3 Statement Model Strictly Confidential

Table of Contents
3 Statement Model

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.

All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
without prior written permission of the publisher, except in the case of certain noncommercial uses permitted by copyright law.
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Assumptions
Income statement
Revenue Growth (% Change) 15.8% 11.2% 8.4% 5.9% 5.0% 4.5% 4.0% 3.5%
Cost of Goods Sold (% of Revenue) 38.3% 40.7% 37.4% 37.4% 38.0% 37.0% 37.0% 36.0% 36.0%
Salaries and Benefits ($000's) 26,427 22,658 23,872 23,002 25,245 25,000 25,000 25,000 25,000
Rent and Overhead ($000's) 10,963 10,125 10,087 11,020 11,412 10,000 10,000 10,000 10,000
Depreciation & Amortization (% of PP&E Open Bal) 39.0% 39.9% 40.6% 41.2% 41.7% 40.0% 40.0% 40.0% 40.0%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Tax Rate (% of Earnings Before Tax) 31.2% 29.2% 28.7% 29.0% 29.1% 28.0% 28.0% 28.0% 28.0%
Balance Sheet
Accounts Receivable (Days) 18 18 18 18 18 18 18 18 18
Inventory (Days) 73 73 73 72 72 73 73 73 73
Accounts Payable (Days) 37 37 37 36 36 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Debt Issuance (Repayment) ($000's) - - (20,000) - - - - (20,000) -
Equity Issued (Repaid) ($000's) 170,000 - - - - - - - (150,000)

Income Statement
Reveneue 102,007 118,086 131,345 142,341 150,772 158,311 165,435 172,052 178,074
Cost of Goods Sold (COGS) 39,023 48,004 49,123 53,254 57,310 58,575 61,211 61,939 64,107
Gross Profit 62,984 70,082 82,222 89,087 93,462 99,736 104,224 110,113 113,967
Expenses
Salaries and Benefits 26,427 22,658 23,872 23,002 25,245 25,000 25,000 25,000 25,000
Rent and Overhead 10,963 10,125 10,087 11,020 11,412 10,000 10,000 10,000 10,000
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
Interest 2,500 2,500 1,500 900 900 900 900 900 300
Total Expenses 59,390 53,433 52,664 51,466 53,637 50,908 50,905 48,903 53,102
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825 48,827 53,319 61,210 60,865

Taxes 1,120 4,858 8,483 10,908 11,598 13,672 14,929 17,139 17,042
Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156 38,389 44,071 43,823
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Balance Sheet
Assets
Cash 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798 229,912
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807 8,158 8,485 8,782
Inventory 7,805 9,601 9,825 10,531 11,342 11,715 12,242 12,388 12,821
Property & Equipment 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505 36,703
Total Assets 226,376 239,065 240,252 267,319 295,951 331,374 370,030 394,175 288,218

Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938 6,205 6,279 6,498
Debt 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000 10,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 35,938 36,205 16,279 16,498
Shareholder's Equity
Equity Capital 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 20,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 125,436 163,825 207,897 251,720
Shareholder's Equity 172,474 184,265 205,340 232,053 260,280 295,436 333,825 377,897 271,720
Total Liabilities & Shareholder's Equity 226,376 239,065 240,252 267,319 295,951 331,374 370,030 394,175 288,218

Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Cash Flow Statement

Operating Cash Flow
Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156 38,389 44,071 43,823
Plus: Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
Less: Changes in Working Capital 9,003 1,702 775 903 827 375 611 398 511
Cash from Operations 12,971 28,239 37,505 42,354 43,480 49,789 52,783 56,676 61,114

Investing Cash Flow

Investments in Property & Equipment 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Cash from Investing 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000

Financing Cash Flow

Issuance (repayment) of debt - - (20,000) - - - - (20,000) -
Issuance (repayment) of equity 170,000 - - - - - - - (150,000)
Cash from Financing 170,000 - (20,000) - - - - (20,000) (150,000)

Net Increase (decrease) in Cash 167,971 13,239 2,505 27,354 28,480 34,789 42,783 11,676 (98,886)
Opening Cash Balance - 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798
Closing Cash Balance 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798 229,912

Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807 8,158 8,485 8,782
Inventory 7,805 9,601 9,825 10,531 11,342 11,715 12,242 12,388 12,821
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938 6,205 6,279 6,498
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 13,584 14,196 14,594 15,105
Change in NWC 9,003 1,702 775 903 827 375 611 398 511

Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
PPE Closing 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505 36,703

Debt & Interest Schedule

Debt Opening 50,000 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000
Issuance (repayment) - - (20,000) - - - - (20,000) -
Debt Closing 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000 10,000
Interest Expense 2,500 2,500 1,500 900 900 900 900 900 300
 2021
OK

3.0%
35.0%
25,000
10,000
40.0%
3.0%
28.0%

18
73
37
15,000
-
-

183,416
64,196
119,220

25,000
10,000
14,681
300
49,981
69,239

19,387
49,852
 2021
OK

279,174
9,045
12,839
37,022
338,080

6,507
10,000
16,507

20,000
301,572
321,572
338,080

0.000
 2021
OK

49,852
14,681
272
64,261

15,000
15,000

-
-
-

49,261
229,912
279,174

0.000
2021
OK

9,045
12,839
6,507
15,377
272

36,703
15,000
14,681
37,022

10,000
-
10,000
300