| Q3 |
| Assumptions |
| Growth in units sold from year 0 to year 1 | 10% | | Notes: |
| Unit price growth from year 0 to year 1 | -45% | | Other Current assets/Sales does not include cash or inventory |
| COGS (per unit sold) | $3.50 | | Depreciation and interest are calculated based on average Balance Sheet items. |
| Other Current Assets/Sales | 15% | | The firm can take any tax credits associated with losses. |
| Inventory as % of forecasted COGS next year | 33% |
| Current Liabilities/Sales | 8% |
| Depreciation rate (% of avg. gross fixed assets) | 10% |
| Interest rate on debt | 10% |
| Interest paid on cash and mrk sec. | 8% |
| Tax rate | 40% |
| Dividend Cut Percentage from year 0 to year 1 | 0% |
| | | Forecast | Forecast | Forecast | Forecast | Forecast |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Income statement |
| Units | 100.00 | 110.00 | 110.00 | 110.00 | 110.00 | 110.00 |
| Price | $7.00 | $3.85 | $3.85 | $3.85 | $3.85 | $3.85 |
| Sales | $700 |
| COGS | -$350 |
| Interest payment on debt | -$3 |
| Interest earned on Cash and Mrk Sec. | $4 |
| Depreciation | -$70 |
| Profit Before tax | $281 |
| Taxes | -$113 |
| Profit after tax | $169 |
| Dividends | -$63 |
| Retained earnings | $106 |
| Balance Sheet |
| Cash and Marketable Sec. | $14 |
| Other Current Assets | $105 |
| Inventory | $128 |
| Fixed Assets |
| At cost | $749 |
| Depreciation | -$210 |
| Net Fixed Assets | $539 |
| Total Assets | $786 |
| Current liabilities | $56 |
| Debt | $30 |
| Stock | $200 |
| Accumulated Retained Earnings | $500 |
| Total liabilities and equity | $786 |
garinh
final_-_sxxxxxxxx_1.xlsx
