SOLUCION - CASO ALMACÉN ENERGÉTICO LTDA. Adaptado de Ortiz, H.

(2013),
Finanzas Básicas para No Financieros: Bogotá. Cengage – Página 313

0. Entregar las instrucciones, el enunciado, los estados financieros del año 0, los
supuestos y las proyecciones en idioma inglés.
1. Enumerar y vincular al modelo de hoja de cálculo los supuestos de las proyecciones en
la Hoja "2. Supuestos".
2. Proyectar los estados Financieros para la opción de financiación 2 dada por los Bancos
acreedores.
3. Concluya sobre los indicadores actuales y proyectados de la empresa incluyendo:
a. Análisis de Estructura de Estados Financieros actual y Futura
b. Análisis de Indicadores de Rentabilidad, Liquidez, Endeudamiento/Apalancamiento y
Actividad.

INSTRUCTIONS

1. List and link the projection assumptions on Sheet "2. Assumptions" to the spreadsheet
model.
2. Project the Financial statements for financing option 2 given by the creditor banks.
3. Conclude on the current and projected indicators of the company including:
a. Analysis of Current and Future Financial Statement Structure
b. Analysis of Profitability, Liquidity, Debt/Leverage and Activity Indicators.

STATEMENT

DOCUMENT TITLE: CASE ALMACÉN ENERGÉTICO LTDA. Adapted from Ortiz, H.

(2013), Basic Finance for Non-Financials: Bogotá. Cengaje – Page 313
TYPE OF ACTIVITY: Case
TOPIC: Projection of Financial Statements
VERSION: 1
ADAPTED BY: William Zuluaga Muñoz

During the economic recession, many Colombian companies declared themselves in

crisis, including Almacén Energético Ltda., a medium-sized company dedicated to the
distribution of power plants, electrical transformers, coffee pulpers and spare parts for
them.
In the last year, the company experienced significant illiquidity that led it to lose a good
part of its market and resulted in the figures shown in the attached financial statements.
Knowing the results achieved and given the impossibility of meeting financial
commitments, the company manager asked the creditor banks to restructure the five-year
financial obligations, with interest of 13% per year in arrears.
The creditor banks, for their part, consider the possibility of restructuring, but with an
annual rate of 20% for the entire period.
In accordance with the above, financial projections must be prepared for the two
alternatives based on the information provided by the company and which appears below.
Sales
The market has begun to reactivate and presents good prospects for the future taking into
account the different government plans, especially regarding rural electrification. Thanks to
this situation, unit sales can be achieved for each year, with an annual increase in prices of
10% starting in projected year 2, as presented in the attached tables.
The sales period is 100 days and timely collection of the portfolio is expected (in each
period the non-provisioned portfolio is recovered). However, a provision will be maintained
for possible bad debts, equivalent to 5% of the balance of trade accounts receivable,
presented at the beginning of each period.
Sales cost
The unit sales cost for each of the products is presented in the annexes. Spare parts do
not have a unit cost, the figure is expressed in their total value. These costs increase 10%
each year, and it is also advisable to maintain a sufficient inventory of merchandise for 70
days of sales. Suppliers grant deadlines of 80 days.
Operating costs
The company has calculated the expenses for the first year, which increase 10% in each
subsequent period. They are presented among the annexes.
Income tax provision
A tax rate of 35% is applied to the profit for each year. Each year when declaring income,
an advance payment of 75% is made based on the previous year's tax. The balance will
be paid the year following its accrual. Accumulated losses are deducted from the following
year's profit before calculating the provision for taxes.
Amortization of financial obligations
The repayment of the restructured debt will be made in equal quarterly installments. If new
loans are contracted for working capital, they will have an interest of 21% calculated on the
annual average of the debt and the capital will be paid the following year.
The ending cash balance should be maintained at a minimum of $100,000 according to
company estimates.
If the cash flow is not sufficient to pay the principal loan plus interest, the partners will have
to make capital contributions for the shortfall, leaving the established minimum in cash.
Legal reserve
A legal reserve of 10% must be established on the profits of each year, if any.
Important data: Straight-line depreciation Deferred amortization (12.5% per year)
Additionally, there are miscellaneous expenses (Commissions, freight, taxes, etc.) which
are estimated at 2% of the sales of each period.
FINANCIAL STATEMENTS YEAR 0
ALMACÉN ENERGÉTICO LTDA.
Statement of income
January 1 to December 31 Year 0

Net sales 5.008.740

Sales cost 3.929.640
Gross profit 1.079.100

Selling and administrative expenses 1.303.340

Operational utility - 224.240

Financial expenses 452.000

Other expenses 200.000
Profit before taxes - 876.240

Net profit - 876.240

Interest Coverage - 0,5

ALMACÉN ENERGÉTICO LTDA.

Balance Sheet (Statement of Financial Position)
As of December 31 Year 0

ASSET PASSIVE AND HERITAGE

Cash 67.880 Short-term financial obligations 3.850.000
Accounts receivable 2.644.540 Suppliers 1.321.150
Bad debt provision - 100.000 Severance payable 94.720
Inventories 1.600.440 Social capital 300.000
Land 15.260 Legal reserve 120.000
Buildings 350.000 Accumulated losses - 128.520
Furniture and fixtures 120.680 Losses from the exercise - 876.240
Vehicles 71.520
Accumulated depreciation - 185.000
Deferred assets 44.780
Deferred amortization - 8.960
Other debtors 59.970
TOTAL ASSETS 4.681.110 TOTAL LIABILITIES AND EQUITY 4.681.110
ASSUMPTIONS
Nombre Valor Unidad Observaciones
i (Opc 1) 3% quarterly 13% natv, tv?
i (Opc 2) 5% quarterly
N 20 quarters
Payment (Opc 1) 5.295.974
Payment (Opc 2) 6.003.630
% Increase in prices 10% per year
Sales Turnover (Days) 200 días
Provision for bad debts 5%
% Increase in costs 10% per year
Rotación de inventarios 70 días
Rotación de proveedores 80 días
% Increase in expenses 10% per year
Tax rate 35% on EBT
Anticipated tax payment 75%
Cash policy 100 dias minimun per year
Legal reserve 10% on net income
Deffered assests amort 3%
%increase other expenses 2% on sales

PROJECTION OF FINANCIAL STATEMENTS FOR FINANCING OPTION

2 GIVEN BY THE CREDITOR BANKS.

ALMACÉN ENERGÉTICO LTDA.

Sales projection
Year 1
Projected prices
Product Units Unit
price Total value Unidades Precio unitario Valor total 1 2 3 4 5
Electric plants 190 25.000 4.750.000 25.000 27.500 30.250 33.275 36.603
Transformers 480 20.000 9.600.000 20.000 22.000 24.200 26.620 29.282
pulpers 720 500 360.000 500 550 605 666 732
Spare parts n.a. n.a. 100.000 100.000 110.000 121.000 133.100 146.410
TOTAL 14.810.000

ALMACÉN ENERGÉTICO LTDA.

Sales cost
Year 1
Projected costs
Product Unit cost 1 2 3 4 5
Electric plants 19.600 19.600 21.560 23.716 26.088 28.696
Transformers 15.300 15.300 16.830 18.513 20.364 22.401
pulpers 380 380 418 460 506 556
Spare parts (Total) have no unit cost 63.000 63.000 69.300 76.230 83.853 92.238

Shopping 12.021.721 12.766.816 14.043.498 15.447.847 16.992.632

 ALMACÉN ENERGÉTICO LTDA.
Projection of operational expenses
Year 1 Projected expenses
1 2 3 4 5
Salaries and benefits 480.100 480.100 528.110 580.921 639.013 702.914
Layoffs 48.000 48.000 52.800 58.080 63.888 70.277
Leases 16.410 16.410 18.051 19.856 21.842 24.026
Advertising 72.000 72.000 79.200 87.120 95.832 105.415
Public services 58.620 58.620 64.482 70.930 78.023 85.826
Staff service 86.800 86.800 95.480 105.028 115.531 127.084
Travel expenses 118.000 118.000 129.800 142.780 157.058 172.764
Vehicle maintenance 22.000 22.000 24.200 26.620 29.282 32.210
Stationery and stamps 48.380 48.380 53.218 58.540 64.394 70.833

1 2 3 4 5
Depreciation Historical cost Useful life Annual depreciation
Buildings 350.000 20 17.500 17.500 17.500 17.500 17.500
Furniture and fixtures 120.680 10 12.068 12.068 12.068 12.068 12.068
Vehicles 71.520 5 14.304 14.304 14.304 14.304 14.304
43.872 43.872 43.872 43.872 43.872

Loan
Initial balance 3.850.000
Opción 1
I= 13% nominal trimestre vencido
N= 5 años
i= 3,25% tv 14%
Cuota = 264.799
Cuota Saldo inicial Pago Capital Interes Saldo Final
1 3.850.000 264.799 139.674 125.125 3.710.326
2 3.710.326 264.799 144.213 120.586 3.566.113
3 3.566.113 264.799 148.900 115.899 3.417.213
4 3.417.213 264.799 153.739 111.059 3.263.474
5 3.263.474 264.799 158.736 106.063 3.104.738
6 3.104.738 264.799 163.895 100.904 2.940.843
7 2.940.843 264.799 169.221 95.577 2.771.622
8 2.771.622 264.799 174.721 90.078 2.596.901
9 2.596.901 264.799 180.399 84.399 2.416.502
10 2.416.502 264.799 186.262 78.536 2.230.239
11 2.230.239 264.799 192.316 72.483 2.037.923
12 2.037.923 264.799 198.566 66.233 1.839.357
13 1.839.357 264.799 205.020 59.779 1.634.338
14 1.634.338 264.799 211.683 53.116 1.422.655
15 1.422.655 264.799 218.562 46.236 1.204.092
16 1.204.092 264.799 225.666 39.133 978.427
17 978.427 264.799 233.000 31.799 745.427
18 745.427 264.799 240.572 24.226 504.855
19 504.855 264.799 248.391 16.408 256.464
20 256.464 264.799 256.464 8.335 - 0
Opción 2
I= 20% efectivo anual
N= 5 años
i= 4,66%
Cuota = 300.181
Cuota Saldo inicial Pago Capital Interes Saldo Final
1 3.850.000 300.181 120.636 179.545 3.729.364
2 3.729.364 300.181 126.262 173.919 3.603.102
3 3.603.102 300.181 132.150 168.031 3.470.951
4 3.470.951 300.181 138.313 161.868 3.332.638
5 3.332.638 300.181 144.763 155.418 3.187.875
6 3.187.875 300.181 151.515 148.667 3.036.360
7 3.036.360 300.181 158.580 141.601 2.877.780
8 2.877.780 300.181 165.976 134.206 2.711.804
9 2.711.804 300.181 173.716 126.465 2.538.088
10 2.538.088 300.181 181.817 118.364 2.356.270
11 2.356.270 300.181 190.297 109.885 2.165.974
12 2.165.974 300.181 199.171 101.010 1.966.803
13 1.966.803 300.181 208.459 91.722 1.758.343
14 1.758.343 300.181 218.181 82.001 1.540.163
15 1.540.163 300.181 228.356 71.826 1.311.807
16 1.311.807 300.181 239.005 61.176 1.072.802
17 1.072.802 300.181 250.151 50.030 822.650
18 822.650 300.181 261.817 38.364 560.833
19 560.833 300.181 274.027 26.155 286.806
20 286.806 300.181 286.806 13.375 - 0
INCOME STATEMENT PROJECTION
ALMACÉN ENERGÉTICO LTDA.
Projected Income Statement

AÑO 1 2 3 4 5

Income
Electric plants 4.750.000 5.225.000 5.747.500 6.322.250 6.954.475
Transformers 9.600.000 10.560.000 11.616.000 12.777.600 14.055.360
pulpers 360.000 396.000 435.600 479.160 527.076
Spare parts 100.000 110.000 121.000 133.100 146.410
Total revenue 14.810.000 16.291.000 17.920.100 19.712.110 21.683.321

Sales cost
Electric plants 3.724.000 4.096.400 4.506.040 4.956.644 5.452.308
Transformers 7.344.000 8.078.400 8.886.240 9.774.864 10.752.350
pulpers 273.600 300.960 331.056 364.162 400.578
Spare parts 63.000 69.300 76.230 83.853 92.238
Total costs 11.404.600 12.545.060 13.799.566 15.179.523 16.697.475

Gross profit 3.405.400 3.745.940 4.120.534 4.532.587 4.985.846

Operational expenses
Salaries and benefits 480.100 528.110 580.921 639.013 702.914
Layoffs 48.000 52.800 58.080 63.888 70.277
Leases 16.410 18.051 19.856 21.842 24.026
Advertising 72.000 79.200 87.120 95.832 105.415
Public services 58.620 64.482 70.930 78.023 85.826
Staff service 86.800 95.480 105.028 115.531 127.084
Travel expenses 118.000 129.800 142.780 157.058 172.764
Vehicle maintenance 22.000 24.200 26.620 29.282 32.210
Stationery and stamps 48.380 53.218 58.540 64.394 70.833
Miscellaneous expenses 296.200 325.820 358.402 394.242 433.666
Depreciation 43.872 43.872 43.872 43.872 43.872
Amortization 5.598 5.598 5.598 5.598 5.598
Bad debt provision 32.227 279.162 41.139 45.253 49.778
Total expenses 1.328.207 1.699.792 1.598.885 1.753.827 1.924.263

Operational utility 2.077.194 2.046.148 2.521.649 2.778.760 3.061.583

Financial expenses 683.364 579.892 455.725 306.725 127.924

Profit before taxes 1.393.829 1.466.256 2.065.924 2.472.036 2.933.659

Accumulated losses - 1.004.760 127.130 984.889 2.193.455 3.639.595
Adjusted profit before taxes 389.069 1.593.385 3.050.813 4.665.490 6.573.254

Taxes (35%) 136.174 513.190 723.073 865.212 1.026.781

Profit after taxes 1.257.655 953.066 1.342.850 1.606.823 1.906.878

Legal reserve (10%) 125.766 95.307 134.285 160.682 190.688

Result of the excersice 1.131.890 857.760 1.208.565 1.446.141 1.716.190

 ALMACÉN ENERGÉTICO LTDA.
Projected Balance Sheet

YEAR 1 2 3 4 5

ASSETS
Cash - 4.554.055 - 5.012.386 - 5.712.532 - 6.172.986 - 6.353.223
Accounts receivable 8.227.778 9.050.556 9.955.611 10.951.172 12.046.289
Bad debt provision - 132.227 - 411.389 - 452.528 - 497.781 - 547.559
Income Tax Advance - 102.131 384.892 542.305 648.909
Inventories 2.217.561 2.439.317 2.683.249 2.951.574 3.246.731
Land 15.260 15.260 15.260 15.260 15.260
Buildings 350.000 350.000 350.000 350.000 350.000
Furniture and fixtures 120.680 120.680 120.680 120.680 120.680
Vehicles 71.520 71.520 71.520 71.520 71.520
Accumulated depreciation
- 228.872 - 272.744 - 316.616 - 360.488 - 404.360
Deferred assets 44.780 44.780 44.780 44.780 44.780
Deferred amortization - 14.558 - 20.155 - 25.753 - 31.350 - 36.948
Other debtors 59.970 - - - -
TOTAL ASSETS 6.177.837 6.477.569 7.118.564 7.984.686 9.202.081

PASSIVE AND HERITAGE

Short-term financial obligations2.649.274 1.448.548 247.822 - 952.904 - 2.153.630
Suppliers 2.671.494 2.837.070 3.120.777 3.432.855 3.776.140
Income Tax Payable 136.174 513.190 723.073 865.212 1.026.781
Severance payable 48.000 52.800 58.080 63.888 70.277
Social capital 300.000 300.000 300.000 300.000 300.000
Legal reserve 245.766 341.072 475.357 636.039 826.727
Accumulated results - 1.004.760 127.130 984.889 2.193.455 3.639.595
Exercise results 1.131.890 857.760 1.208.565 1.446.141 1.716.190

TOTAL LIABILITIES AND EQUITY6.177.837 6.477.569 7.118.564 7.984.686 9.202.081

- - - - -
PROJECTED CASH FLOW

ALMACÉN ENERGÉTICO LTDA.

Projected Cash Flow Statement

YEAR 1 2 3 4 5

Income
Sales of the period 6.582.222 7.240.444 7.964.489 8.760.938 9.637.032
Accounts receivable from previous
2.644.540
periods 8.227.778 9.050.556 9.955.611 10.951.172
Repayment "Other debtors" 59.970
Total income 9.226.762 15.528.192 17.015.044 18.716.549 20.588.204

Expenses
Purchase of goods 9.350.228 9.929.746 10.922.720 12.014.992 13.216.492
Suppliers from previous years 1.321.150 2.671.494 2.837.070 3.120.777 3.432.855
Salaries and benefits 480.100 528.110 580.921 639.013 702.914
Layoffs 94.720 48.000 52.800 58.080 63.888
Leases 16.410 18.051 19.856 21.842 24.026
Advertising 72.000 79.200 87.120 95.832 105.415
Public services 58.620 64.482 70.930 78.023 85.826
Staff service 86.800 95.480 105.028 115.531 127.084
Travel expenses 118.000 129.800 142.780 157.058 172.764
Vehicle maintenance 22.000 24.200 26.620 29.282 32.210
Stationery and stamps 48.380 53.218 58.540 64.394 70.833
Miscellaneous expenses 296.200 325.820 358.402 394.242 433.666
Financial expenses 683.364 579.892 455.725 306.725 127.924
Amortization of financial obligations
1.200.726 1.200.726 1.200.726 1.200.726 1.200.726
Income tax payment 136.174 411.059 338.181 322.908
Income tax advance 102.131 384.892 542.305 648.909
Total expenses 13.848.698 15.986.523 17.715.190 19.177.003 20.768.441

Net cash flow - 4.621.935 - 458.331 - 700.145 - 460.454 - 180.237

Initial balance 67.880 - 4.554.055 - 5.012.386 - 5.712.532 - 6.172.986

Final balance - 4.554.055 - 5.012.386 - 5.712.532 - 6.172.986 - 6.353.223
CONCLUSIONS CURRENT AND PROJECTED INDICATORS

Rentabilidad 1 2 3 4 5
(ROA) 18% 13% 17% 18% 19%
(ROE) 168 53 41 32 26
Margen de beneficio bruto 23% 23% 23% 23% 23%
Margen de ganancias (EBIT) 9% 11% 9% 9% 9%

Liquidez
Razón Corriente 2,0 1,8 1,8 1,8 1,9
Capital de Trabajo Operativo 5.556.284 6.213.485 6.834.834 7.518.317 8.270.149
Capital de trabajo Contable 2.903.389 2.765.168 2.956.762 3.412.329 4.167.951

Endeudamiento/Apalancamiento
Endeudamiento global 89,1% 74,9% 58,3% 42,7% 29,6%
Endeudamiento financiero 18% 9% 1% -5% -10%
Cobertura de interés 1 3 7 15 51

Operaciones / Actividad
Rotación de activos 2 2 2 2 2
Días por Cobrar 200 200 200 200 200
Días de Cuentas por Pagar 84 81 81 81 81
Dias inventarios 71 71 71 71 71
Ciclo operativo 271 271 271 271 271
Ciclo de efectivo 187 190 190 190 190

According to its profitability indicators, the company will use an average of 17% of its
resources each year in the operation. In the first year of projection is when it
demonstrates the best result in its ROE indicator, reflecting that it can generate $168 for
every $100 it generates. is in its assets, a gross profit margin of 23% is projected on its
total sales and the Ebitda margin reflects that on average for every $100 there will be $9
left in the box.

Liquidity indicators demonstrate that the company has the ability to pay off its short-term
obligations, since it has sufficient resources in its current assets to pay off these debts and
continue operating without the need for financing.

The leverage indicator reflects that due to the investment made at the beginning of the
projection, the global debt indicator shows that the creditors own 89.1% of the company,
however, this percentage decreases in the following years, achieving At the end of the
projection a debt of 29.6% and on average it will have a 19% financial debt.
As the projection made to the company ALMACÉN ENERGÉTICO LTDA is made taking into
account an increase of the same percentages for each year, for the operating accounts,
therefore, the activity indicators show the same behavior for each of the 5 years . ,
reflecting that the company would be efficient in the use of its resources since with its
sales it would generate 2 times what it has in assets, every 200 days on average it receives
money from its accounts receivable and every 71 days it rotates its inventory, which
generates an operating cycle of 271 days, and as accounts payable to suppliers is on
average 81 days, its cash conversion cycle will be 190 days, which will generate a financing
need for that time to continue operating.