You are on page 1of 2

)LQDQFLDO6WDWHPHQW

,QFRPH6WDWHPHQW

6DOHV

6DOHV*URZWK
&RVWRI*RRGV6ROG &2*6

&2*60DUJLQ
*URVV3URILW

0DUJLQ

2SHUDWLQJ([SHQVHV

RI6DOHV
(%,7'$

0DUJLQ
(%,7

0DUJLQ

1HW,QWHUHVW([SHQVH
(%7

0DUJLQ
7D[HV

7D[5DWH
1HW,QFRPH

0DUJLQ
&DVK)ORZ6WDWHPHQW

1HW,QFRPH
'HSUHFLDWLRQ

6DOHVDUHGULYHQE\VDOHVJURZWKDVVXPSWLRQV
)RUPXOD 6DOHV /DVW<HDU6DOHV[ &XUUHQW<HDU6DOHV*URZWK
6DOHV*URZWK ,QSXWRQ$VVXPSWLRQ3DJH
&2*6DUHGULYHQE\PDUJLQDVVXPSWLRQ
)RUPXOD &2*6 6DOHV[&2*60DUJLQ
&2*60DUJLQ ,QSXWRQ$VVXPSWLRQ3DJH
)RUPXOD *URVV3URILW 6DOHV&2*6
0DUJLQ *URVV3URILW6DOHV
2SHUDWLQJ([SHQVHVDUHGULYHQE\RIVDOHVDVVXPSWLRQV
)RUPXOD 2SHUDWLQJ([SHQVHV 6DOHV[RI6DOHV
RI6DOHV ,QSXWRQ$VVXPSWLRQ3DJH
)RUPXOD (%,7'$ (%,7'HSUHFLDWLRQ
0DUJLQ (%,76DOHV
)RUPXOD (%,7 *URVV3URILW2SHUDWLQJ([SHQVHV
0DUJLQ (%,76DOHV
,QWHUHVW([SHQVHLVGULYHQE\LQWHUHVWUDWHDVVXPSWLRQV
)RUPXOD ,QWHUHVW([SHQVH $YHUDJH'HEW[,QWHUHVW5DWH
)RUPXOD (%7 (%,71HW,QWHUHVW([SHQVH
0DUJLQ (%76DOHV
7D[HVDUHGULYHQE\DVVXPHGWD[UDWH
)RUPXOD 7D[HV (%7[7D[5DWH
7D[5DWH ,QSXWRQ$VVXPSWLRQ3DJH
)RUPXOD 1HW,QFRPH (%77D[HV
0DUJLQ 1HW,QFRPH6DOHV

2WKHU1RQ&DVK,WHPV
,QYHVWPHQWLQ:RUNLQJ&DSLWDO

5HDGIURP,QFRPH6WDWHPHQW
&DOFXODWHGEDVHGRQRI33 (
)RUPXOD 'HSUHFLDWLRQ 33 (DWEHJLQQLQJRI\HDU[RI33 (
RI33 ( ,QSXWRQ$VVXPSWLRQ3DJH
.HHSFRQVWDQWIURPKLVWRULFDOUHVXOWVRUPDNHVSHFLILFDVVXPSWLRQVDVQHHGHG
5HDGIURPFKDQJHLQZRUNLQJFDSLWDOSURYLGHGE\ZRUNLQJFDSLWDOVFKHGXOH

2SHUDWLQJ&DVK)ORZ

)RUPXOD

RI33 (

RI&KDQJHLQ6DOHV
RI6DOHV

&DSLWDO([SHQGLWXUH

RI33 (

/HYHUHG)UHH&DVK)ORZ
$IWHU7D[,QWHUHVW([SHQVH
8QOHYHUHG)UHH&DVK)ORZ
6HOHFWHG%DODQFH
6KHHW,WHPV

&RPPHQWV

:RUNLQJ&DSLWDO6FKHGXOH

$FFRXQWV5HFHLYDEOH

'D\V5HFHLYDEOH
,QYHQWRU\

,QYHQWRU\7XUQRYHU
2WKHU&XUUHQW$VVHWV

RI6DOHV

$FFRXQWV3D\DEOH

'D\V3D\DEOH

2WKHU&XUUHQW/LDELOLWLHV

RI6DOHV

1HW:RUNLQJ&DSLWDO

RI6DOHV

&KDQJHLQ1HW:RUNLQJ&DSLWDO

RI&KDQJHLQ6DOHV

2SHUDWLQJ&DVK)ORZ 1HW,QFRPH'HSUHFLDWLRQ2WKHU1RQ&DVK,WHPV
RI6DOHV 2SHUDWLQJ&DVK)ORZ6DOHV
&DOFXODWHEDVHGRQRIDYHUDJH33 (RURQRI'HSUHFLDWLRQRURQRI6DOHV
)RUPXOD &DSLWDO([SHQGLWXUHV $YHUDJH33 ([RI>33 (@
RI>33 (@ ,QSXWRQ$VVXPSWLRQ3DJH
)RUPXOD /HYHUHG)UHH&DVK)ORZ 2SHUDWLQJ&DVK)ORZ,QYHVWPHQWLQ:RUNLQJ&DSLWDO
&DSLWDO([SHQGLWXUH
)RUPXOD $IWHU7D[,QWHUHVW([SHQVH 1HW,QWHUHVW([SHQVH[ 7D[5DWH
)RUPXOD 8QOHYHUHG)UHH&DVK)ORZ /HYHUHG)UHH&DVK)ORZ$IWHU7D[,QWHUHVW([SHQVH
&DOFXODWHGEDVHGRQGD\VUHFHLYDEOH
)RUPXOD $FFRXQWV5HFHLYDEOH 6DOHV[ 'D\V5HFHLYDEOH
'D\V5HFHLYDEOH ,QSXWRQ$VVXPSWLRQ3DJH
&DOFXODWHGEDVHGRQLQYHQWRU\WXUQRYHU
)RUPXOD ,QYHQWRU\ &2*6,QYHQWRU\7XUQRYHU
,QYHQWRU\7XUQRYHU ,QSXWRQ$VVXPSWLRQ3DJH
&DOFXODWHGEDVHGRQRI6DOHV
)RUPXOD 2WKHU&XUUHQW$VVHWV 6DOHV[RI6DOHV
RI6DOHV ,QSXWRQ$VVXPSWLRQ3DJH
&DOFXODWHGEDVHGRQGD\VSD\DEOH
)RUPXOD $FFRXQWV3D\DEOH &2*6[ 'D\V3D\DEOH
'D\V3D\DEOH ,QSXWRQ$VVXPSWLRQ3DJH
&DOFXODWHGEDVHGRQRI6DOHV
)RUPXOD 2WKHU&XUUHQW/LDELOLWLHV 6DOHV[RI6DOHV
RI6DOHV ,QSXWRQ$VVXPSWLRQ3DJH
)RUPXOD 1HW:RUNLQJ&DSLWDO $FFRXQWV5HFHLYDEOH,QYHQWRU\2WKHU&XUUHQW$VVHWV
$FFRXQWV3D\DEOH2WKHU&XUUHQW/LDELOLWLHV
RI6DOHV 1HW:RUNLQJ&DSLWDO6DOHV
)RUPXOD &KDQJHLQ1HW:RUNLQJ&DSLWDO &XUUHQW\HDU1HW:RUNLQJ&DSLWDO/DVW<HDU1HW
:RUNLQJ&DSLWDO
RI&KDQJHLQ6DOHV &KDQJHLQ1HW:RUNLQJ&DSLWDO&KDQJHLQ6DOHV

)LQDQFLDO6WDWHPHQW

33 (6FKHGXOH
33 (

&RPPHQWV

6WDUWZLWKODWHVW%DODQFH6KHHWHQWU\ VHH4.
)RUPXOD 33 ( /DVW<HDU33 (&DSLWDO([SHQGLWXUHV'HSUHFLDWLRQ

A dynamic model links the three statements together.


The following graph illustrates the necessary links for the underlying dynamic business
model including a full balance sheet:

Balance Sheet

Income Statement
Sales (driver: growth)

Cash

- Cost of Goods Sold

Inventory

Accounts Receivable

- Operating Expenses (driver: margin, inflation)

PP&E

+ Synergies (if any)

Total Assets

Accounts Payable

Debt

Shareholders Equity

= Gross Profit (driver: margin)

= EBIT
- Interest
= EBT
- Tax

= Net Income

Total Liabilities and Shareholders Equity


Working Capital Schedule

Cash Flow Statement

Change in Inventory (driver: turns/sales)

Net Income

Change in Accounts Receivable (driver: days/sales)

+ Depreciation (1)

Change in Accounts Payable (driver: days/COGS)

= Operating Cash Flow

- Investment in WC

Investment in WC
Debt and Cash Schedule
Beginning Cash Balance

- Capital Expenditures

Beginning Debt Balance

= Free Cash Flow

+/- Change in Cash

+/-Change in Debt

+/- Debt paydown/increase

- Dividend Payments
+/-Change in Equity

Ending Debt Balance (calculate interest expense on average)

= Change in Cash

Ending Cash Balance (calculate interest income on average)

Note: (1) Depreciation of factory-related items can be found in Cost of Goods Sold. Depreciation on everything else (headquarters, copiers in
corporate offices) can be found in SG&A.

**