.10 | 14.26% | 5.27% | 15.44% | 13.59% | 15.24% | |
| Other Income (Expense) *If expense is reported, enter as a negative number. | |||||||||||
| Interest Income / (Expense) | $ (234.50) | $ (397.30) | $ (379.70) | $ (385.90) | $ (468.90) | -0.88% | -1.69% | -1.31% | -1.20% | -1.30% | |
| Other Income (Expense) | $ 920.80 | $ 322.50 | $ 1,249.80 | $ 234.10 | $ 389.70 | 3.47% | 1.37% | 4.30% | 0.73% | 1.08% | |
| Net Income (Loss), Before Tax | $ 4,466.20 | $ 1,164.40 | $ 5,356.90 | $ 4,231.90 | $ 5,401.90 | 16.85% | 4.95% | 18.43% | 13.12% | 15.02% | |
| Vertical Analysis on Revenue Only | -11.28% | 23.57% | 10.98% | 11.55% | |||||||
| *If you received a perfect score on the Milestone Two, please place an "X" next to Miestone Two Perfect Score. Then you do not have to complete this tab because all entries on the Milestone Corrected Balance Sheet tab are correct. If you need to correct answers from Milestone Two, place an "X" next to Corrected Milestone Two. Then enter in your corrected answers on this tab. Please highlight your corrected answers in green or note with an asterisk. | |||||||||||
| Milestone Two Perfect Score: | |||||||||||
| Correct Milestone Two: |
Corrected Ratios
| Balance Sheet | |||||
| Ratio Analysis | |||||
| 2019-2023 | |||||
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Liquidity Ratios | |||||
| Current Ratio | 0.92 | 1.06 | 1.20 | 0.77 | 0.78 |
| Quick Ratio | 0.58 | 0.71 | 0.91 | 0.44 | 0.51 |
| Working Capital | $ (514.80) | $ 459.60 | $ 1,605.00 | $ (2,133.10) | $ (2,041.90) |
| Activity Ratios | |||||
| Receivable Turns | 30.15 | 26.62 | 30.92 | 27.44 | 30.38 |
| Days in Receivables | 12.11 | 13.71 | 11.81 | 13.30 | 12.01 |
| Revenues/Working Capital | -51.49 | 51.17 | 18.11 | -15.12 | -17.62 |
| Revenues/Fixed Assets | 4.12 | 3.77 | 4.56 | 4.92 | 4.87 |
| Revenues/Total Assets | 1.38 | 0.80 | 0.93 | 1.15 | 1.22 |
| Inventory Turns | 0.08 | 0.08 | 0.08 | 0.09 | 0.07 |
| Days in Inventory | 4539.35 | 4342.85 | 4703.79 | 4004.37 | 5279.69 |
| Payables Turns | 15.99 | 18.50 | 17.06 | 16.57 | 16.92 |
| Days in Payables | 22.83 | 19.73 | 21.40 | 22.03 | 21.57 |
| Coverage/Leverage Ratios | |||||
| Fixed Assets/Equity | -1.03 | -0.80 | -1.20 | -0.75 | -0.92 |
| Profitability Ratios | |||||
| Return on Equity | -71.68% | -14.93% | -100.80% | -48.65% | -67.63% |
| Return on Total Assets | 23.24% | 3.96% | 17.06% | 15.13% | 18.35% |
| Net Profit on Revenues | 16.85% | 4.95% | 18.43% | 13.12% | 15.02% |
| *If you received a perfect score on the Milestone Two, please place an "X" next to Miestone Two Perfect Score. Then you do not have to complete this tab because all entries on the Milestone Corrected Balance Sheet tab are correct. If you need to correct answers from Milestone Two, place an "X" next to Corrected Milestone Two. Then enter in your corrected answers on this tab. Please highlight your corrected answers in green or note with an asterisk. | |||||
| Milestone Two Perfect Score: | |||||
| Correct Milestone Two: |
Prospective Analysis
| [Insert company name] | ||||||
| Project Income Statements | ||||||
| [Insert dates of period covered] | ||||||
| Iinsert how data is recorded. (i.e. thousands or millions)] | ||||||
| Financial Statements | ||||||
| 2024 | 2025 | 2026 | 2027 | 2027 | Terminal | |
| Total Revenue (or Sales) | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Estimated Annual Revenue Growth Rate | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Gross Profit | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Estimated Annual Gross Profit Margin | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Sales, General, and Administrative Expenses (SG&A) | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Estimated Annual SG&A (% of Sales) | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Other Income (Expense) *If expense is reported, enter as a negative number. | ||||||
| Interest Income / (Expense) | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Other Income (Expense) | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Net Income (Loss) | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
Discount Rate
| [Insert company name] | ||
| Development of Discount Rate and Capitalization Rate Table | ||
| 2023 | ||
| Rate | Note | |
| Risk-free long term U.S. Government bond rate | 2.60% | A |
| Equity risk premium | 6.00% | B |
| Industry premium estimate | 1.50% | C |
| 3.00% | D | |
| Cost of equity (Discount Rate) | 13.10% | Sum of A - D above |
| Less: Long-term sustainable growth rate | -2.50% | E |
| Capitalization Rate | 10.60% | |
| NOTES | ||
| (A) Yield on the twenty-year U.S. Treasury bond as of December 31, 20XX, per the U.S. Treasury | ||
| (B) Long-horizon expected return of large stocks over risk free securities, U.S. Equity Risk Premium (6.0%) | ||
| (C) SIC code XX, 1.5% | ||
| (D) Appraiser's judgement concerning company-specific risk | ||
| (E) Estimated long-term growth rate based on inflation, Federal Reserve Bank of Philadelphia |
DCF
| [Insert company name] | ||||||
| Discounted Cash Flow Method | ||||||
| [Insert dates of period covered] | ||||||
| Projected for Years Ending December 31, | ||||||
| 2024 | 2025 | 2026 | 2027 | 2027 | Terminal | |
| Forecasted Net Income | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Plus | ||||||
| Depreciation | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| *Less | ||||||
| Cash Used for Investments | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Cash Used for Financing | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] | [insert value] |
| Net Cash Flow | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Present Value of Cash Flows | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| 13.10% | ||||||
| Net Present Value of Future Cash Flows | ERROR:#VALUE! | |||||
| Net Present Value of Terminal Cash Flow | ERROR:#VALUE! | |||||
| 10.60% | ||||||
| Total Indication of Value | ERROR:#VALUE! | |||||
| 1.00 | 2.00 | 3.00 | 4.00 | 5.00 | ||
| * NOTE: Cash USED must be entered as negative numbers. |
Valuation Summary
| [Insert company name] | ||
| Final Computation of Value | ||
| As of [Enter date] | ||
| Income Approach: Discounted Cash Flow Method | ||
| Indicated Value of Equity | ERROR:#VALUE! | |
| Weight | 100.00% | |
| Weighted Value | ERROR:#VALUE! | |
| Indicated Value with Voting Rights | ERROR:#VALUE! | |
| *Less: DLOC (Discount for Lack of Control) | 15% | ERROR:#VALUE! |
| Marketable, Minority Value | ERROR:#VALUE! | |
| **Less: DLOM (Discount for Lack of Marketability) | 25% | ERROR:#VALUE! |
| Nonmarketable, Minority Value | ERROR:#VALUE! | |
| Value of a 1% Interest | ERROR:#VALUE! | |
| *Let this default to the rate applied here for the DLOC. It is possible to override this rate with your own. However, an explanation must be provided why it was changed. | ||
| **Let this default to the rate applied here for DLOM. It is possible to override this rate with your own. However, an explantation must be provided on why it was changed. |
