Lecture - 5 - CFI-3-statement-model-complete
Lecture - 5 - CFI-3-statement-model-complete
Table of Contents
3 Statement Model
Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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© Corporate Finance Institute®. All rights reserved. Historical Results
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016
Balance Sheet Check OK OK OK OK OK
Assumptions
Income statement 38 41 37 37 38
Revenue Growth (% Change) 15.8% 11.2% 8.4% 5.9%
Cost of Goods Sold (% of Revenue) 38.3% 40.7% 37.4% 37.4% 38.0%
Salaries and Benefits ($000's) 26,427 22,658 23,872 23,002 25,245
Rent and Overhead ($000's) 10,963 10,125 10,087 11,020 11,412
Depreciation & Amortization (% of PP&E Open Bal) 39.0% 39.9% 40.6% 41.2% 41.7%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0% 3.0% 3.0%
Tax Rate (% of Earnings Before Tax) 31.2% 29.2% 28.7% 29.0% 29.1%
Balance Sheet
Accounts Receivable (Days) 18 18 18 18 18
Inventory (Days) 73 73 73 72 72
Accounts Payable (Days) 37 37 37 36 36
Capital Expenditures ($000's) 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
Cost of Goods Sold (COGS) 39,023 48,004 49,123 53,254 57,310
Gross Profit 62,984 70,082 82,222 89,087 93,462
Expenses
Salaries and Benefits 26,427 22,658 23,872 23,002 25,245
Rent and Overhead 10,963 10,125 10,087 11,020 11,412
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080
Interest 2,500 2,500 1,500 900 900
Total Expenses 59,390 53,433 52,664 51,466 53,637
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825
Balance Sheet
Assets
Cash 167,971 181,210 183,715 211,069 239,550
Accounts Receivable 5,100 5,904 6,567 7,117 7,539
Inventory 7,805 9,601 9,825 10,531 11,342
Property & Equipment 45,500 42,350 40,145 38,602 37,521
Total Assets 226,376 239,065 240,252 267,319 295,951
Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671
Debt 50,000 50,000 30,000 30,000 30,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671
Shareholder's Equity
Equity Capital 170,000 170,000 170,000 170,000 170,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280
Shareholder's Equity 172,474 184,265 205,340 232,053 260,280
Total Liabilities & Shareholder's Equity 226,376 239,065 240,252 267,319 295,951
Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539
Inventory 7,805 9,601 9,825 10,531 11,342
Accounts Payable 3,902 4,800 4,912 5,265 5,671
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210
Change in NWC 9,003 1,702 775 903 827
Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602
Plus Capex 15,000 15,000 15,000 15,000 15,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080
PPE Closing 45,500 42,350 40,145 38,602 37,521
39 40 41 41 42
Debt & Interest Schedule
Debt Opening 50,000 50,000 50,000 30,000 30,000
Issuance (repayment) - - (20,000) - -
Debt Closing 50,000 50,000 30,000 30,000 30,000
Interest Expense 2,500 2,500 1,500 900 900
COLGATE
Hostorical Data
INCOME STATEMENT
15-16 16-17 17-18 18-19 19-20
Revenue from Operations 4613 4489 4299 4432 4487
Other Income 39 41 38 37 49
Total Revenue 4652 4530 4337 4469 4536
Expenses
Cost of Materials Consumed 1145 1155 1188 1328 1350
Changes in Inventories 459 514 156 6 -4
Employee Benefits 269 288 305 295 332
Finance Cost 1 1 1 2 9
Depre/Amortization 111 133 156 159 197
Other Exp 1465 1273 1279 1371 1418
Total Expenses 3450 3364 3085 3161 3302
BALANCE SHEET
ASSETS 15-16 16-17 17-18 18-19 19-20
Fixed Assets 1008 2232 3270 4701 5721
Capital WIP 0 166 158 198 190
Investments 30 31 31 31 18
Stock/Inventories 292 292 226 248 296
Debtors/Accounts Receivable 101 129 201 209 132
Cash/Bank Balances 288 294 456 399 421
Loans & Advances 144 288 344 348 421
1863 3432 4686 6134 7199
LIABILITIES
Current Liabilities 323 660 559 519 350
Creditors/Accounts Payable 200 300 400 500 550
Debt 0 0 0 77 0
Provisions 110 76 79 82 109
Shareholders Equity
Equity 28 28 28 28 28
Reserves & Surplus 1202 2368 3620 4928 6162
1863 3432 4686 6134 7199
diff 0 0 0 0 0
1308
WORKING CAPITAL 15-16 16-17 17-18 18-19 19-20
94 1374
20-21
5679
97
18
stock/COGS*365=33 281
BR/Reveu*365=13 186
=x/4532*365 = 13 1,734
=x=13/365*4532 379
161.4137 8374
325
BP/COGS*365=47 401
0
85
28
7536
8,374
0
20-21
20-21
1374
196
1,178
42
93
-
135
1,313
421
1,734
Projected Data Assumption
300 275 250 225 25 Assuming CL are paid 25 lacs in each year
401 401 401 401 47 Assuming avg 47 days time
0 0 0 0 0 Assuming no debt is availed
72 71 71 70 Assuming 50% of the provisions are paid in CY + new prov
- 1 - 8 - 5 - 2
1,375 1,383 1,381 1,379
0 0 0 0
are paid in CY + new provisions are made for Rs.30 lacs for 20-21 & 21-22 & Rs.35 lacs for rest of the projected years
Amar Raja Batteries Limited
Assumptions
INCOME STATEMENT
Expenses
Employee Benefit 5% Assuming 5% of total revenue
Finance Costs 6.00 Assuming 6
Depren & Amortization 4% Assumin g4% of total revenue
Other Expenses 12% Assuming 12% of total revenue
Profit
BALANCE SHEET
ASSETS
Fixed Assets
Tangibles & Intangibles Assuing 20% addition from Capital WIP & Deducting cy depreciation
Capital WIP Flowing from FA schdule
Non Current Investments Assuming addition of 2 lacs every 2 years
Other Non Current Assets Assuing 25% additions and 35% deductions of op balance
Current Assets
Investments Assuming constant
Inventories 85 Assuming 85 days
Trade Receivables 40 Assuming Debtors term 40days
Cash & Cash Equivalents
Short Term Loans & Advances
Other Current Assets Assuing 25% additions and 35% deductions of op balance
Total Assets
LIABILITIES
Non Current Liabilities
Long Term Borrowing 10% Assuming 10% repayment every year
Deferred Tax Liabities Assuming it is constant
Other Long Term Liabilities Assuming 10% increase + 25% decrease
Long Term Provisions Assuming 10% increase + 25% decrease
Current Liabilities
Short Term Borrowing Assuming constant
Trade Payables 45 Assuming Creditors term 45 days
Other Current Liabilities 29 Assuming Credit term 29 days
Short Term Provisions 10 assuming 10% decrease
Shareholders Equity
Equity Capital No equity is issued
Reserves & Surplus
Total
diff
WORKING CAPITAL
RATIOS
ducting cy depreciation
f op balance
f op balance
Prepare a cash budget in respect of 6 months from July to December from the information given in the tabl
Overheads
Month Credit Sales Materials Wages Production Admin Selling
April 100000 40000 10000 4400 3000 1600
May 120000 60000 11200 4800 2900 1700
June 80000 40000 8000 5600 3000 1500
July 100000 60000 8000 4600 2900 1400
August 120000 70000 10000 5600 3000 1900
Sept 140000 80000 10000 5400 3000 2000
Oct 160000 90000 10000 5800 3100 2250
Nov 180000 100000 11000 6000 3100 2150
Dec 200000 110000 11600 6400 2200 2300
e on september 1
ble Rs.2000 per month from completion date
Less Payments
Plant & Machinery Installed
R&D Extension 2000
Hire Purchase Payments 4000 4000
Commission @5% on Cr Sales 5% 4000 5000
Suppliers payment - for Materials 3 40000 60000
Payment of Overheads
Production 5600 4600
Admin 3000 2900
Selling 1500 1400
Distribution 700 900
R&D 1200 1200
Wages Payment\ 8000 8000
Income Tax
Preference shares dividend
10% calls on share capital of Rs.4 lacs 40000
Total Payments 108000 90000
40000
2000 2000 2000 2000
4000 4000 4000 4000
6000 7000 8000 9000
40000 60000 70000 80000
BALANCE SHEET
Expenses
Cost of Materials Consumed 27,652 37,080
Purchase of Stock in Trade 3,946 4,762
Changes in Inventories -252 842
Operating & Direct Expenses 454 475
Employee Benefit Expenses 3,764 3,967
Finance Costs 1,569 1,744
Depreciation & Amortization 3,037 3,102
Other Expenses 8,083 9,251
Total Expenses 48,254 61,224
Taxes 57.06 92.63
Profit After Tax 1,725 -135
Current Liabilities
Short Term Borrowings 5,159 3,100
Trade Payables 11,462 14,226
Other current Liabilities 4,440 6,031
Short Term Provisions 477 863
Total Equity & Liabilities 53510 55387
ASSETS
Fixed Assets
Tangible Assets 17,897 18,193
Intangible Assets 2,876 3,411
Capital WIP 1,903 1,371
Current Assets
Current Investments 2,437 2,503
Inventories 5,553 5,670
Trade Receivables 2,128 3,480
Short Term Loans & Advances 216 140
Other Current Assets 2,096 2,383
Cash & Cash Equivalents 327 795
Total Assets 53,510 55,387
diff 0 0
0 40 46 0
759 862 1,550 -500
-98 1,242 140 13
272 488 -398 18
0 0 0 0
-100 -50 -25 -50
-200 -100 -125 -125
10 -90 -25 -110
84 84 84 84
-100 -100 -125 -135
10 -20 -100 -200
-450 -1000 -1000 500
-250 -800 -900 600
-200 -200 -200 200
-5000 200 300 -1000
-10 12 15 17
520 100 -250 -350
0 0 0 0
-200 -300 -100 -100
-100 -50 -25 -50
-200 -100 -125 -125
1500000 750000000
500000 500000000
800000 240000000
1000000 100000000
15262 15821
Net Profit after Tax 559 559
Add NON Cash * Non Operating Exp
Depre
Finance Cost
Transfer to R/S
Less Changes in WC -935 935 -935
Financing Activities
repayment of borrow -530
olt liab -949
Finance cost
Investment Actvities
asssets -295
intangible -535
transafer of capex 531
investment sale 598
LT L&A 248
onc asset -208 339
471
on cash balance 327
798
795
diff 3