year ended in dec 95

next 18 months

sales
net income
prev 3 years growth
1991 installment
1995 due
spent during 1996
dep in 1997
by 1996 decrease in inventory
significantly lower than in end of 1995
by end of 1997
1996 cash balance

loan given in 2 parts in

96 and 97
loan to be repaid in 4 equal installments
interest
Pro-forma financial statement
96 and 97
income
sheet and balane sheet at the end of
1996 and 1997

23505000
190000
20%
125000
875000
2000000
5% of warehouse cost
1625000 only till early 97 warehouse completion
2190000
inventory level same proportional to sales as
in 1995
3% of sales for next 2 years
1st installment after 1 yr of completion of
warehouse
10%
20% increase sales

from 23505000 to 28206000 to 33847000

income statement
Sales
cost of sales
GP
S&A
Dep
Net interest expense
pre tax income
income taxes

1993
16230
9430
6800
5195
160
119
1326
546

1994
20355
11898
8457
6352
180
106
1819
822

1995
23505
13612
9893
7471
213
94
2115
925

1996
28206
16403
11803
8932
213
99
2559
1110

1997
33847
19684
14163
10718
333
140
2972
1289

net income
dividends

780
155

997
200

1190
240

1449
290

1683
337

Retained earnings

625

797

950

1159

1346

1993

1994

1995

1996

1997

508
2545
1630
4683
3232
1335
1897
6580

609
3095
1838
5542
3795
1515
2280
7822

706
3652
2190
6548
4163
1728
2435
8983

846
4365
1625
6836
6163
1941
4222
11058

1015
5238
3154
9407
6563
2274
4289
13696

125
1440
1653
3218
750
1135
3880
5015
8983

356
125
1792
1986
3903
625
1135
5039
6174
11058

1018
125
2150
2383
4658
500
1135
6385
7520
13696

Balance Sheet
Assets
Cash
A/c receivable
Inventory
TCA
Gross plant equipment
Acc Dep
Net block
Total Assets
Liabilities
Short term loan
Current long term debt
A/c payable
Acc expenses
TCL
Long term debt
Common stock
Retained earnings
Total s/h equity
Total liabilities

125
1042
1145
2312
1000
1135
2133
3268
6580

125
1325
1432
2882
875
1135
2930
4065
7822

Cash flow statement

1996
Cash flow from operating activities
PBT
2559
Add: Dep
213
Add: interest paid
99
Change in inventory
565
Change in a/c receivable
-713
Change in a/c payable
352
Less tax
-1110
Change in acc expense
Net cash flow

333
2298

1997
2972
333
140
-1529
-873
358
-1289
397
510

Cash flow from investing activities

Gross plant equipment
-2000
Net cash flow
-2000
Cash flow from financing activities
Interest paid
-99
Short term borrowing
356
Long term borrowing
-125
Dividend
-290
Net cash flow
-158
Net cash flow

140

117
174

-400
-400
-140
661
-125
-337
59
169