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5 year budget/forecase: Income Statement, Balance Sheet, Cash Flow Statement

- Financials
- Assumptions

Price Volume Mix Template

any other reason.
Inputs Actuals / Historical
Hardcodes 2015 2016 2017 2018
calculation/formula

Income Statement
Revenue 47,011 38,537 45,462 54,722
Cost of Goods Sold (COGS) 33,284 27,782 31,087 36,815
Gross Profit 13,727 10,755 14,375 17,907
Expenses
Selling, General, and Administrative (SG&A) 1,905 1,349 2,122 2,712
Depreciation 3,046 3,034 2,877 2,766
R&D 2,119 1,853 1,842 1,850
Other Operating Expense 2,872 3,357 2,989 2,286
Operating Income 3,785 1,162 4,545 8,293
Interest / Other 346 1,023 463 471
Income before Taxes 3,439 139 4,082 7,822
Taxes 927 206 957 1,779
Net Income 2,512 (67) 3,125 6,043

Balance Sheet
A= L + OE … check okay okay okay okay
Assets
Cash and Equivalents 6,460 16,946 21,587 28,498
Accounts Receivable 15,668 14,441 13,891 14,278
Inventory 11,380 10,358 11,298 12,589
Total Current Assets 33,508 41,745 46,776 55,365
Property, Plant, and Equipment (net of dep) 20,126 18,092 16,215 14,449
Total Non-current Assets 20,126 18,092 16,215 14,449
Total Assets 53,634 59,837 62,991 69,814
Liabilities
Accounts Payable 6,419 7,189 7,218 6,998
Debt 14,013 14,513 14,513 15,513
Total Current Liabilities 20,432 21,702 21,731 22,511
Long-Term Debt 18,317 23,317 23,317 23,317
Total Long-term Liabilities 18,317 23,317 23,317 23,317
Total Liabilities 38,749 45,019 45,048 45,828
Shareholder's Equity
Common Stock / Equity Capital 3,279 3,279 3,279 3,279
Retained Earnings 11,606 11,539 14,664 20,707
Total Shareholder's Equity 14,885 14,818 17,943 23,986
Total Liabilities + Shareholder's Equity 53,634 59,837 62,991 69,814

Cash Flow Statement

Cash Flow from Operating Activities
Net Income 2,512 (67) 3,125 6,043
Plus: Depreciation / Amortization 3,046 3,034 2,877 2,766
Changes in working capital: 1,141 3,019 (361) (1,898)
A/R 257 1,227 550 (387)
Inventory 642 1,022 (940) (1,291)
A/P 242 770 29 (220)
Cash Flow from Operating Activities 6,699 5,986 5,641 6,911

Cash Flow from Investing Activities

Purchases of Property, Plant, and Equipment (2,000) (1,000) (1,000) (1,000)
Cash Flow from Investing Activities (2,000) (1,000) (1,000) (1,000)

Cash Flow from Financing Activities

Increase / (Decrease) in Debt 1,000 5,500 - 1,000
Increase / (Decrease) in Stock - - - -
(Dividends Paid) - - - -
Cash Flow from Financing Activities 1,000 5,500 - 1,000

Increase / (Decrease) in Cash 5,699 10,486 4,641 6,911

Cash at Beginning of Year - 6,460 16,946 21,587

Net Change in Cash - 10,486 4,641 6,911
Cash at End of Year 6,460 16,946 21,587 28,498
Cash from PY + Change = Cash on B/S okay okay okay okay
 Forecast
2019 2020 2021 2022 2023 2024

53,800 57,034 59,910 66,512 72,331 76,712

36,508 37,925 39,196 43,267 46,146 47,961
17,292 19,109 20,714 23,245 26,185 28,751

2,585 2,663 2,730 2,880 3,006 3,097

2,577 2,286 2,147 1,992 1,904 1,815
1,693 2,269 2,384 2,647 2,878 3,052
2,147 2,529 2,657 2,949 3,207 3,402
8,290 9,361 10,797 12,777 15,189 17,385
478 578 563 548 384 370
7,812 8,783 10,234 12,229 14,804 17,015
1,897 2,133 2,485 2,969 3,595 4,132
5,915 6,651 7,749 9,259 11,209 12,883

-
okay okay okay error error okay

38,102 43,271 51,128 58,639 58,620 70,861

13,789 13,836 13,714 14,678 15,368 15,668
11,092 11,315 11,479 12,434 13,009 13,258
62,983 68,422 76,321 85,752 86,997 99,787
12,872 12,086 11,214 10,722 10,218 9,703
12,872 12,086 11,214 10,722 10,218 9,703
75,855 80,507 87,535 96,474 97,215 109,489

7,124 5,126 5,405 6,085 6,616 7,008

15,513 20,513 20,513 20,513 10,513 10,513
22,637 25,639 25,918 26,598 17,129 17,521
23,317 18,317 17,317 16,317 15,317 14,317
23,317 18,317 17,317 16,317 15,317 14,317
45,954 43,956 43,235 42,915 32,446 31,838

3,279 3,279 3,279 3,279 3,279 3,279

26,622 33,273 41,021 50,280 61,489 74,373
29,901 36,552 44,300 53,559 64,768 77,652
 75,855 80,507 87,535 96,474 97,215 109,489

5,915 6,651 7,749 9,259 11,209 12,883

2,577 2,286 2,147 1,992 1,904 1,815
2,112 (2,268) 238 (1,240) (733) (157)
489 (47) 123 (965) (690) (300)
1,497 (223) (165) (955) (575) (249)
126 (1,998) 279 680 531 392
10,604 6,669 10,133 10,011 12,381 14,541

(1,000) (1,500) (1,275) (1,500) (1,400) (1,300)

(1,000) (1,500) (1,275) (1,500) (1,400) (1,300)

- - (1,000) (1,000) (11,000) (1,000)

- - - - - -
- - - - - -
- - (1,000) (1,000) (11,000) (1,000)

9,604 5,169 7,858 7,511 (19) 12,241

28,498 38,102 43,271 51,128 58,639 58,620

9,604 5,169 7,858 7,511 (19) 12,241
38,102 43,271 51,128 58,639 58,620 70,861
okay okay okay okay okay okay
Inputs Actuals / Historical
Hardcodes 2015 2016 2017 2018 2019
calculation/formula

Income Statement Assumptions

Revenue
Total Revenue Forecast 47,011 38,537 45,462 54,722 53,800

COGS
Total Cost Forecast 33,284 27,782 31,087 36,815 36,508

Selling, General, and Administrative (SG&A)

SG&A Forecast 1,905 1,349 2,122 2,712 2,585

Depreciation
***need to wait until you have forecast P&E Adds
***Calculation below in "Property, Plant, and Equipment (net of dep)" section

R&D
R&D forecast 2,119 1,853 1,842 1,850 1,693

Other Operating Expense

Forecast Other Operating Expen 2,872 3,357 2,989 2,286 2,147

Interest / Other
***Calculation below in "Debt & Interest Schedule" section

Taxes
Forecast Tax Expense 927 206 957 1,779 1,897

Balance Sheet Assumptions

Cash & Equivalents
Cash will calculate automatically from the statement of cash flows taking prior year end cash and adding the net
Working Capital
A/R
Inventory
A/P

Method 1
There are several ways you could calculate A/R, Inventory, A/P with different "bottoms-up" type forecasts.
These methods would be derivatives from the businesses demand forecast in addition to the composite build an
Bottom-up methodolgies can be effective and worth exploring depending on your business

Method 2
Use "days" to calculate, but take into considerations movements or targets

A/R days 122 137 112 95 94

Inventory days 125 136 133 125 111
A/P Days 50 68 58 47 48

Improvements or Changes to be driven

A/R
Inventory
A/P

A/R forecast 15,668 14,441 13,891 14,278 13,789

Inventory forecast 11,380 10,358 11,298 12,589 11,092
A/P forecast 6,419 7,189 7,218 6,998 7,124

Property, Plant, and Equipment & Depreciation Expense

Forecast Depreciation Expense 3,046 3,034 2,877 2,766 2,577
Forecast PP&E ending balance 20,126 18,092 16,215 14,449 12,872

Debt & Interest Schedule

Debt (B/S) - Short term
Debt (B/S) - Long term
Interest / other (I/S)

Method 1
Use depreciation expense and a roll-up of capital expenditures planned / budgeted to get to Debt balance
Use interest as a % of debt to calculate what annual interest expense will be
It's important to note this could be done at a very high level on what business is willing to spend, or it could be v

Interest as % of Debt 1% 3% 1% 1% 1%
Average % 1%

Short term
Opening balance
Debt Issuance / (Debt Repayment)
Forecast Short-term Debt endin 14,013 14,513 14,513 15,513 15,513
Forecast Long-term Debt endin 18,317 23,317 23,317 23,317 23,317

Forecast Interest Expense 346 1,023 463 471 478

Common Stock / Equity Capital

Forecast Equity ending balance 3,279 3,279 3,279 3,279 3,279

Retained Earnings
Forecast Retained Earnings 11,606 11,539 14,664 20,707 26,622
 Forecast
2020 2021 2022 2023 2024

57,034 59,910 66,512 72,331 76,712

6% 5% 11% 9% 6%

37,925 39,196 43,267 46,146 47,961

4% 3% 10% 7% 4%

2,663 2,730 2,880 3,006 3,097

2,269 2,384 2,647 2,878 3,052

2,529 2,657 2,949 3,207 3,402

2,133 2,485 2,969 3,595 4,132

r end cash and adding the net change in cash

 oms-up" type forecasts.
tion to the composite build and burn of each.

89 84 81 78 75
109 107 105 103 101
49 50 51 52 53
*note that A/P you want to increase, not decrease… so you add the days vs. subtract

5 5 3 3 3
2 2 2 2 2
1 1 1 1 1

13,836 13,714 14,678 15,368 15,668

11,315 11,479 12,434 13,009 13,258
5,126 5,405 6,085 6,616 7,008

2,286 2,147 1,992 1,904 1,815

12,086 11,214 10,722 10,218 9,703

to get to Debt balance

lling to spend, or it could be very detailed with a full roll-up of purchases intended

15,513 20,513 20,513 20,513 10,513

 5,000 - - (10,000) -
20,513 20,513 20,513 10,513 10,513
18,317 17,317 16,317 15,317 14,317

578 563 548 384 370

3,279 3,279 3,279 3,279 3,279

33,273 41,021 50,280 61,489 74,373

 '18 Actuals '19 Actuals
Net Profit Net Profit
Units Sales COGS Profit % Units Sales COGS Profit % Rev V
Product A 4 100 40 60 60% 2 54 20 34 63% (46)
Product B 10 100 55 45 45% 15 150 90 60 40% 50
Total 14 200 95 105 53% 17 204 110 94 46% 4
 '18 vs '19 Variance Price Impact
'18 Price / '19 Price / Change in
Rev V% COGS V COGS V% Profit V Profit V% Unit Unit Price
-46% (20) -50% (26) -43% 25.0 27.0 2.0
50% 35 64% 15 33% 10.0 10.0 -
2% 15 16% (11) -10% 14.3 12.0 2.0

Mix Impact
% of Volume % of Volume Change in %
'18 '19 of Volume
29% 12% -17%
71% 88% 17%
100% 100%

Volume Impact
Change in
Units in '18 Units in '19 Units
4.0 2.0 (2.0)
10.0 15.0 5.0
14.0 17.0 3.0

Cost Impact
'18 Cost / '19 Cost / Change in
Unit Unit Cost
10.0 10.0 -
5.5 6.0 0.5
15.5 16.0 0.5
 Sales Price-Mix-Volume Walk
Price Impact Price Impact
(Sales) (Profit) '18 Price Mix Volume
4.0 4.0 Product A 100 4 (31) (19)
- - Product B 100 - (12) 62
4.0 4.0 TOTAL 200 4 (43) 43

Profit Price-Mix-Volume Walk

Mix Impact Mix Impact
(Sales) (Profit) '18 Price Mix Volume
(30.6) (18.37) Product A 60 4 (18) (12)
(12.2) (5.51) Product B 45 - (6) 28
(42.9) (23.88) TOTAL 105 4 (24) 16

Volume Impact Volume Impact

(Sales) (Profit)
(19.4) (11.63)
62.2 28.01
42.9 16.38

Cost Impact Cost Impact

(Sales) (Profit)
- -
- (7.5)
- -7.5
Cost '19 check
- 54 54
- 150 150
- 204 204

Cost '19 check

- 34 34
(8) 60 60
(8) 94 94