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Balance Sheet Plug Computation

The document contains assumptions and pro forma financial statements for two scenarios, one with 50% sales growth and one with no sales growth. It includes income statements and balance sheets for years 0 and 1 under each scenario.

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Nino Natradze
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© © All Rights Reserved
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28 views2 pages

Balance Sheet Plug Computation

The document contains assumptions and pro forma financial statements for two scenarios, one with 50% sales growth and one with no sales growth. It includes income statements and balance sheets for years 0 and 1 under each scenario.

Uploaded by

Nino Natradze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Assumptions

Sales growth 50.0%


CGS % Sales 75.0%
Operating expenses % Sales 15.0%
Interest rate 10.0%
Tax rate 40.0%
Minimum cash % Sales 5.0%
Inventory days 150
Accounts payable days 20
Dividends 30

Income statements
Actual Pro Forma
Year 0 Year 1
Sales 1,000 1,500
Cost of goods sold 800 1,125
Gross profit 200 375
Operating expenses 150 225
Interest expense 10 8
EBT 40 142
Tax 15 57
Net income 25 85

Balance sheets
Year 0 Year 1
Cash 50 75
Inventory 325 462
375 537

Accounts payable 40 62
Notes payable 35 120
Equity 300 355
375 537
Assumptions
Sales growth 0.0%
CGS % Sales 75.0%
Operating expenses % Sales 15.0%
Interest rate 10.0%
Tax rate 40.0%
Minimum cash % Sales 5.0%
Inventory days 150
Accounts payable days 20
Dividends 30

Income statements
Actual Pro Forma
Year 0 Year 1
Sales 1,000 1,000
Cost of goods sold 800 750
Gross profit 200 250
Operating expenses 150 150
Interest expense 10 2
EBT 40 98
Tax 15 39
Net income 25 59

Balance sheets
Year 0 Year 1
Cash 50 62
Inventory 325 308
375 370

Accounts payable 40 41
Notes payable 35 -
Equity 300 329
375 370

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