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Modelling Fundamentals

Learning Outcomes

1.0 Integrating Income Statement, Balance Sheet and Cash Flows

2.0 Building Cash Flow Statement
3.0 Cross sheet formulas
4.0 Integrity and efficiency tips

Circ switch 0.0

Campbell Soup Company Hist Hist

Assumptions 31-Jul-18 31-Jul-19

Income statement
Sales growth 22.6%
COGS as a % of sales 62.8% 66.6%
SG&A as a % of sales 18.3% 17.6%
Depreciation as a % of last years PPE 12.8%
Amortization ($ amount) 20.0 48.0
Non recurring (expense)/income ($ amount) (705.0) (568.0)
Other income/(expense) ($ amount) 0.0 0.0
Tax rate 28.9% 41.7%
Dividend pay out ratio 163.2% 200.5%
Basic weighted average shares outstanding 301.0 301.0
Diluted weighted average shares outstanding 302.0 302.0
Assets
Other operating current assets as a % of sales 23.0% 18.6%
Capex as a % of sales 6.2% 4.7%
Goodwill 3,864.0 4,017.0
Other long term assets ($ amount) 189.0 127.0
Assets from discontinued operations less liablities 1,981.0 1,061.0
Liabilities
Other operating current liabilities as a % of sales 20.2% 19.1%
Other long term liabilities ($ amount) 1,507.0 1,483.0
Debt
Issuance of long-term debt
Repayment of long-term debt
Interest rates
Interest rate on long-term debt
interest on revolver
Interest rate on cash
Hist Proj Proj Proj Proj Proj

31-Jul-20 31-Jul-21 31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25

7.2% (2.5%) (0.1%) 0.9% 0.9% 1.0%

65.4% 66.8% 66.8% 66.3% 66.2% 66.2%
18.2% 17.3% 17.3% 18.0% 18.4% 18.4%
11.6% 11.6% 11.6% 11.6% 11.6% 11.6%
43.0 43.0 43.0 43.0 43.0 43.0
718.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
9.7% 24.1% 24.0% 24.0% 24.0% 24.0%
26.3% 48.3% 55.3% 54.3% 54.2% 54.2%
302.0 302.0 302.0 302.0 302.0 302.0
304.0 304.0 304.0 304.0 304.0 304.0

17.6% 17.6% 17.6% 17.6% 17.6% 17.6%

3.4% 3.8% 3.9% 3.9% 4.0% 4.9%
3,986.0 3,986.0 3,986.0 3,986.0 3,986.0 3,986.0
283.0 283.0 283.0 283.0 283.0 283.0
0.0 0.0 0.0 0.0 0.0 0.0

21.6% 21.6% 21.6% 21.6% 21.6% 21.6%

1,734.0 1,734.0 1,734.0 1,734.0 1,734.0 1,734.0

0.0 0.0 0.0 0.0 0.0

(2,249.0) 0.0 (1,650.0) 0.0 0.0

4.5% 4.5% 4.5% 4.5% 4.5%

4.5% 4.5% 4.5% 4.5% 4.5%
1.0% 1.0% 1.0% 1.0% 1.0%
Campbell Soup Company Hist Hist Hist Proj

Calculations 31-Jul-18 31-Jul-19 31-Jul-20 31-Jul-21

Property, plant and equipment, net
Beginning balance 2,368.0
Capital expenditure 407.0 384.0 299.0 322.0
Depreciation 274.9
Ending balance 2,368.0 2,415.1

Equity
Beginning balance
Net income
Dividends
Ending balance

OWC
Operating current assets
Operating current liabilities
OWC
 Proj Proj Proj Proj

31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25

 634185659.xlsx Debt

Campbell Soup Company Hist Hist Hist Proj. Proj. Proj. Proj. Proj.
### 31-Jul-18 31-Jul-19 31-Jul-20 31-Jul-21 31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25

Cash flow from operations

Cash flow from investing
Less Dividends
Cash flow generated to service debt
Beginning cash and cash equivalents
Cash available to service debt
Long term debt issuance/(repayment)
Surplus cash/(revolver) requirement

Revolver
Beginning revolver/short term debt
Issue/(repayment)
Ending revolver/short term debt

Long-term debt
Beginning balance
Issuance
Repayment
Ending balance

interest on revolver/short term debt

interest on long term debt
Total Interest Exp.
Interest Income

© Adkins Matchett Toy 2010 Page 6 of 12

Campbell Soup Company Hist Hist Hist Proj

Income Statement (US$ millions) 31-Jul-18 31-Jul-19 31-Jul-20 31-Jul-21

Sales 6,615.0 8,107.0 8,691.0 8,473.7

COGS 4,154.0 5,396.0 5,683.0 5,660.4
Gross Profit 2,461.0 2,711.0 3,008.0 2,813.3

Selling, general, and administrative expense 1,209.0 1,427.0 1,583.0 1,466.0

EBIT 1,252.0 1,284.0 1,425.0 1,347.3

Depreciation 259.0 315.0 285.0 274.9

Amortization 20.0 48.0 43.0 43.0
EBITDA 1,531.0 1,647.0 1,753.0 1,665.2

Non recurring (expense)/income (705.0) (568.0) 718.0 0.0

Other income/(expense) 0.0 0.0 0.0 0.0
Interest expense 183.0 356.0 345.0
Interest income 3.0 2.0 4.0
Earnings Before Tax 367.0 362.0 1,802.0 1,347.3

Tax Expenses 106.0 151.0 174.0 324.7

Net income 261.0 211.0 1,628.0 1,022.6

After tax non recurring (income)/expense 498.0 485.0 (730.0)

Recurring Net income (237.0) (274.0) 2,358.0 1,022.6

Dividends 426.0 423.0 428.0

Shareholder information
Basic weighted average shares outstanding 301.0 301.0 302.0
Diluted weighted average shares outstanding 302.0 302.0 304.0
Earnings per share
Dividends per share
 Proj Proj Proj Proj

31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25

Campbell Soup Company Hist Hist Hist Proj

Balance Sheet 31-Jul-18 31-Jul-19 31-Jul-20 31-Jul-21

Assets
Cash and cash equivalents 49.0 31.0 859.0
Other operating current assets 1,521.0 1,508.0 1,526.0
Total current assets 1,570.0 1,539.0 2,385.0 0.0

Net PPE 2,466.0 2,455.0 2,368.0

Goodwill 3,864.0 4,017.0 3,986.0
Intangible Assets 3,664.0 3,415.0 3,350.0
Other long term assets 189.0 127.0 283.0
Assets of discontinued operations less liabilities 1,981.0 1,061.0 0.0
Total Assets 13,734.0 12,614.0 12,372.0 0.0

Liabilities and Equity

Short term debt/(revolver) 1,135.0 871.0 1,202.0
Other operating current liabilities 1,338.0 1,545.0 1,873.0
Total current liabilities 2,473.0 2,416.0 3,075.0 0.0

Long-term debt 8,381.0 7,603.0 4,994.0

Other long term liabilities 1,507.0 1,483.0 1,734.0
Total liabilities 12,361.0 11,502.0 9,803.0 0.0

Equity 1,373.0 1,112.0 2,569.0

Total liabilities & equity 13,734.0 12,614.0 12,372.0 0.0

Balance Check 0.0 0.0 0.0 0.0

 Proj Proj Proj Proj

31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25

Campbell Soup Company Hist Hist Hist Proj

Calculations 31-Jul-18 31-Jul-19 31-Jul-20 31-Jul-21

 Proj Proj Proj Proj

31-Jul-22 31-Jul-23 31-Jul-24 31-Jul-25