Some Additional Financial Concepts

Adjusted Earning or Adjusted PAT

Basic EPS
Diluted EPS
Free Cash Flow for the Firm (FCFF)
 Balance Sheet Income Statement
2018 2019 2018 2019 2018
Capital (10) 100,000 100,000 Sales 600,000 800,000 PAT 245,000
Reserves 80,000 172,000 COGs 100,000 120,000 less
9% Preference Shares 100000 100000 GP 500,000 680,000 Pref Dividend 9000
10 % Loan 200,000 300,000 SGA 30,000 35,000 236,000
Creditors 40,000 40,000 Dep 100,000 150,000 no of shares 10000
520,000 712,000 PBIT 370,000 495,000

Interest 20,000 30,000 23.6

PPE 600,000 800,000
less Accu Dep -280,000 -430,000 PBT 350,000 465,000
Inventory 60,000 80,000 Tax 105,000 139,500
Receivables 30,000 60,000 PAT 245,000 325,500
Cash 110,000 202,000
520,000 712,000

Find
EPS
EVA (Assume Ke = 18%)
 Balance Sheet Income Statement
2018 2019 2018 2019 PAT 245,000
Capital (10) 100,000 150,000 Sales 600,000 800,000
Reserves 80,000 172,000 COGs 100,000 120,000 opening 10000
10 % Loan 200,000 300,000 GP 500,000 680,000 issues 0

SGA 30,000 35,000 10000

Creditors 40,000 40,000 Dep 100,000 150,000

420,000 662,000 PBIT 370,000 495,000 EPS 24.5

Interest 20,000 30,000
PPE 600,000 800,000
less Accu Dep -280,000 -430,000 PBT 350,000 465,000
Inventory 60,000 80,000 Tax 105,000 139,500
Receivables 30,000 60,000 PAT 245,000 325,500
Cash 10,000 152,000
420,000 662,000
Additional Information
shares were issued at FV on 1st January 2019

Balance Sheet Income Statement

2018 2019 2018 2019 2018
Capital (10) 100,000 100,000 Sales 600,000 800,000 Actual 10000
Reserves 80,000 172,000 COGs 100,000 120,000 Potential Shares 4000
10 % Loan 200,000 300,000 GP 500,000 680,000 Adjusted shares 14000
12% ConvertibleBonds (FV = 100) 100,000 100,000 SGA 30,000 35,000
Creditors 40,000 40,000 Dep 100,000 150,000 Adjusted PAT
520,000 712,000 PBIT 370,000 495,000 PAT 236,600
Interest 20,000 30,000 Add
PPE 600,000 800,000 Interest 12000 12000 Int on Convertible *(1-t) 8400
less Accu Dep -280,000 -430,000 PBT 338,000 453,000 245,000
Inventory 60,000 80,000 Tax 101,400 135,900

Receivables 30,000 60,000 PAT 236,600 317,100 Diluted EPS 17.5

Cash 110,000 202,000
520,000 712,000

Bonds are convertible into shares at the market price of shares

MP of shares on 31 March 2017 25 25

no of shares to be issued = Bond Value/ M Arket value of shares

 2019
325,500

9000
316,500
10000

31.65
325,500
W
10000 12 1 10000
5000 3 0.25 1250
15000 11250

28.93

2019
10000
 4000
14000

317,100

8400
325,500

23.25
 Balance Sheet Income Statement

2016 2017 2016 2017

Capital 100000 100000 Sales 600000 800000

Reserves 80000 172000 COGs 100000 120000

10 % Loan 200000 300000 GP 500000 680000

Creditors 40000 40000 SGA 30000 35000

Dep 100000 150000

420000 612000 PBIT 370000 495000

Interest 20000 30000

PPE 600000 800000 PBT 350000 465000

less Accu Dep -280000 -430000 Tax 105000 139500

Inventory 60000 80000 PAT 245000 325500

Receivables 30000 60000

Cash 10000 102000

420000 612000

CA other than cash 90000 140000

CL 40000 40000
WC 50000 100000
 IS FFCF calculation
2015 CFO PAT
Sales 1,850,000
COGS 655,000
GP 1,195,000
OPEX 345,000
Dep 40,000
Amortisation 10,000
PBIT 810,000
Interest 22,000 NOPAT PBIT
PBT 788,000
Tax 236,400
PAT 551,600

Additional information
Capital Expenditure 20,000

Increase in WC 10,000
FFCF calculation
NOPAT

CFO
 Balance Sheet Income Statement
2016 2017 2010 2011
Capital 50000 50000 Sales 250000 350000
RE 30000 86000 COGs 100000 120000
LTD 100000 114000 GP 150000 230000
Creditors 20000 20000 SGA 30000 35000
STD 10000 20000 Dep 40000 50000
210000 290000 PBIT 80000 145000
Interest 10000 15000
PPE 300000 400000 PBT 70000 130000
AD -140000 -190000 Tax 21000 39000
Inventory 30000 40000 PAT 49000 91000
Receivables 15000 30000
Cash 5000 10000
210000 290000 Find
EPS
EVA
ROE
FCFF
 Balance Sheet Income Statement
2018 2019 2018 2019
Capital 100000 100000 Sales 250000 350000
RE 60000 172000 COGs 100000 120000
LTD 200000 228000 GP 150000 230000
Creditors 40000 40000 SGA 30000 35000
STD 20000 40000 Dep 40000 50000
420000 580000 PBIT 80000 145000
Interest 10000 15000
PPE 600000 800000 PBT 70000 130000
AD -280000 -380000 Tax 21000 39000
Inventory 60000 80000 PAT 49000 91000
Receivables 30000 60000
Cash 10000 20000
420000 580000

Net PPE 320000 420000

Working Cap 50000 100000

other than STD
 IS FFCF calculation
2011 CFO PAT NOPAT
Sales 100000
COGS 30000
GP 70000
OPEX 45000
Dep 10000
PBIT 15000
Interest 5000
PBT 10000
Tax 3000
PAT 7000

Additional information
Capital Expenditure 50000

Increase in Stock 5000

Increase in Debtors 4000
Decrease in Creditors 1000
 Balance Sheet Income Stateent FCFF
2015 2016 2015 2016
Capital 50 50 Sales 250 300
RE 30 86 COGs 100 120
LTD 100 114 GP 150 180
Creditors 20 20 SGA 30 35
STD 10 20 Dep 40 50
210 290 PBIT 80 95
Interest 10 15
PPE 300 400 PBT 70 80
AD -140 -190 Tax 21 24
Inventory 30 40 PAT 49 56
Receivables 15 30
Cash 5 10
210 290