IN ANNAULA GENERAL MEETING OF A COMPANY, THE SALES DEPARTMENT HAS PRODUCED

SOME HYPER SALE INFRONT OF BOARD OF DIRECTORS.

BOD IS STILL THINKING THAT THESE FIGURES ARE NOT REALISTIC
U ARE WORKING AS FINANCIAL MODELOR IN THIS COMPANY AND BOD HAVE ASKED YOU TO
PREPARE A FINANCIAL MODEL IN ORDER TO JUSTIFY THE WORRIES OF BOD
WHAT BOD WANTS?
BOD WANT TO KNOW THE EFFECT OF DIFFERERENT SALE AMOUNT (RANGING FROM 100,000 TILL
400,000 WITH INCREMENT OF 50,000) ON EPS OF THE COMPANY.
THE VARIABLE ARE:
SALES AMOUNT 100,000
COGS % (AS PER HISTORICAL DATA) 65%
OTHER EXP % ( AS PER HISTORICAL DATA) 15%
INCOME TAX RATE 35%
# OF SHARES 10,000
INPUTS FINANCIAL MODEL DATATABLE-1
SALES AMOUNT 100,000 SALES 100,000 DATATABLE-2
COGS % 65% COGS 65,000
BASE VALUES
OTHER EXP % 15% GP 35,000
INCOME TAX RATE 35% OTHER EXP 15,000
# OF SHARES 10,000 EBIT 20,000
OUTPUTS TAX 7,000
GP 35,000 NET INCOME 13,000
NI 13,000 EPS 1.30
EPS 1.30
 DATATABLE-1 MAIN
GP NI GP NI EPS
65% 35,000 13,000 35,000 13,000 1.30
70% 65% 35,000 13,000 1.30
75% 70% 30,000 9,750 0.98
80% 75% 25,000 6,500 0.65
85% 80% 20,000 3,250 0.32
90% 85% 15,000 - -
95% 90% 10,000 (3,250) (0.33)
100% 95% 5,000 (6,500) (0.65)
100% - (9,750) (0.98)
 OTHER EXP.%
1 15% 16% 17% 18%
60% 1.63 1.56 1.50 1.43
65% 1.30 1.24 1.17 1.11
70% 0.98 0.91 0.85 0.78
75% 0.65 0.58 0.52 0.45
80% 0.32 0.26 0.19 0.13
85% - (0.07) (0.13) (0.20)
90% (0.33) (0.39) (0.46) (0.52)
95% (0.65) (0.72) (0.78) (0.85)
 DATATABLE-2 MAIN

ER EXP.%
19% 20%
1.37 1.30
1.04 0.98
0.72 0.65
0.39 0.32
0.06 -
(0.26) (0.33)
(0.59) (0.65)
(0.91) (0.98)
 O
R
M
MONTHS SALES A
JAN
FEB
97,910
86,750
N
MAR 83,440 C
APR 78,800 E
MAY 75,860
JUN 60,850
JUL 58,770
AUG 54,880
SEP 49,830
OCT 44,430 120,000
NOV 44,180
100,000
DEC 10,570
80,000

60,000
SALES
40,000

20,000

-
N B R R Y N L P T V C
JA FE MA AP MA JU JU AUG SE OC NO DE
 SALES

T V C
OC NO DE