Cash Flow Reconciliation Template Strictly Confidential

Notes
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INCOME STATEMENT
Year ended December 31,
(in millions) 2018 2017 2016 2015 2014

Revenue $22,000 $20,000 $18,000 $15,000 $10,000

COGS (3,200) (3,200) (3,000) (3,000) (2,500)
Gross Profit 18,800 16,800 15,000 12,000 7,500

Depreciation (500) (500) (500) (450) (400)

SG&A (300) (300) (300) (300) (300)
Interest (50) (50) (50) (50) (50)
Earnings Before Tax 17,950 15,950 14,150 11,200 6,750

Tax (3,590) (3,190) (2,830) (2,240) (1,350)

Net Earnings 14,360 12,760 11,320 8,960 5,400

CASH FLOW STATEMENT

Year ended December 31,
(in millions) 2018 2017 2016 2015 2014
Cash from Operations
Net Income $14,360 $12,760 $11,320 $8,960 $5,400
Adjusted for:
Depreciation 500 500 500 450 400
Stock based compensation 0 0 0 0 0
Change in accounts receivable (200) 500 900 (1,500) (1,000)
Change in inventory 1,000 (3,000) 1,300 2,000 (14,000)
Change in accounts payable 500 (500) (500) 500 1,000
Cash from Operations $16,160 $10,260 $13,520 $10,410 ($8,200)

Cash from Investing

Purchase of PP&E ($500) ($5,500) ($1,200) ($5,450) ($40,400)
Acquisition of businesses 0 0 0 0 0
Cash from Investing ($500) ($5,500) ($1,200) ($5,450) ($40,400)

Cash from Financing

Issuance (repayment) of debt 0 6,000 5,000 3,500 18,500
Issuance (repayment) of equity 0 0 0 0 30,000
Dividends 0 0 0 0 0
Cash from Financing 0 6,000 5,000 3,500 48,500

Net Change in Cash $15,660 $10,760 $17,320 $8,460 ($100)

Cash at beginning of period 49,190 38,430 21,110 12,650 12,750
Cash at end of period $64,850 $49,190 $38,430 $21,110 $12,650

EBITDA $18,500 $16,500 $14,700 $11,700 $7,200

Cash Flow (CF) $16,160 $10,260 $13,520 $10,410 ($8,200)

Free Cash Flow (FCF) $15,660 $4,760 $12,320 $4,960 ($48,600)

Free Cash Flow to Equity (FCFE) $15,660 $10,760 $17,320 $8,460 ($30,100)

Free Cash Flow to Firm (FCFF) $15,700 $4,800 $12,360 $5,000 ($48,560)

Free Cash Flow to Firm (FCFF) a.k.a. Unlevered Free Cash Flow
EBIT $18,000 $16,000 $14,200 $11,250 $6,800
Tax (3,600) (3,200) (2,840) (2,250) (1,360)
D&A 500 500 500 450 400
Chang in NWC 1,300 (3,000) 1,700 1,000 (14,000)
Capex (500) (5,500) (1,200) (5,450) (40,400)
Free Cash Flow to the Firm $15,700 $4,800 $12,360 $5,000 ($48,560)