3 Statement Model

Table of Contents
3 Statement Model

Notes
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© Corporate Finance Institute®. All rights reserved. Historical Results Forec
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK

Assumptions
Income statement
Revenue Growth (% Change) 15.8% 11.2% 8.4% 5.9% 5.0%
Cost of Goods Sold (% of Revenue) 38.3% 40.7% 37.4% 37.4% 38.0% 37.0%
Salaries and Benefits ($000's) 26,427 22,658 23,872 23,002 25,245 25,000
Rent and Overhead ($000's) 10,963 10,125 10,087 11,020 11,412 10,000
Depreciation & Amortization (% of PP&E Open Bal) 39.0% 39.9% 40.6% 41.2% 41.7% 40.0%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0% 3.0% 3.0% 3.0%
Tax Rate (% of Earnings Before Tax) 31.2% 29.2% 28.7% 29.0% 29.1% 28.0%
Balance Sheet
Accounts Receivable (Days) 18 18 18 18 18 18
Inventory (Days) 73 73 73 72 72 73
Accounts Payable (Days) 37 37 37 36 36 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000) - - -
Equity Issued (Repaid) ($000's) 170,000 - - - - -

Income Statement
Reveneue 102,007 118,086 131,345 142,341 150,772 158,311
Cost of Goods Sold (COGS) 39,023 48,004 49,123 53,254 57,310 58,575
Gross Profit 62,984 70,082 82,222 89,087 93,462 99,736
Expenses
Salaries and Benefits 26,427 22,658 23,872 23,002 25,245 25,000
Rent and Overhead 10,963 10,125 10,087 11,020 11,412 10,000
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008
Interest 2,500 2,500 1,500 900 900 900
© Corporate Finance Institute®. All rights reserved. Historical Results Forec
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK
Total Expenses 59,390 53,433 52,664 51,466 53,637 50,908
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825 48,827

Taxes 1,120 4,858 8,483 10,908 11,598 13,672

Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156
© Corporate Finance Institute®. All rights reserved. Historical Results Forec
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK

Balance Sheet
Assets
Cash 167,971 181,210 183,715 211,069 239,550 274,339
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807
Inventory 7,805 9,601 9,825 10,531 11,342 11,715
Property & Equipment 45,500 42,350 40,145 38,602 37,521 37,513
Total Assets 226,376 239,065 240,252 267,319 295,951 331,374

Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938
Debt 50,000 50,000 30,000 30,000 30,000 30,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 35,938
Shareholder's Equity
Equity Capital 170,000 170,000 170,000 170,000 170,000 170,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 125,436
Shareholder's Equity 172,474 184,265 205,340 232,053 260,280 295,436
Total Liabilities & Shareholder's Equity 226,376 239,065 240,252 267,319 295,951 331,374

Check 0.000 0.000 0.000 0.000 0.000 0.000

© Corporate Finance Institute®. All rights reserved. Historical Results Forec
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK

Cash Flow Statement

Operating Cash Flow
Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156
Plus: Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008
Less: Changes in Working Capital 9,003 1,702 775 903 827 375
Cash from Operations 12,971 28,239 37,505 42,354 43,480 49,789

Investing Cash Flow

Investments in Property & Equipment 15,000 15,000 15,000 15,000 15,000 15,000
Cash from Investing 15,000 15,000 15,000 15,000 15,000 15,000

Financing Cash Flow

Issuance (repayment) of debt - - (20,000) - - -
Issuance (repayment) of equity 170,000 - - - - -
Cash from Financing 170,000 - (20,000) - - -

Net Increase (decrease) in Cash 167,971 13,239 2,505 27,354 28,480 34,789
Opening Cash Balance - 167,971 181,210 183,715 211,069 239,550
Closing Cash Balance 167,971 181,210 183,715 211,069 239,550 274,339

Check 0.000 0.000 0.000 0.000 0.000 0.000

© Corporate Finance Institute®. All rights reserved. Historical Results Forec
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK

Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807
Inventory 7,805 9,601 9,825 10,531 11,342 11,715
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 13,584
Change in NWC 9,003 1,702 775 903 827 375

Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 15,008
PPE Closing 45,500 42,350 40,145 38,602 37,521 37,513

Debt & Interest Schedule

Debt Opening 50,000 50,000 50,000 30,000 30,000 30,000
Issuance (repayment) - - (20,000) - - -
Debt Closing 50,000 50,000 30,000 30,000 30,000 30,000
Interest Expense 2,500 2,500 1,500 900 900 900
 Forecast Period
2018 2019 2020 2021
OK OK OK OK

4.5% 4.0% 3.5% 3.0%

37.0% 36.0% 36.0% 35.0%
25,000 25,000 25,000 25,000
10,000 10,000 10,000 10,000
40.0% 40.0% 40.0% 40.0%
3.0% 3.0% 3.0% 3.0%
28.0% 28.0% 28.0% 28.0%

18 18 18 18
73 73 73 73
37 37 37 37
10,000 25,000 10,000 15,000
- (20,000) - -
- - (150,000) -

165,435 172,052 178,074 183,416

61,211 61,939 64,107 64,196
104,224 110,113 113,967 119,220

25,000 25,000 25,000 25,000

10,000 10,000 10,000 10,000
15,005 13,003 17,802 14,681
900 900 300 300
 Forecast Period
2018 2019 2020 2021
OK OK OK OK
50,905 48,903 53,102 49,981
53,319 61,210 60,865 69,239

14,929 17,139 17,042 19,387

38,389 44,071 43,823 49,852
 Forecast Period
2018 2019 2020 2021
OK OK OK OK

317,122 328,798 229,912 279,174

8,158 8,485 8,782 9,045
12,242 12,388 12,821 12,839
32,508 44,505 36,703 37,022
370,030 394,175 288,218 338,080

6,205 6,279 6,498 6,507

30,000 10,000 10,000 10,000
36,205 16,279 16,498 16,507

170,000 170,000 20,000 20,000

163,825 207,897 251,720 301,572
333,825 377,897 271,720 321,572
370,030 394,175 288,218 338,080

0.000 0.000 0.000 0.000

 Forecast Period
2018 2019 2020 2021
OK OK OK OK

38,389 44,071 43,823 49,852

15,005 13,003 17,802 14,681
611 398 511 272
52,783 56,676 61,114 64,261

10,000 25,000 10,000 15,000

10,000 25,000 10,000 15,000

- (20,000) - -
- - (150,000) -
- (20,000) (150,000) -

42,783 11,676 (98,886) 49,261

274,339 317,122 328,798 229,912
317,122 328,798 229,912 279,174

0.000 0.000 0.000 0.000

 Forecast Period
2018 2019 2020 2021
OK OK OK OK

8,158 8,485 8,782 9,045

12,242 12,388 12,821 12,839
6,205 6,279 6,498 6,507
14,196 14,594 15,105 15,377
611 398 511 272

37,513 32,508 44,505 36,703

10,000 25,000 10,000 15,000
15,005 13,003 17,802 14,681
32,508 44,505 36,703 37,022

30,000 30,000 10,000 10,000

- (20,000) - -
30,000 10,000 10,000 10,000
900 900 300 300