Teddy

Years 0 1 2 3 4 5
Sale of the teddy bears
Teddy bear market 100,000 100,000 100,000 100,000 100,000
Share 5% 6% 7% 8% 9%
Sales of the teddy bears (Market) 5,000 6,000 7,000 8,000 9,000
Price per teddy 500 $500 $500 $500 $500
Revenues $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

Start up investments
Factory 200,000
Equipment 165,000
Patent, trademarks 50,000
Openinig costs 50,000
Total start up investments 465,000

Depreciation of Assets
Factory $200,000
depreciation rate 4%
depreciation 8,000 8,000 8,000 8,000 8,000

Equipment $165,000
depreciation rate 10%
depreciation 16,000 16,000 16,000 16,000 16,000

Patent, trademarks $50,000

depreciation rate 10%
depreciation 5,000 5,000 5,000 5,000 5,000

Opening costs $50,000

depreciation rate 10% 5,000 5,000 5,000 5,000 5,000
depreciation

Depreciation

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Depreciation per year 34,000 34,000 34,000 34,000 34,000

Cumulated depreciation 34,000 68,000 102,000 136,000 170,000

Repayment of investment loan

Year Beginning Amount PMT Interest Capital End
1 500,000 115,487 25,000 90,487 409,513
2 409,513 115,487 20,476 95,012 314,501
3 314,501 115,487 15,725 99,762 214,738
4 214,738 115,487 10,737 104,750 109,988
5 109,988 115,487 5,499 109,988 0
577,437 77,437 500,000
Operating expenses
1 Raw materials 250,000 300,000 350,000 400,000 450,000
2 Energy costs 25,000 30,000 35,000 40,000 45,000
3 Salaries 180,000 180,000 252,000 252,000 252,000
4 Social Securities 72,000 72,000 100,800 100,800 100,800
Costs of goods sold 527,000 582,000 737,800 792,800 847,800
5 Depreciation 34,000 34,000 34,000 34,000 34,000
6 Marketing 750,000 900,000 1,050,000 1,200,000 1,350,000
7 Management expenses 300,000 300,000 300,000 300,000 300,000
8 Interest expenses 25,000 20,476 15,725 10,737 5,499
Total expenses 1,636,000 1,836,476 2,137,525 2,337,537 2,537,299

Changes in net working capital

Current assets
Inventory 175,667 194,000 245,933 264,267 282,600
Accounts receivables 208,333 250,000 291,667 333,333 375,000
Short term investments
Current assets 384,000 444,000 537,600 597,600 657,600
Increase in current assets 384,000 60,000 93,600 60,000 60,000

Current liabilities
Accounts payable 131,417 148,500 173,983 191,067 208,150
Increase in current liabilities 131,417 17,083 25,483 17,083 17,083

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Net Working Capital 252,583 295,500 363,617 406,533 449,450

Changes in net working capital 252,583 42,917 68,117 42,917 42,917

Total investment spending

Acquisitions of assets 465,000
Net working capital 252,583 42,917 68,117 42,917 42,917
Total Investment 465,000 252,583 42,917 68,117 42,917 42,917

Sources of financing
Long - term debt 500,000
Sharholder equity 200,000

The income statment

Revenues 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000
Cost of goods sold 527,000 582,000 737,800 792,800 847,800
Sales expenses 750,000 900,000 1,050,000 1,200,000 1,350,000
Management expenses 300,000 300,000 300,000 300,000 300,000
Depreciation 34,000 34,000 34,000 34,000 34,000
Earnings before interest and taxes 889,000 1,184,000 1,378,200 1,673,200 1,968,200
Interest income 0 0 0 0 0
Interest expense 25,000 20,476 15,725 10,737 5,499
Pretax income 864,000 1,163,524 1,362,475 1,662,463 1,962,701
Taxes (18%) 155,520 209,434 245,245 299,243 353,286
Net Income 708,480 954,090 1,117,229 1,363,220 1,609,414

Capital surplus
Net income 708,480 954,090 1,117,229 1,363,220 1,609,414
Dividends 141,696 190,818 223,446 272,644
Retained Earning 566,784 1,330,056 2,223,840 3,314,415

Capital 200,000 200,000 200,000 200,000 200,000 200,000

Increase in capital surplus 708,480 1,520,874 2,447,285 3,587,059 4,923,830
Total Equity 200,000 908,480 1,720,874 2,647,285 3,787,059 5,123,830

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Financial Cash - Flow

Cash - flow from operating activities
Net income 708,480 954,090 1,117,229 1,363,220 1,609,414
Depreciation 34,000 34,000 34,000 34,000 34,000
Increase in current assets 384,000 60,000 93,600 60,000 60,000
Increase in current liabilities 131,417 17,083 25,483 17,083 17,083
Cash - flow from operating activities 489,897 945,173 1,083,113 1,354,303 1,600,498
Cash - flow from investing activities
Capital spending 465,000
Cash - flow from investing activi -465,000 0 0 0 0 0
Cash - flow from financing activities
Long - term debt 500,000 0 0 0 0 0
Principal payment 90,487 95,012 99,762 104,750 109,988
New stock issue 200,000 0 0 0 0 0
Dividens 0 141,696 190,818 223,446 272,644
Cash - flow from financing activi 700,000 -90,487 -236,708 -290,580 -328,196 -382,632
Changes in cash - flow 235,000 399,409 708,466 792,532 1,026,107 1,217,866
Cumulated cash - flow 235,000 634,409 1,342,875 2,135,407 3,161,514 4,379,380

Balance sheet
Assets
Cash 235,000 634,409 1,342,875 2,135,407 3,161,514 4,379,380
Current assets 0 384,000 444,000 537,600 597,600 657,600
Fixed assets 465,000 431,000 397,000 363,000 329,000 295,000
Total asstes 700,000 1,449,409 2,183,875 3,036,007 4,088,114 5,331,980
Total liabilities and equtiy
Shareholder equity 200,000 200,000 200,000 200,000 200,000 200,000
Retained Earnings/Losses 0 0 566,784 1,330,056 2,223,840 3,314,415
Net income 0 708,480 954,090 1,117,229 1,363,220 1,609,414
Long - term debt 500,000 409,513 314,501 214,738 109,988 0
Current liabilities 0 131,417 148,500 173,983 191,067 208,150
Total liabilities and equtiy 700,000 1,449,409 2,183,875 3,036,007 4,088,114 5,331,980

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Flow to Equity
Net income
Depreciation
Net Working Capital
CAPEX
Net Debt
Cash - flows to equity

Free Cash Flow

EBIT
Tax
NOPAT
Depreciation
Net Working Capital
Capex
Cash - flows

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-2,543.13 €