What-If Analysis Template

What-If Model – Users Guide
The What-If Model will allow a team the ability to model the potential financial impact of a variety of initiatives upo
company’s financial statements. This scenario, or “what-if”, modeling will incorporate the company’s historical fina
statements and five-year projections in conjunction with inputs provided by the Quantitative Model. The historical a
projected financial statements provided by the client will serve as the models “base” or “null” state. The inputs prov
by the Quantitative Model provide the variables to be modeled with the client projections. The What-If Model will t
provide expected changes in financial statements and financial statement metrics from the base assumptions. These
expected changes allow the team to target and prioritize the scenarios with the greatest expected benefits. This
prioritization will aid further discussions with management when determining further work to be performed.
The model is segregated into four sections: inputs, calculations, statements, and analysis. Only the input section is
editable. All other sections are protected and read only. The model’s format does have the capacity to be modified
quickly. For example, if a subject business’s financial statements cannot be fit into the current format, the current fo
can be appended or changed to accommodate the different format. Additionally, if the operating assumptions are
inaccurate, they can also be altered to accommodate company-specific assumptions. Outlined below is a description
Section One, and how particular areas operate within the section. Sections Two – Four are protected and therefore h
no operational details.
Input Template:
Project Costs
Segregate Capitalized and Expensed Project Costs based on the expenditure characteristics.
Include project fees
Historical Financial Information
Income Statement - Based on audited financial report data, categorize revenues and expenses into the broad categori
Balance Sheet - Further, categorize assets, liabilities and equity into the appropriate balance sheet line items provided
Operating Assumptions
Pre-Implementation and Base Year: these are darkened to illustrate that they are not inputs, but calculations for infor
Income Statement Assumptions are percentage changes in the current year from the prior year.
Balance Sheet Assumptions are the assumption’s percentage of total assets.
Post-Implementation:
Sales revenue growth percentages are used for all projected years. The financial statements use these percentages by
multiplying theitems’
The following prior year sales years’
projected dollarscosts
by one
areplus the growth
constant rate to
(i.e. equal forthe
each year
base (compounding).
year) and are direct inputs from histor
data: other controllable expenses, other accrued expenses, taxes payable, other current liabilities, long-term notes pay
deferred taxes payable, preferred stock, treasury stock, and dividend distribution to common shareholders.
The following items use growth percentage changes for all projected years: R&D expenses, G&A expenses, interest
expense, interest payable, notes payable, and distributions payable. The financial statements use these percentages b
multiplying the prior year dollars by one plus the growth rate input for each year. Growth is not proportionate to sal
The following items use growth percentage changes for all projected years: selling expenses, accounts receivable,
inventory, prepaid expenses, other current assets, other noncurrent assets, accounts payable, unearned revenue, and c
portion of long-term debt. The financial statements multiply the prior year dollars by one plus the growth rate input.
Further, this product is multiplied by one plus the sales growth input for each year to vary these items proportionally
sales.
sales.
Machinery & Equipment and Building and Plant, for all projected years, are estimated capital expenditures in whole
Intangible Asset Amortization

Additional Assumptions
Client should provide their applicable tax rates, weighted average cost of capital, and interest rate on excess cash.
Further, Asset lives and additional asset information should be captured.
Section Two – Calculations

Protected Sheet, Read-only Access
Section Three – Financial Statements
Section Four - Analysis
variety of initiatives upon a
ompany’s historical financial
Model. The historical and
” state. The inputs provided
he What-If Model will then
se assumptions. These
ted benefits. This
o be performed.
nly the input section is

apacity to be modified
nt format, the current format
ting assumptions are
d below is a description of
rotected and therefore have
into the broad categories provided.

sheet line items provided.
ut calculations for information purposes.
use these percentages by

ng). inputs from historical
direct
ties, long-term notes payable,
shareholders.
G&A expenses, interest
use these percentages by
not proportionate to sales.
accounts receivable,
unearned revenue, and current
us the growth rate input.
ese items proportionally with
l expenditures in whole dollars.
rate on excess cash.

Maximize ERP Project Financial Model Input - 651486535.xls
What-If Model March 19, 2023

5:36 AM
MODEL INPUT
I
Project 2000 2001 2002 2003 2004
Project Costs-Capitalized 5 0 0 0 0
Project Costs-Expensed 1 1 1 1 1
Project Fees 0.5 0.5 0.5 0.5 0.5
Date (MM/DD/YYYY) 7/1/1999
II
Historical Financial Information Pre-Implementation Base Year*
Income Statement 1996 1997 1998 1999
Sales Revenue 111,211

Net Sales Revenue 111,211
Cost of Sales 60,001
Selling Expenses 0
R&D Expenses 0
General and Administrative 7,518
Total Non-Sales Expenses 7,518
Depreciation 4,884
Amortization 0
Other Controllable Expenses 250
Interest Expense 647
Interest Income 0
Miscellaneous Income 0
Income Tax 32,631
Preferred Dividends 0
* Current or Post-Implementation Year
STRICTLY CONFIDENTIAL -- 5 of 21 03/19/2023, 05:36:24

Unaudited Preliminary Draft
For discussion and review purposes only
MODEL INPUT
Historical Financial Information Pre-Implementation Base Year*
Balance Sheet 1996 1997 1998 1999
Current Assets
Cash 1,652
Accounts Receivable 6,860
Inventory 5,472
Prepaid Expenses 875
Other Current Assets 4,790
Noncurrent Assets
Machinery and Equipment 0
Building and Plant 61,962
Accumulated Depreciation 0
Deferred Income Tax Asset 0
Other Noncurrent Assets 2,534
Intangible Assets
Deferred Fin./ License/Startup 0
Goodwill 0
Other Intangibles 0
Accumulated Amortization 0
Current Liabilities
CurInterest Payable 0
Accounts Payable 0 7,677
Other Accrued Expenses 4,445
Unearned Revenue 0
Notes Payable 4,109
Current Portion of Long Term Debt 0
Taxes Payable 2,359
Distributions Payable 0
Other Current Liabilities 8,153
Noncurrent Liabilities
Long-Term Notes 10,901
Deferred Income Tax Liability 10,939
Deferred Taxes Payable 770
Shareholder Equity
Retained Earnings 49,365
Common Equity 2,822
Additional Paid-in Capital 0
Preferred Stock 668
Treasury Stock (16,977)
Other Equity (1,086)
Number of Shares - Common Stock 2,428

MODEL INPUT
III Pre-Implementation Base Year* Post-Implementation Growth
Operating Assumptions 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Income Statement Assumptions
Sales Revenue ### #DIV/0! #DIV/0! 5.00% 5.00% 5.00% 5.00% 5.00%
Other Controllable Expenses 0.00% 250 250 250 250 250 250
R&D Expenses ### #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
Selling Expenses ### #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
General and Administrative ### #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
Projected Expenses
Interest Expense 0 0 0 647 0.0% 0.0% 0.0% 0.0% 0.0%
Pre-Implementation Post-Implementation Percentages

Gross Margin Percentage N/A N/A N/A 46.0% 46.0% 46.0% 46.0% 46.0% 46.0%
Cost of Sales (% Rev) #DIV/0! ### #DIV/0! 54% 54.0% 54.0% 54.0% 54.0% 54.0%

MODEL INPUT
Pre-Implementation Base Year* Post-Implementation Growth
Operating Assumptions 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Balance Sheet Items
Current Assets
Accounts Receivable #DIV/0! ### #DIV/0! 8% 0% 0% 0% 0% 0%
Inventory #DIV/0! ### #DIV/0! 7% 0% 0% 0% 0% 0%
Prepaid Expenses #DIV/0! ### #DIV/0! 1% 0% 0% 0% 0% 0%
Other Current Assets #DIV/0! ### #DIV/0! 6% 0% 0% 0% 0% 0%
Noncurrent Assets
Capital Expenditures:
Machinery and Equipment 0 0 #DIV/0! 0% $0.00 $0.00 $0.00 $0.00 $0.00
Building and Plant 0 0 0 74% $0.00 $0.00 $0.00 $0.00 $0.00
Other Noncurrent Assets #DIV/0! ### #DIV/0! 3% 0% 0% 0% 0% 0%
Current Liabilities
Interest Payable 0 0 0 0 0% 0% 0% 0% 0%
Accounts Payable #DIV/0! ### #DIV/0! 7% 0% 0% 0% 0% 0%
Other Accrued Expenses 0 0 0 4,445 0% 0% 0% 0% 0%
Unearned Revenue #DIV/0! ### #DIV/0! 0% 0% 0% 0% 0% 0%
Notes Payable 0 0 0 4,109 0% 0% 0% 0% 0%
Current Portion of Long Term Debt #DIV/0! ### #DIV/0! 0% 0% 0% 0% 0% 0%
Taxes Payable 0 0 0 2,359 0% 0% 0% 0% 0%
Distributions Payable 0 0 0 0 0% 0% 0% 0% 0%
Other Current Liabilities 0 0 0 8,153 0% 0% 0% 0% 0%
Long-Term Notes Payable 0 0 0 10,901 0% 0% 0% 0% 0%
Deferred Taxes Payable 0 0 0 770 0% 0% 0% 0% 0%
Equity Assumptions
Preferred Stock 0 0 0 668 668 668 668 668 668
Treasury Stock 0 0 0 (16,977) (16,977) (16,977) (16,977) (16,977) (16,977)
Cash Flow Assumptions
Preferred Stock Dividends 6%
Dividend Distributions to Common Shareholders
Days in Year 365

MODEL INPUT
IV
Intangible Assets Amortization Percent
Period Amortizable
Deferred Fin./ License/Startup 10
Goodwill 40
Other Intangibles 5
Project Costs-Capitalized 10
Project Fees 10 100.00%
V
Additional Assumptions
Effective Federal Income Tax Rate 86.07%
Weighted Average Cost of Capital 10.00%
Effective State Income Tax Rate 0.00%
Interest Income Rate on Excess Cash Balances 0.00%
Asset Lives
Machinery and Equipment 7
Building and Plant 15
Fair Market Value of Assets in Excess of Book:

Inventory 0
Fixed Assets 0
Current Liabilities Assumed 0

Maximize ERP Project Financial Model Calculations - 651486535.xls

5:36 AM
CALCULATIONS
Book Depreciation Existing 2000 2001 2002 2003 2004
Existing Basis Life Basis
Machinery and Equipment 7 0 0 0 0 0 ###
0
Building and Plant 12.70 61,962 4,879 4,879 4,879 4,879 4,879
Total 4,879 4,879 4,879 4,879 4,879
Incremental Capital Expenditures

2000 Machinery and Equipment 0 0 0 0 0
2000 Building and Plant 0 0 0 0 0
0 0 0 0 0
2001 Machinery and Equipment 0 0 0 0
2001 Building and Plant 0 0 0 0
0 0 0 0
2002 Machinery and Equipment 0 0 0
2002 Building and Plant 0 0 0
0 0 0
2003 Machinery and Equipment 0 0
2003 Building and Plant 0 0
0 0
2004 Machinery and Equipment 0
2004 Building and Plant 0
0
Total Book Depreciation 4,879 4,879 4,879 4,879 4,879

CALCULATIONS
Income Taxes 2000 2001 2002 2003 2004
Income from Continuing Operations 40,475 43,164 45,986 48,951 52,063

Taxable Income Before NOL 40,475 43,164 45,986 48,951 52,063
Less: NOL Utilized 0 0 0 0 0
Taxable Income 40,475 43,164 45,986 48,951 52,063

Blended
Cash Income Taxes State @ 0.00% Federal @ 86.07% 86.07% 34,837 37,151 39,581 42,132 44,810
Income Taxes, per Books 34,837 37,151 39,581 42,132 44,810
Current Year Deferred Income Tax Benefit (Expense) - Temporary Difference 0 0 0 0 0
Cumulative Deferred Income Tax Asset (Liability) 0 0 0 0 0
Net Operating Loss (“NOL”), Beginning Balance 0 0 0 0 0

Additional NOL Created 0 0 0 0 0
NOL Utilized 0 0 0 0 0
NOL, Ending Balance 0 0 0 0 0

CALCULATIONS
Intangible Asset Amortization Existing 2000 2001 2002 2003 2004
Life Basis
Lic. Agr. / Def. Fin. 10
Beginning Balance 0 0 0 0 0
Amortization 0 0 0 0 0
Ending Balance 0 0 0 0 ###
0
Goodwill 40
Ending Balance 0 0 0 0 0
Incremental Project Expenditures

Project Costs-Capitalized 10
Project Fees 10
2000 Project Costs-Capitalized 0 1 1 1 1

2000 Project Fees 0 0 0 0 0
0 1 1 1 1
2001 Project Costs-Capitalized 0 0 0 0
2001 Project Fees 0 0 0 0
0 0 0 0
2002 Project Costs-Capitalized 0 0 0
2002 Project Fees 0 0 0
0 0 0
2003 Project Costs-Capitalized 0 0
2003 Project Fees 0 ###
0
0 0
2004 Project Costs-Capitalized 0
2004 Project Fees 0
0
Other Intangibles 5
Ending Balance 0 0 0 0 0
Total Amortization 0 1 1 1 1

CALCULATIONS
Pre-Implementation Post-Implementation
1996 1997 1998 1999 2000 2001 2002 2003 2004
###
SVA
Income From Continuing Operations 0 0 0 37,911 40,475 43,164 45,986 48,951 52,063
Less: W.A.C.C. x (Total Noncurrent Assets + Working Capital) 0 0 0 5,740 6,300 6,897 7,534 8,212 8,933
SVA 0 0 0 32,171 34,175 36,266 38,453 40,739 43,130
NPV & IRR

Net Cash Flow 9,829 10,177 10,536 10,914 11,310
Less: Total Project Costs 7 2 2 2 2
Cash Outflow/Inflow 9,823 10,175 10,535 10,912 11,309


Maximize ERP Project Financial Model Statements - 651486535.xls

5:36 AM
BALANCE SHEET (Million of Dollars)
ASSETS 1996 1997 1998 1999 2000 2001 2002 2003 2004
Current Assets
Cash 0 0 0 1,652 11,481 21,658 32,194 43,108 54,418
Accounts Receivable 0 0 0 6,860 7,203 7,563 7,941 8,338 8,755
Inventory 0 0 0 5,472 5,746 6,033 6,335 6,651 6,984
Prepaid Expenses 0 0 0 875 919 965 1,013 1,064 1,117
###
Other Current Assets 0 0 0 4,790 5,030 5,281 5,545 5,822 6,113
Total Current Assets 0 0 0 19,649 30,378 41,500 53,028 64,983 77,387
Noncurrent Assets
Machinery and Equipment 0 0 0 0 0 0 0 0 0
Building and Plant 0 0 0 61,962 61,962 61,962 61,962 61,962 61,962
Less: Accumulated Depreciation 0 0 0 0 (4,879) (9,758) (14,637) (19,516) (24,394)
Net Fixed Assets 0 0 0 61,962 57,083 52,204 47,325 42,446 37,568
Deferred Income Tax Asset 0 0 0 0 0 0 0 0 0

Other Noncurrent Assets 0 0 0 2,534 2,661 2,794 2,933 3,080 3,234
Intangible Assets
Deferred Fin./ License/Startup 0 0 0 0 0 0 0 0 0
Goodwill 0 0 0 0 0 0 0 0 0
Project Costs-Capitalized 5 5 5 5 ###
5
Project Fees 1 1 2 2 ###
3
Other Intangibles 0 0 0 0 0 0 0 0 0
Less: Accumulated Amortization (0) (1) (1) (2) (3)
Total Intangible Assets 0 0 0 0 5 5 5 5 5
Total Noncurrent Assets 0 0 0 64,496 59,749 55,003 50,264 45,531 40,806
Total Assets 0 0 0 84,145 90,127 96,503 103,292 110,515 118,194

BALANCE SHEET (Million of Dollars)
LIABILITIES 1996 1997 1998 1999 2000 2001 2002 2003 2004
Current Liabilities
Interest Payable 0 0 0 0 0 0 0 0 ###
0
Accounts Payable 0 0 0 7,677 8,061 8,464 8,887 9,331 9,798
Other Accrued Expenses 0 0 0 4,445 4,445 4,445 4,445 4,445 4,445
Unearned Revenue 0 0 0 0 0 0 0 0 0
Notes Payable 0 0 0 4,109 4,109 4,109 4,109 4,109 4,109
###
Current Portion of Long Term Debt 0 0 0 0 0 0 0 0 0
Taxes Payable 0 0 0 2,359 2,359 2,359 2,359 2,359 2,359
###
Distributions Payable 0 0 0 0 0 0 0 0 ###
0
Other Current Liabilities 0 0 0 8,153 8,153 8,153 8,153 8,153 8,153
Total Current Liabilities 0 0 0 26,743 27,127 27,530 27,953 28,397 28,864
Long-Term Notes 0 0 0 10,901 10,901 10,901 10,901 10,901 10,901
Deferred Income Tax Liability 0 0 0 10,939 10,939 10,939 10,939 10,939 10,939
Deferred Taxes Payable 0 0 0 770 770 770 770 770 770
Total Noncurrent Liabilities 0 0 0 22,610 22,610 22,610 22,610 22,610 22,610
Total Liabilities 0 0 0 49,353 49,737 50,140 50,563 51,007 51,474
SHAREHOLDER’S EQUITY
Retained Earnings 0 0 0 49,365 54,963 60,936 67,302 74,080 81,293

Common Equity 0 0 0 1,736 1,736 1,736 1,736 1,736 1,736
Additional Paid in Capital 0 0 0 0 0 0 0 0 0
Preferred Stock 0 0 0 668 668 668 668 668 668
###
Treasury Stock 0 0 0 (16,977) (16,977) (16,977) (16,977) (16,977) (16,977)
###
Total Shareholder’s Equity 0 0 0 34,792 40,390 46,363 52,729 59,507 66,720
Total Liabilities and Shareholder’s Equity 0 0 0 84,145 90,127 96,503 103,292 110,515 118,194

STATEMENT OF INCOME AND RETAINED EARNINGS (Million of Dollars)
1996 1997 1998 1999 2000 2001 2002 2003 2004
Sales Revenue 0 0 0 111,211 116,772 122,610 128,741 135,178 141,937

###
Net Sales Revenue 0 0 0 111,211 116,772 122,610 128,741 135,178 141,937
Cost of Sales 0 0 0 60,001 63,001 66,151 69,459 72,932 76,578
Gross Margin on Sales 0 0 0 51,210 53,771 56,459 59,282 62,246 65,358
Gross Margin Percentage N/A 46.05% 46.05% 46.05% 46.05% 46.05% 46.05%
Expense Projections '99 Forward

Project Costs-Expensed 1 1 1 1 ###
1
R&D Expenses 0 0 0 0 0 0 0 0 0
Other Controllable Expenses 250 250 250 250 250 250
Selling Expenses 0 0 0 0 0 0 0 0 0
General and Admin Expenses 0 0 0 7,518 7,518 7,518 7,518 7,518 7,518
Total Non-Sales Expenses 0 0 0 7,768 7,769 7,769 7,769 7,769 7,769
###
Earnings Before Interest, Tax, Depr. and Amort. 0 0 0 43,442 46,002 48,690 51,513 54,477 57,589
###
Depreciation 0 0 0 4,884 4,879 4,879 4,879 4,879 4,879

Amortization 0 0 0 0 0 1 1 1 1
Total Operating Expenses 0 0 0 12,652 12,648 12,648 12,649 12,649 12,649
Earnings Before Interest and Tax (“EBIT”) 0 0 0 38,558 41,122 43,811 46,633 49,598 52,710
Total Interest Expense 0 0 0 647 647 647 647 647 647

###
Interest Income 0 0 0 0 0 0
Miscellaneous Income 0 0 0 0 0 0 0 0 ###
0
Income from Continuing Operations 0 0 0 37,911 40,475 43,164 45,986 48,951 52,063
Provision for State & Federal Tax 0 0 0 32,631 34,837 37,151 39,581 42,132 44,810
Net Income Before Dividends 0 0 0 5,280 5,638 6,013 6,406 6,819 7,252
Preferred Dividends 0 0 0 0 40 40 40 40 40
Net Income Available to Common Shareholders 0 0 0 5,280 5,598 5,973 6,366 6,779 7,212
Retained Earnings, Beginning of Period 0 49,365 54,963 60,936 67,302 74,080

Less: Dividends (40) (40) (40) (40) (40)
Retained Earnings, End of Period 0 0 0 5,280 54,963 60,936 67,302 74,080 81,293

CASH FLOW STATEMENT (Million of Dollars)
1996 1997 1998 1999 2000 2001 2002 2003 2004
Net Income Before Dividends 5,638 6,013 6,406 6,819 7,252

Adjustments to Reconcile Net Income to Cash from Operations
Project Costs-Capitalized (5) 0 0 0 0
Project Fees (1) (1) (1) (1) ###
(1)
Depreciation and Amortization 4,879 4,879 4,880 4,880 4,880
Change in Accounts Receivable (343) (360) (378) (397) (417)
Change in Inventory (274) (287) (302) (317) (333)
Change in Prepaid Expenses (44) (46) (48) (51) (53)
Change in Other Current Assets (240) (251) (264) (277) (291)
Change in Total Current Assets 0 0 0 0 (900) (945) (992) (1,042) (1,094)
Change in Interest Payable 0 0 0 0 ###
0
Change in Accounts Payable 384 403 423 444 467
Change in Current Portion of Long Term Debt 0 0 0 0 0
Accrued Expenses and Bonuses 0 0 0 0 0
Change in Customer Deposits 0 0 0 0 0
Change in Total Current Liabilities 0 0 0 0 384 403 423 444 467
###
Change in Other Noncurrent Assets (127) (133) (140) (147) (154)
Change in Deferred Income Tax 0 0 0 0 0
Change in Deferred Taxes Payable 0 0 0 0 0
Cash Provided (Used) by Operating Activities 0 0 0 0 9,869 10,217 10,576 10,954 11,350
###
Investing Activities
Capital Expenditures: 0 0 0 0 0
Cash Provided (Used) by Investing Activities 0 0 0 0 0 0 0 0 0
Financing Activities
Change in Long-Term Notes 0 0 0 0 0
Change in Notes Payable 0 0 0 0 0
Preferred Dividends (40) (40) (40) (40) (40)
Cash Provided (Used) by Financing Activities (40) (40) (40) (40) (40)
Net Cash Flow Available to Common Shareholders 0 0 0 0 9,829 10,177 10,536 10,914 11,310
Dividend Distributions to Common Shareholders 0 0 0 0 0

Net Cash Flow 0 0 0 0 9,829 10,177 10,536 10,914 11,310
Cash, Beginning Balance 1,652 11,481 21,658 32,194 43,108

Cash, Ending Balance 0 0 0 0 11,481 21,658 32,194 43,108 54,418

DIAGNOSTIC SUMMARY Check 2000 2001 2002 2003 2004
Balance Sheet Items

>>> Cash Balances OK 0 0 0 0 0 0
>>> Balance Sheet in Balance 0 0 0 0 0 0
>>> Retained Earnings OK 0 0 0 0 0 0


Maximize ERP Project Financial Model Analyses - 651486535.xls

5:36 AM
ANALYSIS
Financial and Operating Ratios 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Liquidity Ratios
Current Ratio (Current Assets/Current Liabilities) 0.7 1.1 1.5 1.9 2.3 2.7
Quick Ratio (Cash, Equivalents and Accounts Receivable/Current Liabilities) 0.3 0.7 1.1 1.4 1.8 2.2
Working Capital (Current Assets Less Current Liabilities) (7,094) 3,251 13,970 25,075 36,586 48,523
Activity Ratios
Sales/Average Receivables 32.4 16.6 16.6 16.6 16.6 16.6
Days in Average Receivables 11.3 22.0 22.0 22.0 22.0 22.0
Cost of Sales/Average Inventory 21.9 11.2 11.2 11.2 11.2 11.2
Days in Average Inventory 16.6 32.5 32.5 32.5 32.5 32.5
Cost of Sales/Average Accounts Payable 15.6 8.0 8.0 8.0 8.0 8.0
Days in Average Accounts Payable 23.4 45.6 45.6 45.6 45.6 45.6
Working Capital Turnover (Net Sales Revenue/(Average Working Capital) (15.7) 35.9 14.2 6.6 4.4 3.3
Fixed Asset Turnover (Net Sales Revenue/Average Net Fixed Assets) 3.6 2.0 2.2 2.6 3.0 3.5
Asset Turnover (Net Sales Revenue/Average Total Assets) 2.6 1.3 1.3 1.3 1.3 1.2
Profitability Ratios
Net Income/Average Shareholder’s Equity 0.30 0.15 0.14 0.13 0.12 0.11
Growth
Sales Growth 5% 5% 5% 5% ###
5%
EPS 2.17 2.32 2.48 2.64 2.81 2.99
###
Cost
NI/Sales (Profit Margin) 5% 5% 5% 5% 5% ###
5%
Gross Margin 46% 46% 46% 46% 46% 46%
###
SG&A as a % of Sales 7% 7% 6% 6% 6% ###
5%
Capital
Assets/Sales #DIV/0! #DIV/0! #DIV/0! 76% 77% 79% 80% 82% 83%
SVA 0 0 0 32,171 34,175 36,266 38,453 40,739 43,130
Project
ROI #DIV/0! #DIV/0! #DIV/0! 15% 14% 13% 12% 11% 11%
NPV $39,729
IRR Err:523


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What-If Model – Users Guide

Intangible Asset Amortization

Section Two – Calculations

nly the input section is

into the broad categories provided.

ut calculations for information purposes.

use these percentages by

rate on excess cash.

What-If Model March 19, 2023

Project Fees 0.5 0.5 0.5 0.5 0.5

Date (MM/DD/YYYY) 7/1/1999

Sales Revenue 111,211

* Current or Post-Implementation Year

STRICTLY CONFIDENTIAL -- 5 of 21 03/19/2023, 05:36:24

STRICTLY CONFIDENTIAL -- 6 of 21 03/19/2023, 05:36:24

Pre-Implementation Post-Implementation Percentages

* Current or Post-Implementation Year

STRICTLY CONFIDENTIAL -- 7 of 21 03/19/2023, 05:36:24

Days in Year 365

* Current or Post-Implementation Year

STRICTLY CONFIDENTIAL -- 8 of 21 03/19/2023, 05:36:24

Deferred Fin./ License/Startup 10

Project Fees 10 100.00%

Effective Federal Income Tax Rate 86.07%

Weighted Average Cost of Capital 10.00%

Effective State Income Tax Rate 0.00%

Interest Income Rate on Excess Cash Balances 0.00%

Building and Plant 15

Fair Market Value of Assets in Excess of Book:

Current Liabilities Assumed 0

STRICTLY CONFIDENTIAL -- 9 of 21 03/19/2023, 05:36:24

What-If Model March 19, 2023

Incremental Capital Expenditures

STRICTLY CONFIDENTIAL -- 10 of 21 03/19/2023, 05:36:24

Income from Continuing Operations 40,475 43,164 45,986 48,951 52,063

Less: NOL Utilized 0 0 0 0 0

Taxable Income 40,475 43,164 45,986 48,951 52,063

Cumulative Deferred Income Tax Asset (Liability) 0 0 0 0 0

Net Operating Loss (“NOL”), Beginning Balance 0 0 0 0 0

STRICTLY CONFIDENTIAL -- 11 of 21 03/19/2023, 05:36:24

Incremental Project Expenditures

2000 Project Costs-Capitalized 0 1 1 1 1

STRICTLY CONFIDENTIAL -- 12 of 21 03/19/2023, 05:36:24

NPV & IRR

STRICTLY CONFIDENTIAL -- 13 of 21 03/19/2023, 05:36:24

STRICTLY CONFIDENTIAL -- 14 of 21 03/19/2023, 05:36:24

What-If Model March 19, 2023

BALANCE SHEET (Million of Dollars)

Deferred Income Tax Asset 0 0 0 0 0 0 0 0 0

Total Noncurrent Assets 0 0 0 64,496 59,749 55,003 50,264 45,531 40,806

Total Assets 0 0 0 84,145 90,127 96,503 103,292 110,515 118,194

STRICTLY CONFIDENTIAL -- 15 of 21 03/19/2023, 05:36:24

BALANCE SHEET (Million of Dollars)

Total Liabilities 0 0 0 49,353 49,737 50,140 50,563 51,007 51,474

Retained Earnings 0 0 0 49,365 54,963 60,936 67,302 74,080 81,293

STRICTLY CONFIDENTIAL -- 16 of 21 03/19/2023, 05:36:25

STATEMENT OF INCOME AND RETAINED EARNINGS (Million of Dollars)

Sales Revenue 0 0 0 111,211 116,772 122,610 128,741 135,178 141,937

Expense Projections '99 Forward

Depreciation 0 0 0 4,884 4,879 4,879 4,879 4,879 4,879

Total Interest Expense 0 0 0 647 647 647 647 647 647

Retained Earnings, Beginning of Period 0 49,365 54,963 60,936 67,302 74,080

STRICTLY CONFIDENTIAL -- 17 of 21 03/19/2023, 05:36:25

CASH FLOW STATEMENT (Million of Dollars)