BASE YEAR YEAR 1 YEAR 2 YEAR 3

SALES 100,000 102,000 105,060 106,636

COST OF GOODS SOLD (60,000) (61,800) (63,654) (65,564)
GROSS PROFIT 40,000 40,200 41,406 41,072
OPERATIONAL EXPENSES:
SALARY EXPENSES (2,000) (2,034) (2,069) (2,104)
MARKETING EXPENSES (1,000) (1,007) (1,014) (1,021)
DEPRECIATION (BUILDING) (2,000) (2,750) (2,613) (2,482)
BAD DEBTS (1,000) (510) (525) (533)
(6,000) (6,301) (6,220) (6,140)
EBIT 34,000 33,899 35,186 34,932
INTEREST EXPENSES (2,000) (5,000) (5,000) (4,500)
EBT 32,000 28,899 30,186 30,432
TAX @ 50% (16,000) (14,450) (15,093) (15,216)
NET PROFIT 16,000 14,450 15,093 15,216
DIVIDEND 0 (433) (453) (456)
RETAINED EARNINGS 16,000 14,016 14,640 14,760

ASSUMPTIONS: YEAR 1 YEAR 2 YEAR 3

1 Sales growth rate 2.00% 3.00% 1.50%
2 CGS increase 3.00% 3.00% 3.00%
3 Salary Expense increase 1.70%
4 Marketing Expense increase 0.70%
5 Book Value Building 55,000 52,250 49,638 47,156
6 Debtors at end of base year 25,000 25,500 26,265 26,659
7 Depreciation Rate 5% 5% 5%
8 Outstanding Ioan 50,000 50,000 45,000
9 Interest Rate 10% 10% 10%
10 Tax Rate 50% 50% 50%
11 Dividend 3% 3% 3%
YEAR 4 YEAR 5
111,968 117,566
(67,858) (70,233)
44,109 47,333

(2,140) (2,176)
(1,028) (1,035)
(2,358) (2,240)
(280) (294)
(5,806) (5,745)
38,304 41,588
(4,000) (4,000)
34,304 37,588
(10,291) (11,276)
24,013 26,311
(1,201) (1,316)
22,812 24,996

YEAR 4 YEAR 5
5.00% 5.00%
3.50% 3.50%

44,798 42,558
27,992 29,392
5% 5%
40,000 40,000
10% 10%
30% 30%
5% 5%