Exercise 1

With the following information prepare the financial statements (BS

The company "The star" sells women's shoes, the first year it sold 5,
The unit cost of the shoes is 40,000
The company pays a monthly rent of 1,000,000, public services for 5
The company annually invests 5% of its total income in sales expens
The company acquires in year 1 a debt of 50,000,000 at 10 years and
The tax rate is 33%
The company has an initial cash of 50,000,000 in year 1
The company acquires in year 1 a machinery for a value of 47,500,00
The partners contributed a share capital of 10,000,000 each and the
Inflation was 3.8%
At the end of each year, the company was left with an account recev
The company makes inventory purchases for 315.000.000 the first y
Accounts payable at the end of year 1 were 73.852.500 M and at yea
ancial statements (BS-IS-CF) for the 1st and the 2nd year of operation
he first year it sold 5,000 units at a unit price of 85,000, the year 2 it sold 15% more

, public services for 500,000 a month and his payroll totals 1,500,000 a month.
come in sales expenses.
00,000 at 10 years and pays an interest of 28% AE

n year 1
r a value of 47,500,000 which is depreciated in 5 years, in year 2 it acquires a new m
000,000 each and there are 3 partners.

with an account receviable of 10% of the sales for the year.

15.000.000 the first year and 200.000.000 the second year.
852.500 M and at year 2, 239.988.577
r 2 it sold 15% more

0,000 a month.

2 it acquires a new machinery for a value of 129.507.750

Balance Sheet Year 1 Year 2

Cash 50,000,000 253,295,000

Account Receivables 42,500,000 50,732,250
Inventory 115,000,000 76,260,000
Total Current Assets 207,500,000 380,287,250

PP&E 38,000,000 132,106,200

Total Non Current Asset 38,000,000 132,106,200

Total Assets 245,500,000 512,393,450

Account Payables 73,852,500 239,988,577

Total Current Liabilities 73,852,500 239,988,577

Long Term Debt 45,000,000 40,000,000

Total Non Current Liabilities 45,000,000 40,000,000

Total Liabilities 118,852,500 279,988,577

Share Capital 30,000,000 30,000,000

Retained Earnings 96,647,500
Net Profit 96,647,500 105,757,373
Total Equity 126,647,500 232,404,873

Total Liabilities and Equity 245,500,000 512,393,450

0 0

Income Statement Y1 Y2

Revenues 425,000,000 507,322,500

COGS (cost of goods sale) CMV -200,000,000 -238,740,000
Gross Profit 225,000,000 268,582,500
Depreciation -9,500,000 -35,401,550
SG&A -57,250,000 -62,734,125
Interest -14,000,000 -12,600,000
Earnings Before Tax 144,250,000 157,846,825
Tax -47,602,500 -52,089,452
Net Earnings/ Income 96,647,500 105,757,373

Cash Flow Statement Y1 Y2

Net Income 96,647,500 105,757,373

Depreciation 9,500,000 35,401,550
Change in Working Capital 83,647,500 -196,643,827
Change In Account Receivable 42,500,000 8,232,250
Change In Inventory 115,000,000 -38,740,000
Change In Account Payable 73,852,500 166,136,077
Cash From Operations 189,795,000 -55,484,904

Purchase from PP&E -47,500,000 -129,507,750

Cash From Investing 142,295,000 -184,992,654

New Debt 50,000,000

Capital 30,000,000
Debt Payment (Principal) -5,000,000 -5,000,000
Debt Payment (Interest) -14,000,000 -12,600,000
Cash From Financing 203,295,000 -202,592,654

Cash at beginning of period 50,000,000 253,295,000

Cash at end of period 253,295,000 50,702,346

EBITDA 167,750,000 205,848,375

Cash Flow 189,795,000 -55,484,904

Free Cash Flow 142,295,000 -184,992,654

Free Cash Flow to Equity 137,295,000 -189,992,654

 1 2
Units 5,000 5,750
Price 85,000 88,230
Revenue 425,000,000 507,322,500

Unit Cost 40,000 41,520

Cost 200,000,000 238,740,000

Rent 12,000,000 12,456,000

Public Services 6,000,000 6,228,000
Payroll 18,000,000 18,684,000
Admin Exp 36,000,000 37,368,000

Sales Exp 21,250,000 25,366,125

SG&A 57,250,000 62,734,125

Inicial Debt 50,000,000 45,000,000

Time 10 10
Interest 28% 28%

Capital 5,000,000 5,000,000

Interest 14,000,000 12,600,000
Final Debt 45,000,000 40,000,000

Maqu 47,500,000 129,507,750

Time 5 5
Depr 9,500,000 25,901,550
PP&E 38,000,000

M1 38,000,000 28,500,000
M2 103,606,200
38,000,000 132,106,200

Inv Inicial 0 115,000,000

Compras 315,000,000 200,000,000
CMV -200,000,000 -238,740,000
Inventario final 115,000,000 76,260,000