Science Technology, Inc.

Growth Rate Sales

COGS
R&D Expenses
G&A Expenses
Tax Rate
Accounts Rec.
Inventory
Accounts Payable
Accruals
Sales 1984
Interest Rate
Begin Notes Payable
Begin LTD
Begin Equity
Debt as %of Cap

12.0%

40.0%

227
8.2%
14
25
164
15%

258.78
8.2%
16.10712
25
164

284.7488
8.2%
24.21961
25
164

318.9187
8.2%
35.13464
25
164

357.1889
8.2%
47.10729
25
164

Science Technology Company

Financial Projection, 1985 - 1989 (in millions)
INCOME STATEMENT
1985
Net Sales
COGS
Gross Profit
General & Admin. Exp.
R&D Expense
Other G&A Exp.
Total G&A
Net from Operations
Interest Expense
Net Inc. Before Taxes
Taxes
Net Income

1986

1987

1988

1989

254.24
114.408

100%
45%

284.7488
128.13696

45.00%

318.91866
143.5134

45.00%

357.18889
160.735

45.00%

400.05156
180.0232

139.832

55%

156.61184

55.00%

175.40526

55.00%

196.45389

55.00%

220.02836 45% of sales (recent)

40.6784
78.8144
119.4928
20.3392

16.00%
31.00%
47.00%
8.00%

45.559808
88.272128
133.83194
22.779904

16.00%
31.00%
47.00%
8.00%

51.026985
98.864783
149.89177
25.513492

16.00%
31.00%
47.00%
8.00%

57.150223
110.72856
167.87878
28.575112

16.00%
31.00%
47.00%
8.00%

64.00825 16% sales (last and changing market)

124.01598
188.02423 31% of sales
32.004125

1.23439172
19.1048083
7.64192331
11.462885

0.49%
7.51%
3.01%
4.51%

1.6533957
21.126508
8.4506033
12.675905

0.58%
7.42%
2.97%
4.45%

2.4335241
23.079968
9.2319873
13.847981

0.76%
7.24%
2.89%
4.34%

3.371919
25.203193
10.081277
15.121916

0.94%
7.06%
2.82%
4.23%

4.4488219
27.555303
11.022121
16.533182

Science Technology Company

FINANCIAL RATIOS
LIQUIDITY MEASURES
Current Ratio
Quick Ratio
Working Capital Turnover
ACTIVITY MEASURES
Age of Trade Rec.
Age of Payables
Inventory Turnover
Asset Turnover

BALANCE SHEET
Cash
Accts. Receivable
Inventory
Other
Current Assets
Net Fixed Assets
Other
Total Assets
Notes Payable
Accounts Payable
Accruals
Current Liabilities
Long-Term Debt
Other LTO
Net Worth
Total Liab. & Equity

1985

1986

1987

1988

1989

1.77968
68.6448
94.95864

1.9932416
76.882176
106.35368

2.2324306
86.108037
119.11612

2.5003223
96.441002
133.41005

2.8003609
108.01392
149.41926

6.86448
172.2476
68.6448
8
248.8924

7.6882176
192.91731
76.882176
8
277.79949

8.6108037
216.06739
86.108037
8
310.17543

9.6441002
241.99548
96.441002
8
346.43648

10.801392
271.03493
108.01392
8
387.04886

24.21961
16.657805
21.783283

35.134637
18.656741
24.397277

47.10729
20.89555
27.32495

61.400026
23.403016
30.603944

25
2
188.13879
277.79949

28
2
201.98677
310.17543

32
2
217.10869
346.43648

36
2
233.64187
387.04886

16.107115
14.87304
19.44936
50.429515
21
2
175.462885
248.8924

Net Income
Networth
Share Sold

13%
17%

fix

80
10
68

81
-3
65

82 83
7 16
91 154
18.975 46.8

84
10
164

Sales growth is 12% per year in last few years however industry has grown at 30%
So the firms predicted growth remains the same considering market scenario
1985

COVERAGE MEASURES
Cash Flow/Int. Expense
Debt to Equity
PROFITABILITY RATIOS
ROA after Taxes
ROE after Taxes

85
14.979

304538595.xlsx

1986

1987

1988

1989

plug example

Beginning Net Worth

interest rate
Beginning Notes Payable

700
0.08
50

164
0.084
14

1985
Net Sales
COGS
Gross Profit
General & Admin. Exp.
Net from Operations
Interest Expense
Net Inc. Before Taxes
Taxes
Net Income

1000
800
200
100
100
7.786885
92.21311
36.88525
55.32787

258.78
116.451
142.329
116.451
25.878
-0.040619
25.91862
10.36745
15.55117

BALANCE SHEET
1985
Current Assets
Fixed Assets
Total Assets
Notes Payable -plug
Long-Term Debt
Net Worth
Total Liab. & Equity

100 175.3235
900 77.8706
1000 253.1941
144.6721 -14.96712
100
88.61
755.3279 179.5512
1000 253.1941

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