How Financial Model Work?

A
Year
Income Statement
Sales
Cost of Goods Sold
Interest payments on debt
Interest earned on cash and marketable securities
Depreciation
Profit before tax
Taxes @ 30%
Profit After Tax
Dividends @ 40%
Retained Earnings

B
0
1250
700
2.7
2.7
100
450
135
315
126
189

Balance Sheet
Cash and Marketable securities
Current Assets
Fixed Assets
At Cost
Depreciation
Net Fixed Assets
Total Assets

1300
300
1000
1255

Current Liabilities
Debt
Stock
Accumulated Retained Earnings
Total Liabilities and Equity

125
380
500
250
1255

30
225

Assumption: the firm expects its sales to grow at a rate of 10% per year.

SALES GROWTH

SALES GROWTH
CURRENT ASSET/SALES
CURRENT LIABILITES/SALES
NET FIXED ASSET/SALES
COST OF GOODS SOLD/SALES
DEPRICIATION RATE
ITEREST RATE ON DEBT
INTEREST PAID ON CASH ANS SECURITIES
TAX RATE
DIVIDEND PAYOUT RATIO
debt
stock

10%
18%
10%
80%
56%
10%
0.71%
9%
30%
40%
30%
40%

How Financial Model Work?

A
Year
Income Statement
Sales
Cost of Goods Sold
Interest payments on debt
Interest earned on cash and marketable securities
Depreciation
Profit before tax
Taxes @ 30%
Profit After Tax
Dividends @ 40%
Retained Earnings

B
0
1250
700
2.926
2.4
100
449.474
135
314.474
126
188.474

Balance Sheet
Cash and Marketable securities
Current Assets
Fixed Assets
At Cost
Depreciation
Net Fixed Assets
Total Assets

1300
300
1000
1255

Current Liabilities
Debt
Stock
Accumulated Retained Earnings
Total Liabilities and Equity

125
380
500
250
1255

30
225

Assumption: the firm expects its sales to grow at a rate of 10% per year.

1375
770
1
5
142
466
140
326
130
196

90
248
1542
442
1100
1438
138
380
500
421
1439

SALES GROWTH
CURRENT ASSET/SALES
CURRENT LIABILITES/SALES
NET FIXED ASSET/SALES
COST OF GOODS SOLD/SALES
DEPRICIATION RATE
ITEREST RATE ON DEBT
INTEREST PAID ON CASH ANS SECURITIES
TAX RATE
DIVIDEND PAYOUT RATIO
debt
stock

10%
18%
10%
80%
56%
10%
0.77%
8%
30%
40%
30%
40%

How Financial Model Work?

A
Year
Income Statement
Sales
Cost of Goods Sold
Interest payments on debt
Interest earned on cash and marketable securities
Depreciation
Profit before tax
Taxes @ 30%
Profit After Tax
Dividends @ 40%
Retained Earnings

B
0
1250.00
700.00
2.93
2.40
100.00
449.47
135.00
314.47
126.00
188.47

Balance Sheet
Cash and Marketable securities
Current Assets
Fixed Assets
At Cost
Depreciation
Net Fixed Assets
Total Assets

1300.00
300.00
1000.00
1255.00

Current Liabilities
Debt
Stock
Accumulated Retained Earnings
Total Liabilities and Equity

125.00
380.00
500.00
250.00
1255.00

30.00
225.00

Assumption: the firm expects its sales to grow at a rate of 10% per year.

1375.00
770.00
1.64
6.70
142.11
467.96
140.00
327.96
131.00
196.96

1512.50
847.00
2.01
11.55
168.12
506.92
152.00
354.92
142.00
212.92

1663.75
1830.13
2013.14 =G6*(1+$P$3)
931.70
1024.87
1127.36
2.42
2.88
3.39
12.71
13.98
15.37
197.97
232.18
271.33
544.36
584.16
626.43
163.00
175.00
188.00
381.36
409.16
438.43
153.00
164.00
175.00
228.36
245.16
263.43

137.50
247.50

151.25
272.25

166.38
299.48

183.01
329.42

201.31
362.36

1542.11
442.11
1100.00
1485.00

1820.22
610.22
1210.00
1633.50

2139.19
808.19
1331.00
1796.85

2504.48
1040.38
1464.10
1976.54

2922.22
1311.71
1610.51
2174.19

137.50
425.54
500.00
421.96
1485.00

151.25
521.83
500.00
460.42
1633.50

166.38
629.87
500.00
500.61
1796.85

183.01
748.88
500.00
544.64
1976.54

201.31
880.02
500.00
592.85
2174.19

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SALES GROWTH
CURRENT ASSET/SALES
CURRENT LIABILITES/SALES
NET FIXED ASSET/SALES
COST OF GOODS SOLD/SALES
DEPRICIATION RATE
ITEREST RATE ON DEBT
INTEREST PAID ON CASH ANS SECURITIES
TAX RATE
DIVIDEND PAYOUT RATIO
debt
stock

10%
18%
10%
80%
56%
10%
0.77%
8%
30%
40%
30%
40%