Woof Junction Inc.

Balance Sheet

2011

2012

2013

2014

ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Total Assets

2011
32 $
9
195
23
259
234
77
157
18
434 $

2012
46 $
6
193
13
258
286
95
191
32
481 $

2013
38 $
6
244
29
317
352
114
238
25
580 $

2014
2015
67 $
193
10
8
248
314
40
51
365
566
528
738
144
190
384
548
28
33
777 $ 1,147

2011
68 $
6
48
122
19
20
161
273
434 $

2012
81 $
15
54
150
22
33
205
276
481 $

2013
94 $
15
75
184
21
37
242
338
580 $

2014
2015
115 $
158
33
32
103
137
251
327
18
81
42
62
311
470
466
677
777 $ 1,147

LIABILITIES & EQUITY

Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity

Income Statement
Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Net Income

2015

2011
2012
2013
2014
2015
$ 1,062 $ 1,252 $ 1,587 $ 1,934 $ 2,519
654
814
1,009
1,190
1,499
408
438
578
744
1,020
254
271
364
454
576
154
167
214
290
444
25
31
38
52
70
129
136
176
238
374
4
3
3
1
4
0
7
10
0
(1)
125
126
163
237
371
55
52
65
92
141
$
70 $
74 $
98 $
145 $
230

Ratios

Ratio Analysis

2012

Woof Junction
2013
2014

2015

Avg

2012

Ooh La Lab
2013
2014

2015

Avg

2012

Specialty Pet Retail Group

2013
2014
2015

Avg

Return on Equity

27.0%

31.9%

36.1%

40.2%

33.8%

29.3%

31.7%

28.5%

23.5%

28.3%

23.0%

22.6%

21.1%

19.6%

21.6%

Return on Equity = Net Income / Avg. Stockholders' Equity

Return on Assets
Financial Leverage
Correction Factor

16.6%
1.67
0.98

18.8%
1.73
0.98

21.5%
1.69
1.00

24.2%
1.68
0.99

20.3%
1.69
0.99

15.2%
2.23
0.87

16.7%
2.09
0.91

16.3%
1.89
0.92

14.0%
1.83
0.91

15.6%
2.01
0.90

13.4%
1.86
0.92

13.1%
1.87
0.92

12.2%
1.89
0.92

11.4%
1.87
0.92

12.5%
1.87
0.92

Return on Assets = De-levered Net Income / Avg. Total Assets

Financial Leverage = Avg. Total Assets / Avg. Stockholders Equity
Correction Factor = Net Income / De-levered Net Income

6.1%
2.74

6.3%
2.99

7.5%
2.85

9.2%
2.62

7.3%
2.80

6.8%
2.23

8.0%
2.08

8.0%
2.03

7.0%
2.00

7.5%
2.08

6.1%
2.19

6.0%
2.18

5.7%
2.15

5.3%
2.14

5.8%
2.16

35.0%
21.6%
10.9%
0.2%
41.3%

36.4%
22.9%
11.1%
0.2%
39.9%

38.5%
23.5%
12.3%
0.1%
38.8%

40.5%
22.9%
14.8%
0.2%
38.0%

37.6%
22.7%
12.3%
0.2%
39.5%

34.6%
20.0%
11.2%
1.1%
36.8%

36.0%
19.4%
13.2%
1.3%
39.5%

36.0%
19.6%
13.0%
1.4%
34.2%

34.2%
19.3%
11.3%
1.6%
40.1%

35.2%
19.6%
12.2%
1.4%
37.7%

36.8%
25.3%
9.1%
2.1%
38.1%

37.0%
25.1%
9.4%
1.9%
38.3%

36.5%
25.3%
8.7%
2.2%
38.4%

36.2%
25.2%
8.4%
2.4%
38.3%

36.6%
25.2%
8.9%
2.2%
38.3%

166.9
4.2
10.9
7.2

264.5
4.6
12.1
7.4

241.8
4.8
11.4
6.2

279.9
5.3
11.5
5.4

238.3
4.7
11.5
6.6

13.3
7.1
14.3
4.3

8.4
6.8
13.1
4.6

8.5
6.4
12.9
4.1

8.9
6.3
13.2
4.3

9.8
6.7
13.4
4.3

17.6
4.6
15.2
9.8

14.6
4.6
14.9
11.1

14.8
4.6
15.4
10.9

15.3
4.5
16.2
10.5

15.6
4.6
15.4
10.6

Accounts Receivables Turnover = Sales / Avg. Accounts Receivable

Inventory Turnover = Cost of Goods Sold / Avg. Inventory
Accounts Payable Turnover = Purchases / Avg. Accounts Payable
Fixed Asset Turnover = Sales / Avg. Net Property, Plant and Equipment

Days Turnover Ratios

Days Receivables
Days Inventory
Days Payables
Net Trade Cycle

2.2
87.0
33.5
55.7

1.4
79.0
30.1
50.3

1.5
75.5
31.9
45.0

1.3
68.4
31.8
37.9

1.6
77.5
31.8
47.2

27.5
51.1
25.5
53.1

43.3
53.4
27.9
68.8

43.0
56.6
28.3
71.3

40.9
58.1
27.7
71.3

38.7
54.8
27.3
66.1

20.7
78.9
24.0
75.7

25.1
79.2
24.5
79.8

24.6
80.1
23.7
81.0

23.8
81.9
22.5
83.2

23.6
80.0
23.7
79.9

Days Receivables = 365 * (Avg. Accounts Receivable / Sales)

Days Inventory = 365 * (Avg. Inventory / Cost of Goods Sold)
Days Payable = 365 * (Avg. Accounts Payable / Purchases)
Net Trade Cycle = Days Receivable + Days Inventory - Days Payable

Liquidity Analysis
Current Ratio
Quick Ratio
CFO-to-Current Liabilities

1.72
0.35
1.18

1.72
0.24
0.64

1.45
0.31
1.15

1.73
0.61
1.11

1.66
0.38
1.02

1.63
0.23
0.93

1.92
0.26
0.86

1.77
0.22
1.01

1.59
0.19
1.11

1.73
0.23
0.98

1.01
0.11
0.87

1.21
0.13
0.98

0.99
0.09
0.76

1.12
0.13
0.86

1.08
0.12
0.87

Current Ratio = Current Assets / Current Liabilities

Quick Ratio = (Cash + Accts Rec) / Current Liabilities
CFO-to-Current Liabilities = Cash from Operations / Avg. Current Laibilities

55.67
52.50

71.33
57.67

290.00
161.50

111.00 132.00
154.67 106.58

6.55
5.12

7.08
6.56

6.43
5.99

4.56
4.59

6.15
5.57

2.43
2.54

2.84
2.43

2.14
2.31

1.83
1.76

2.31
2.26

Interest Coverage = Operating Income before Depreciation / Interest Expense

Cash Interest Coverage = (Cash from Operations + Cash Interest + Cash Taxes) / Cash Interest Paid

0.74
0.08
0.05

0.72
0.06
0.04

0.67
0.04
0.02

1.21
0.53
0.43

1.34
0.58
0.48

1.41
0.67
0.51

1.53
0.71
0.54

1.37
0.62
0.49

1.43
0.67
0.54

1.56
0.78
0.69

1.78
0.86
0.77

1.89
0.95
0.81

1.67
0.82
0.70

Debt to Equity = Total Liabilities / Total Stockholders Equity

Long-Term-Debt to Equity = Total Long-Term Debt / Total Stockholders Equity
Long-Term Debt to Tangible Assets = Total Long-Term Debt / (Total Assets - Intangible Assets)

14.9%
38.0%

14.3%
38.0%

13.2%
38.0%

16.8%
38.0%

14.3%
38.4%

13.3%
38.6%

13.2%
38.5%

15.1%
38.3%

Return on Assets
Return on Sales
Asset turnover
Profitability
Gross margin
SG&A as % of Sales
Operating Margin
Interest Expense as % of Sales
Effective Tax Rate
Asset Turnover Ratios
Accounts Receivable Turnover
Inventory Turnover
Accounts Payable Turnover
Fixed Asset Turnover

Interest Coverage
Cash Interest Coverage
Debt to Equity
Long-Term-Debt to Equity
Long-Term Debt to Tangible Assets
Other Information
Sales Growth
Statutory Tax Rate
De-levered Net Income
Purchases
Weighted Avg Depreciation Rate
Weighted Avg Interest Rate

Other Ratios
Sales Growth
Sales per Square Foot

0.69
0.12
0.07

0.71
0.08
0.05

17.9%
26.8%
21.9%
30.2%
38.0%
38.0%
38.0%
38.0%
76 $ 100 $ 146 $ 232
812 $ 1,060 $ 1,194 $ 1,565
10.9%
10.9%
11.1%
10.6%
14.6%
14.0%
5.1%
8.1%

24.2%
38.0%

0.17891 0.26757 0.21865 0.30248

389
438
481

0.2419
436

$
$

14.8%
38.0%

10.9%
10.4%

Page 2

14.0%
38.5%

Return on Sales = De-levered Net Income / Sales

Asset turnover = Sales / Avg. Total Assets

Gross Margin = (Sales - Cost of Goods Sold) / Sales

SG&A as a % of Sales = SG&A Expense / Sales
Operating Margin = Operating Income / Sales
Interest Expense as % of Sales = Interest Expense / Sales
Effective Tax Rate = Income Taxes / Pre-tax Income

Sales Growth = Change in Sales / Prior Year Sales

Federal Statutory Rate + State and Foreign Statutory Rates (excludes permanent differences)
De-levered Net Income = Net Income + (Interest Exp. * (1 - Statutory Tax Rate))
Purchases = Ending Inventory + COGS Beginning Inventory
Weighted Avg Depreciation Rate = Depreciation & Amortization / (Avg. Gross PP&E + Avg. Intangible Assets)
Weighted Avg Interest Rate = Interest Expense / Avg. Long-Term Debt

Woof Junction Inc.

Balance Sheet

2011

2012

2013

2014

2015

ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Total Assets

2011
0.07
0.02
0.45
0.05
0.60
0.54
0.18
0.36
0.04
1.00

2012
0.10
0.01
0.40
0.03
0.54
0.59
0.20
0.40
0.07
1.00

2013
0.07
0.01
0.42
0.05
0.55
0.61
0.20
0.41
0.04
1.00

2014
0.09
0.01
0.32
0.05
0.47
0.68
0.19
0.49
0.04
1.00

2015
0.17
0.01
0.27
0.04
0.49
0.64
0.17
0.48
0.03
1.00

LIABILITIES & EQUITY

Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity

2011
0.16
0.01
0.11
0.28
0.04
0.05
0.37
0.63
1.00

2012
0.17
0.03
0.11
0.31
0.05
0.07
0.43
0.57
1.00

2013
0.16
0.03
0.13
0.32
0.04
0.06
0.42
0.58
1.00

2014
0.15
0.04
0.13
0.32
0.02
0.05
0.40
0.60
1.00

2015
0.14
0.03
0.12
0.29
0.07
0.05
0.41
0.59
1.00

Income Statement

2011
1.00
0.62
0.38
0.24
0.15
0.02
0.12
0.00
0.00
0.12
0.05
0.07

2012
1.00
0.65
0.35
0.22
0.13
0.02
0.11
0.00
0.01
0.10
0.04
0.06

2013
1.00
0.64
0.36
0.23
0.13
0.02
0.11
0.00
0.01
0.10
0.04
0.06

2014
1.00
0.62
0.38
0.23
0.15
0.03
0.12
0.00
0.00
0.12
0.05
0.07

2015
1.00
0.60
0.40
0.23
0.18
0.03
0.15
0.00
0.00
0.15
0.06
0.09

Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Net Income

Avg
Avg
0.10
0.01
0.37
0.05
0.53
0.61
0.18
0.43
0.04
1.00
Avg
0.15
0.03
0.12
0.30
0.04
0.06
0.40
0.60
1.00
Avg
1.00
0.62
0.38
0.23
0.15
0.03
0.12
0.00
0.00
0.12
0.05
0.07

Assumptions Underlying The Forecasting Analysis

Woof Junction Inc.
Assumptions for Projected Fin Stmts

2011

2012

2013

2014

2015

1
2016

2
2017

3
2018

4
2019

5
2020

6
2021

7
2022

8
2023

9
2024

10
2025

I/S Projection Assumptions

Sales growth
Cost of goods sold
Selling, General, and Admin Exp
Depreciation and Amortization
Interest Expense
Other Gains and Losses
Income Tax Expense

Historical avg. growth for 5 years, then industry avg.

Historical average ratio of cgs / sales (common size IS)
Historical avg. ratio of sg&a / sales (common size IS)
Historical avg. depreciation rate of avg. gross pp&e
Forecasted interest rate (2015)
Historical avg. ratio of G&L / sales (common size IS)
Historical statutory income tax rate

0.242
0.622
0.230
0.109
0.081
0.002
0.380

0.242
0.622
0.230
0.109
0.081
0.002
0.380

0.242
0.622
0.230
0.109
0.081
0.002
0.380

0.242
0.622
0.230
0.109
0.081
0.002
0.380

0.242
0.622
0.230
0.109
0.081
0.002
0.380

0.050
0.622
0.230
0.109
0.081
0.002
0.380

0.050
0.622
0.230
0.109
0.081
0.002
0.380

0.050
0.622
0.230
0.109
0.081
0.002
0.380

0.050
0.622
0.230
0.109
0.081
0.002
0.380

0.050
0.622
0.230
0.109
0.081
0.002
0.380

B/S Projection Assumptions

Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Gross PP&E
Accumulated Depreciation
Intangible Assets
Total asset turnover

Historical
Historical
Historical
Historical
Historical
Historical
Historical
Historical

BS)
BS)
BS)
BS)
BS)
BS)
BS)

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

0.098
0.013
0.373
0.045
0.613
0.184
0.043
2.799

Accounts Payable
Taxes Payable
Other Current Liabilities
Long-term Debt
Other Liabilities
Total equities

Historical average
Historical average
Historical average
2015 ratio of debt
Historical average
Plug (TA - TL)

size BS)
size BS)
size BS)

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

0.155
0.028
0.121
0.071
0.057

average
average
average
average
average
average
average
average

ratio
ratio
ratio
ratio
ratio
ratio
ratio

of
of
of
of
of
of
of

account
account
account
account
account
account
account

/
/
/
/
/
/
/

TA
TA
TA
TA
TA
TA
TA

(common
(common
(common
(common
(common
(common
(common

ratio of account / TA (common

ratio of account / TA (common
ratio of account / TA (common
/ TA (common size BS)
ratio of account / TA (common

size
size
size
size
size
size
size

size BS)

Supplemental Calculations
Calculation of smoothed total assets
Average total assets (initial est)
Ending total assets (initial est)
Annual compound growth rate
Growth rate in total assets
Ending total assets (final est)
Average total assets (final est)

Accumulated depreciation
Beginning balance
+ Depreciation expense
- Ending balance
Retirements (plug)

1,147

1,147

$
$

1,118
1,088

$
$

1,388
1,688

$
$

1,724
1,760

$
$

2,141
2,522

$
$

$
$

0.18
1,357
1,252

$
$

0.18
1,605
1,481

$
$

0.18
1,899
1,752

$
$

0.18
2,247
2,073

$
$

2,658
2,795
0.18
0.18
2,658
2,453

$
$

2,791
2,787

$
$

2,931
3,074

$
$

3,077
3,081

$
$

3,231
3,382

$
$

$
$

0.05
2,791
2,725

$
$

0.05
2,931
2,861

$
$

0.05
3,077
3,004

$
$

0.05
3,231
3,154

$
$

3,393
3,404
0.05
0.05
3,393
3,312

77
31
(95)
13

95
38
(114)
19

114
52
(144)
22

144
70
(190)
24

190
85
(250)
25

250
99
(296)
53

296
117
(350)
63

350
138
(415)
74

415
163
(490)
88

490
182
(515)
157

515
191
(541)
165

541
200
(568)
173

568
210
(596)
182

596
221
(626)
191

Gross PP&E
Ending balance
+ Retirements
- Beginning balance
Net Purchases (plug)

286
13
(234)
65

352
19
(286)
85

528
22
(352)
198

738
24
(528)
234

831
25
(738)
118

984
53
(831)
205

1,164
63
(984)
243

1,377
74
(1,164)
287

1,629
88
(1,377)
340

1,710
157
(1,629)
239

1,796
165
(1,710)
250

1,886
173
(1,796)
263

1,980
182
(1,886)
276

2,079
191
(1,980)
290

Dividends and Repurchases (net of stock issues)

Beginning balance Stockholders' Equity
+ Net Income
- Ending balance Stockholders' Equity
Dividends and net share repurchases (plug)

273
74
(276)
71

276
98
(338)
36

338
145
(466)
17

466
230
(677)
19

677
225
(771)
131

771
284
(913)
143

913
357
(1,080)
190

1,080
448
(1,277)
250

1,277
562
(1,511)
328

1,511
583
(1,587)
508

1,587
612
(1,666)
533

1,666
643
(1,749)
560

1,749
675
(1,837)
588

1,837
709
(1,929)
617

Page 5

Woof Junction Inc.

Projected Fin Stmts
ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Total Assets
LIABILITIES & EQUITY
Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity
INCOME STATEMENT
Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Net Income

2011

2012

32
9
195
23
259
234
77
157
18
434

68
6
48
122
19
20
161
273
434

2013

46
6
193
13
258
286
95
191
32
481

81
15
54
150
22
33
205
276
481

2014

38
6
244
29
317
352
114
238
25
580

94
15
75
184
21
37
242
338
580

1
2016

2015

2
2017

3
2018

4
2019

67
10
248
40
365
528
144
384
28
777

193
8
314
51
566
738
190
548
33
$ 1,147

133
17
506
61
717
831
250
581
59
$ 1,357

157
20
599
73
849
984
296
687
69
$ 1,605

186
24
708
86
1,004
1,164
350
813
82
$ 1,899

115
33
103
251
18
42
311
466
777

158
32
137
327
81
62
470
677
$ 1,147

210
38
164
412
96
78
586
771
$ 1,357

248
45
194
488
113
92
693
913
$ 1,605

294
54
230
577
134
109
820
1,080
$ 1,899

220
28
838
102
1,188
1,377
415
962
97
$ 2,247

347
63
272
682
159
129
970
1,277
$ 2,247

2011
2012
2013
2014
2015
2016
2017
2018
2019
$ 1,062 $ 1,252 $ 1,587 $ 1,934 $ 2,519 $ 3,128 $ 3,885 $ 4,825 $ 5,992
654
814
1,009
1,190
1,499
1,947
2,418
3,003
3,730
408
438
578
744
1,020
1,181
1,467
1,822
2,262
254
271
364
454
576
719
892
1,108
1,376
154
167
214
290
444
463
575
714
886
25
31
38
52
70
85
99
117
138
129
136
176
238
374
377
476
597
748
4
3
3
1
4
7
8
10
12
0
7
10
0
(1)
7
9
11
14
125
126
163
237
371
363
458
576
722
55
52
65
92
141
138
174
219
275
$
70 $
74 $
98 $ 145 $
230 $
225 $
284 $
357 $
448

STATEMENT OF CASH FLOWS

Operations
Net Income
Depreciation and Amortization
Other Gains and Losses
Chg. in Accounts Receivable, Net
Chg. in Inventory
Chg. in Other Current Assets
Chg. in Accounts Payable
Chg. in Taxes Payable
Chg. in Other Current Liabilities
Chg. in Other Liabilities
Net Cash from Operations

2011

2012
$

74
31
7
3
2
10
13
9
6
6
161

2013
$

98 $
38
10
0
(51)
(16)
13
0
21
(6)
107

2014
145 $
52
0
(4)
(4)
(11)
21
18
28
5
250

2015
230 $
70
(1)
2
(66)
(11)
43
(1)
34
21
321

2016
225 $
85
7
(9)
(192)
(10)
52
6
27
9
200

2017
284 $
99
9
(3)
(93)
(11)
38
7
30
5
366

2018

2019

357 $
117
11
(4)
(110)
(13)
45
8
36
6
453

448
138
14
(4)
(130)
(16)
54
10
42
6
562

Investing
Acquisition of PP&E
Change in Other Assets
Net Cash from Investing Activities

(65)
(14)
(79)

(85)
7
(78)

(198)
(3)
(201)

(234)
(5)
(239)

(118)
(26)
(144)

(205)
(11)
(216)

(243)
(13)
(255)

(287)
(15)
(302)

Financing
Net Proceeds from Issuing Debt
Dividends
Net Cash from Financing Activities

3
(71)
(68)

(1)
(36)
(37)

(3)
(17)
(20)

63
(19)
44

15
(131)
(116)

18
(143)
(125)

21
(190)
(169)

25
(250)
(226)

Change in cash

14

(8)

29

126

(60)

24

29

34

Change in cash (BS)

14

(8)

29

126

(60)

24

29

34

5
2020

6
2021

7
2022

8
2023

9
2024

10
2025

260
34
991
120
1,405
1,629
490
1,138
115
$ 2,658

273
35
1,041
126
1,475
1,710
515
1,195
121
$ 2,791

287
37
1,093
132
1,549
1,796
541
1,255
127
$ 2,931

301
39
1,147
139
1,627
1,886
568
1,318
133
$ 3,077

316
41
1,205
146
1,708
1,980
596
1,384
140
$ 3,231

411
75
321
807
188
152
1,147
1,511
$ 2,658

431
79
337
848
197
160
1,205
1,587
$ 2,791

453
83
354
890
207
168
1,265
1,666
$ 2,931

476
87
372
935
217
176
1,328
1,749
$ 3,077

500
91
390
981
228
185
1,395
1,837
$ 3,231

332
43
1,265
153
1,793
2,079
626
1,453
147
$ 3,393

524
96
410
1,030
240
194
1,464
1,929
$ 3,393

2020
2021
2022
2023
2024
2025
$ 7,442 $ 7,814 $ 8,204 $ 8,615 $ 9,045 $ 9,498
4,632
4,863
5,107
5,362
5,630
5,912
2,810
2,950
3,098
3,253
3,415
3,586
1,709
1,795
1,884
1,979
2,078
2,181
1,101
1,156
1,213
1,274
1,338
1,405
163
182
191
200
210
221
937
974
1,023
1,074
1,127
1,184
14
16
16
17
18
19
17
18
19
20
21
22
906
940
987
1,037
1,089
1,143
344
357
375
394
414
434
$
562 $
583 $
612 $
643 $
675 $
709

2020
$

562 $
163
17
(5)
(153)
(19)
64
12
50
6
696

2021
583 $
182
18
(2)
(50)
(6)
21
4
16
(10)
755

2022
612 $
191
19
(2)
(52)
(6)
22
4
17
(11)
793

2023
643 $
200
20
(2)
(55)
(7)
23
4
18
(11)
833

2024
675 $
210
21
(2)
(57)
(7)
24
4
19
(12)
874

2025
709
221
22
(2)
(60)
(7)
25
5
20
(13)
918

(340)
(18)
(357)

(239)
(6)
(244)

(250)
(6)
(256)

(263)
(6)
(269)

(276)
(7)
(283)

(290)
(7)
(297)

29
(328)
(299)

9
(508)
(498)

10
(533)
(523)

10
(560)
(549)

11
(588)
(577)

11
(617)
(605)

40

13

14

14

15

16

40

13

14

14

15

16

Woof Junction Inc.

1
2016

Valuation Analysis
Discount rate

2
2017

3
2018

4
2019

5
2020

6
2021

7
2022

8
2023

15%

Residual Income Valuation Model

Actual earnings
Expected earnings (r * SE)
Abnormal earnings
PV of AE at end of 2015

$
$

Book value of equity at end of 2015

PV of AE during forecast period
Terminal value:
Base AE for terminal growth
Terminal growth rate for AE
PV of perpet AE at end of 2025
PV of perpet AE at end of 2015
Estimated market value
Number of shares at end of 2015
Estimated value per share

225
102
123
107

$
$

284
116
169
127

$
$

357
137
220
145

190
125

448
162
286
163

250
143

562
192
370
184

328
163

583
227
356
154

508
219

612
238
374
141

533
200

643
250
393
128

677
1,375

433
5.00%
4,549
1,124
$ 3,176
143
$ 22.21

Dividend Valuation Model

Dividends
PV of dividends at end of 2015
PV of divs during forecast period
Terminal value:
Base dividend for terminal growth
Terminal dividend growth rate
PV of dividends at end of 2025
PV of dividends at end of 2015
PV of dividends in arrears
Number of shares at end of 2015

131
114

143
108
1,575

617
5.00%
6,477
1,601
$ 3,176
143

560
183

Estimated value per share

$ 22.21

Free Cash Flow Valuation

Operating Cash Flow
Investing Cash Flow
Free Cash Flow
PV of FCF at end of 2015
PV of FCF during forecast period
Terminal value:
Base FCF for terminal growth
Terminal dividend growth rate
PV of FCF at end of 2025
PV of FCF at end of 2015
PV of FCF in arrears
Initial financial assets
Estimated value of equity
Number of shares at end of 2015
Estimated value per share

1992
200
(239)

1993
366
(144)

1994
453
(216)

1995
562
(255)

1996
696
(302)

1997
755
(357)

1998
793
(244)

1999
833
(256)

(39)
(34)

222
168

237
156

306
175

394
196

398
172

549
206

576
188

1,557
635
5.00%
6,672
1,649
3,206
$
193
3,399
143
$ 23.77

9
2024

$
$

10
2025

675
262
413
117

588
167

709
276
433
107

617
152

2000
874
(269)

2001
918
(283)

605
172

635
157