growth

CU

BY
Cash & sec. $20
Accounts rec. 240
Inventories 240
total CA 500
Net fixed
assets 500
Total assets 1000

Accts. pay. &

accruals $100
Notes payable 100
Total CL $200
L-T debt 100
Common stock 500
Retained
earnings 200
Total claims $1,000
 BY
Sales $2,000.00
Var. costs (60%) 1,200.00
Fixed costs 700
EBIT $100.00
Interest 16
EBT $84.00
Taxes (40%) $33.60
Net income $50.40
Dividends (30%) $15.12
Add’n to RE $35.28

FC/FA 1.4
AFN
% AFN to be financed through %
Notes payable 50%
LT debt 50%
interest rate 8.0%
add'n in interest cost
 25.00%
100%

FY First Pass 2nd Pass

$25 $25 $25 $25
$300 $300 $300 $300
300 300 300 300
625 625 625 625

625 625 625 625

1250 1250 1250 1250.00

$125.00 $125.00 $125.00 $125.00

100 $189.61 $192.62 $192.72
$225.00 $314.61 $317.62 $317.72
100 $189.61 $192.62 $192.72
500 500 500 500

$245.78 $239.76 $239.56 $239.549

$1,071 $1,244 $1,249.798 $1,249.99
F.Y
$2,500.00
$1,500.00
875
$125.00 $125.00 $125.00 $125.00
16 $30.34 $30.82 $30.84
$109.00 $94.66 $94.18 $94.16
$43.60 $37.86 $37.67 $37.67
$65.40 $56.80 $56.51 $56.50
$19.62 $17.04 $16.95 $16.95
$45.78 $39.76 $39.56 $39.549

$179 $6.022 $0.202

$89.61 $3.011 $0.10

$89.61 $3.011 $0.10
8.0% 8.0% 8.0%
$14.34 $0.482 $0.0162
 growth
CU

BY
Cash & sec. $20
Accounts rec. 240
Inventories 240
total CA 500
Net fixed
assets 500
Total assets 1000

Accts. pay. &

accruals $100
Notes payable 100
Total CL $200
L-T debt 100
Common stock 500
Retained
earnings 200
Total claims $1,000
BY
Sales $2,000.00
Var. costs (60%) 1,200.00
Fixed costs 700
EBIT $100.00
Interest 16
EBT $84.00
Taxes (40%) $33.60
Net income $50.40
Dividends (30%) $15.12
Add’n to RE $35.28

FC/FA 1.4
AFN
% AFN to be financed through %
Notes payable 50%
LT debt 50%
interest rate 8.0%
add'n in interest cost
 25%
50%

FY First pass
$25 25 25
$300 300 300
300 300 300
$625 625 625

500 500 500

1125 1125 1125

$125 $125 $125

100 $90.36 $90.04
$225 $215.36 $215.04
100 $90.36 $90.04
500 500 500

$319.28 $319.93 $319.928

$1,144 $1,126 $1,125

$2,500.00 $2,500.00 $2,500.00

$1,500.00 $1,500.00 $1,500.00
700 700 700
$300.00 $300.00 $300.00
16 $14.458 $14.406
$284.00 $285.54 $285.59
$113.60 $114.22 $114.24
$170.40 $171.33 $171.36
$51.12 $51.40 $51.41
$119.28 $119.93 $119.95

($19.28) ($0.65)

($9.64) ($0.32)
($9.64) ($0.32)

($1.542) ($0.052)
sales growth 25%

BY
Cash & sec. $20
Accounts rec. 240
Inventories 240
total CA 500
Net fixed
assets 500
Total assets 1000

Accts. pay. &

accruals $100
Notes payable 100
Total CL $200
L-T debt 100
Common stock 500
Retained
earnings 200
Total claims $1,000
BY
Sales $2,000.00
Var. costs (60%) 1,200.00
Fixed costs 700
EBIT $100.00
Interest 16
EBT $84.00
Taxes (40%) $33.60
Net income $50.40
Dividends (30%) $15.12
Add’n to RE $35.28

FC/FA 1.4
AFN
% AFN to be financed through %
Notes payable 50%
LT debt 50%
interest rate 8.0%
add'n in interest cost

BY
CU (as a % of BY) 90%
CU (in terms CY) 90%
sales / CU $22.22
max sales possible with existing
machinery $2,222.22
Full Capacity sales equals current
sales divided by % of Capacity $2,222.22
used
Sales $2,000.00
FY First Pass 2nd Pass 3rd Pass
$25
$300
300
625 625

562.5 562.5
1187.500 1187.50 1187.50 1187.50

$125 $125 $125 $125

100 $139.985 $141.328 $141.374
$225 $265 $266 $266
100 $139.985 $141.328 $141.374
500 500 500 500

282.53 $279.843 $279.75 $279.75

$1,107.530 $1,184.81 $1,187.41 $1,187.50

$2,500.00
1,500.00
787.5
 $212.50 $212.50 $212.50 $212.50
16 $22.40 $22.61 $22.62
$196.50 $190.10 $189.89 $189.88
$78.60 $76.04 $75.95 $75.95
$117.90 $114.06 $113.93 $113.93
$35.37 $34.22 $34.18 $34.18
$82.53 $79.84 $79.75 $79.75

$79.970 $2.687 $0.09

$39.985 $1.343 $0.05

$39.985 $1.343 $0.05
8.0% 8.0% 8.0%
$6.40 $0.215 $0.01

FY
112.50%
100%
$2,500.00
 BY
sales growth
CU (as a % of BY) 90%

CU (in terms CY)

sales $ 2,000.00

max sales with

current machinery $ 2,222.22
FA $ 500.00
FC $ 700.00

FC/FA 1.4
FY SY
25% 50%
112.50% 168.75%

100% 100%
$ 2,500.00 $ 3,750.00

$ 562.50 $ 843.75
$ 787.50 $ 1,181.25
 BY
sales growth
CU / machine (as a % of BY) 50%
installed capacity (as a % of BY) 100%
CU (as a % of BY) 100%
CU (in terms CY)
no. of machines 2
sales $2,000.00

max sales with existing machinery $2,000.00

FA $500.00
FC $700.00

FC/FA 1.4
FY SY
35% 75%

150% 250%
135% 236%
90.0% 94.500%
3 5
$2,700.00 $4,725.00

$750.00 $1,250.00
$1,050.00 $1,750.00
 BY
sales growth
CU / machine (as a % of BY) 50.0%
installed capacity (as a % of BY) 100.0%
CU (as a % of BY) 90%
CU (in terms CY)
no. of machines 2
sales $2,000.00
max sales possible with existing
machinery $2,222.22
FA $500.00
FC $700.00
FY SY
50% 77%

150% 250%
135% 239%
90.0% 95.58%
3 5
$3,000.00 $5,310.00

$750.00 $1,250.00
$1,050.00 $1,750.00
sales output growth 54.5%

CU 50%
inflation 10%
BY
Cash & sec. $20
Accounts rec. 240
Inventories 240
total CA 500
Net fixed
assets 500
Total assets 1000

Accts. pay. &

accruals $100
Notes payable 100
Total CL $200
L-T debt 100
Common stock 500
Retained
earnings 200
Total claims $1,000
BY
Sales $2,000.00
price $1.00
quantity 2,000.00
Var. costs (60%) 1,200.00
Fixed costs 700
EBIT $100.00
Interest 16
EBT $84.00
Taxes (40%) $33.60
Net income $50.40
Dividends (30%) $15.12
Add’n to RE $35.28

FC/FA 1.4
AFN
% AFN to be financed through %
Notes payable 50%
LT debt 50%
interest rate 8.0%
add'n in interest cost
 growth 70%

$30.9091
$370.9091
370.9090909091
772.7273

772.7273
1545.4545

$155
100
$255
100
500

310.1163636364
$1,165

$3,400.00
$1.10
3090.909 output growth 54.54545%
$2,040.00
1081.818181818
$278.18
16
$262.18
$104.87
$157.31
$47.19
$110.12

$381
$190.40
$190.40
8.0%
$30.46
inflation 10%
rest is
output
growth
 BY
sales growth
sales price growth
cost price growth
machine price inflation
new machinery cost as a % of old
one

improved % in output of new

machine as a % of old machines
CU / machine (as a % of BY) 50.0%
installed capacity (as a % of BY) 100.0%
CU (as a % of BY) 90%
CU (in terms CY)
no. of machines 2
sales $2,000.00
FA $500.00
FC $700.00

BY
Sales $2,000.00
price $1
quantity 2000
output growth rate
Variable cost $ 1,200.00
vc/unit $ 0.60

Fixed cost $ 700.00

gross profit $100.00

BY
installed capacity (as a % of BY) 100.0%
CU (as a % of BY) 90%
change in CU (as a % of BY)
CU (in terms CY)
old machines 2.00
price of old machine 250.00
price of new machines
CU / old machine (as a % of BY) 50.0%
CU / new machine (as a % of BY) 90.0%
new machines added
FA $500.00
FA old
FA-new
FC $700
FY SY
80% 15%
7% 7%
10% 10%
15% 15%

70% 70%

80% 80%

FY SY
$3,600.00 $4,140.00
$1.07 $1.14
3364.48598131 3616.03633505
68.22% 7.5%
$ 2,220.56 $ 2,625.24
$ 0.66 $ 0.73

$981.75 $981.75
$397.69 $533.01

FY SY
190.0% 190.0%
151.4% 162.72%
61.4% 11.32%
80% 86%

287.50 330.63
201.25 231.44

1
$701.25 $701.25
$500 $500
201.25 201.25
$981.75 $981.75
 BY FY
sales growth 60%
sales price growth 15%
cost price growth 10%
machine price inflation 25%
new machinery cost as a %
of old one 115%

improved % in output of
new machine as a % of old
machines (from last year) 30%
CU (as a % of BY) 90%
no. of machines 2
sales $2,000.00
FA $500.00
FC $700.00
Life of machinery 2.00
years ago other was
bought start of the
existing base year

2% greater than last

new borrowing rate year for every year
applicable on new loans - old loans same rat
Dividends payable 30% 40%
 SY
75%
21%
14%
35%

130%

25%

ld loans same rate

20%