Instructions

This spreadsheet contains basic templates of the financial statements for your LBA. It is recommended that you follow it. Most
There are different ways to estimate the values of the variables you need. The point of the LBA is not to get the numbers exac
Notes are provided throughout the template to remind you of the accounting rules that ensure appropriate financial statements
It is recommended that you start by estimating the Income Statement, then the Balance Sheet, then the Cash Flow Statem
Be sure you understand the implications of your results and check the plausibility of the overall narrative.
Make a copy of this template but do not show your name anywhere in your spreadsheet or title (to allow for blind grad

Blue is used for given or realized values.

Black is used for values calculated or estimated.
ed that you follow it. Most probably you will be provided by the data if not you will need to estimate its values. For this you should have your
t to get the numbers exactly right so it's ok if your estimates are very rough.
priate financial statements.
hen the Cash Flow Statement. Build your DCF model last.

e (to allow for blind grading).

ues. For this you should have your questions ready to ask.
 INCOME STATEMENT

Data for the calendar year period: 2022 2023

Revenue 302,231,360 ?
Cost of Goods Sold -190,041,770 ?
Fixed Costs
Variable Costs

Gross Income ? ?

Selling, General, and Administrative -41,654,659 ?

Marketing Expense ? ?
Research & Development -24,919,198 ?

Operating Income ? ?

Interest 824,741 ?
Taxes 9,213,603 ?

Net Income ? ?
 (You can use the space below to
Notes about Assumptions: be sure you label them clearly so
 can use the space below to make necessary assumptions and calculations;
ure you label them clearly so that it's clear how they are related to the statement)
 BALANCE SHEET

Data as of December 31: 2022 2023

Assets
Current Assets
Cash ? ?
Accounts Receivable ? ?
Inventory ? ?

Long-term Assets
Gross Property, Plant, and Equipment ? ?
Accumulated Depreciation ? ?
Net Property, Plant, and Equipment ? ?

Total Assets ? ?

Liabibilities + Shareholder's Equity

Current Liabilities
Accounts Payable ? ?

Long Term Liabilities

Debt ? ?

Total Liabilities ? ?

Shareholder's Equity
Retained Earnings ? ?
Common Stock ? ?

Total Shareholder's Equity ? ?

Total Liabilities + Shareholders' Equity ? ?

 (You can use the space below to
Notes about Assumptions: be sure you label them clearly so
 can use the space below to make necessary assumptions and calculations;
ure you label them clearly so that it's clear how they are related to the statement)
 CASH FLOW STATEMENT

Data for the calendar year period: 2022 2023

Cash Flow from Operations
Net Income 7,106,837 ?
Depreciation 377,665 ?
(Increase in Accounts Receivable) -150,743 ?
(Increase in Inventory) -94,065 ?
Increase in Accounts Payable -395,002 ?

Total Cash Flow from Operations 678376 ?

Cash Flow from Investing Activities

(Capital Expenditure) -642,876 ?

Total Cash Flow from Investing Activities -1,574,105 ?

Cash Flow from Financing Activities

Net Debt Issuance ? ?
Net Equity Issuance ? ?
(Dividends to Shareholders) ? ?

Total Cash Flow from Financing Activities 0 0

Cash Beginning of Period ? ?

Cash End of Period ? ?
Change in Cash ? ?
 (You can use the space below to
Notes about Assumptions: be sure you label them clearly so
 can use the space below to make necessary assumptions and calculations;
ure you label them clearly so that it's clear how they are related to the statement)
 DCF MODEL

(You can use this space to make necessary assumptions and calculations)

Data for the calendar year period: 2022 2023 2024

Free Cash Flow

Hints
Depreciation' in your DCF should be consistent with 'Depreciation' on Income Statement
Capital Expenditure' in your DCF should be consistent with 'Capital Expenditure' on Cash Flow Statement
The working capital adjustments in your DCF should be consistent with working capital changes in 'Cash Flow from Ope
- For working capital, include only 'Receivables', 'Inventory', and 'Payables' for simplicity (do not include Min Cash Balance)
 2025 2026 2027

Flow Statement
al changes in 'Cash Flow from Operating Activities' on Cash Flow Statement:
o not include Min Cash Balance)