Mátyásföldi Auto Service is a licensed car service business, owned by a Hungarian individual

growing. There are no debts outstanding at present. The firm owns its shop outright includin
sale, and the business is looking to expand its operations and shop to that lot. There have ne
payments.

Fill in the missing information in the yellow fields.

Balance Sheet (eHUF)

Assets Last year This year
Fixed Assets 122,000 173,000
Intangibles 2,000 2,000
Software 2,000 2,000
Property Plant and Equipment 120,000 171,000
Buildings 80,000 120,000
Machines 35,000 45,000
Other durable assets 5,000 6,000
Long term deposits 0 0
Current Asssets 210,000
Inventory 40,000 70,000
Accounts Receivable 120,000 170,000
Cash 50,000 -240,000
Accrued income and prepaid expenses 0 0
Total Assets 332,000

Last year This year

Net Working Capital

Income Statement
Last year This year
Revenues 1,240,000 1,360,000
Cost of Materials 850,000 930,000
Cost of Services 220,000 250,000
Other services 0 0
Material Expenditures 1,070,000 1,180,000
Wages 94,000 95,000
Benefits 25,000 25,000
Personnel Expenditures 119,000 120,000
11,000 12,000
Other Expenses 0 0
Earnings from Operation 40,000
Finance Income 0 0
Finance Expense 0 0
Earnings from Finance 0 0
Earnings before tax 40,000 0
Income tax (8%) 3,600 0
Earnings after Tax 36,400 0
 ungarian individual. There are 30 employees, and the firm is steadily
op outright including the land it is located on. The neighboring lot is for
at lot. There have never been, and there is no plan for any dividend

Liabilities Last Year This Year

Equity 282,000 3,000
Par value 3,000 3,000
Retained Earnings 242,600
Addition to Retained Earnings 36,400 0
Debt 50,000 120,200
Long Term Debt 0 0
Short Term Liabilities 50,000 120,200
40,000 105,200
Other Short Term Liabilities 10,000 15,000
Accruals and deferrals 0 0
Equity + Liabilities 332,000
 Mátyásföldi Auto Service is a licensed car service business, owned by a Hungarian individual. There are 30 employees, and the
growing. There are no debts outstanding at present. The firm owns its shop outright including the land it is located on. The neig
sale, and the business is looking to expand its operations and shop to that lot. There have never been, and there is no plan for
payments.

Perform the indirect cashflow calculation

Balance Sheet (eHUF)

Assets Last year This year
Fixed Assets 122,000 173,000
Intangibles 2,000 2,000
Software 2,000 2,000
Property Plant and Equipment 120,000 171,000
Buildings 80,000 120,000
Machines 35,000 45,000
Other durable assets 5,000 6,000
Long term deposits 0 0
Current Asssets 210,000 272,880
Inventory 40,000 70,000
Accounts Receivable 120,000 170,000
Cash 50,000 32,880
Accrued income and prepaid expenses 0 0
Total Assets 332,000 445,880

Last year This year

Net Working Capital 160,000 152,680

Income Statement
Last year This year
Revenues 1,240,000 1,360,000
Cost of Materials 850,000 930,000
Cost of Services 220,000 250,000
Other services 0 0
Material Expenditures 1,070,000 1,180,000
Wages 94,000 95,000
Benefits 25,000 25,000
Personnel Expenditures 119,000 120,000
Dep/am 11,000 12,000
Other Expenses 0 0
Earnings from Operation 40,000 48,000
Finance Income 0 0
Finance Expense 0 0
Earnings from Finance 0 0
Earnings before tax 40,000 48,000
Income tax (9%) 3,600 4,320
Earnings after Tax 36,400 43,680
y a Hungarian individual. There are 30 employees, and the firm is steadily
ts shop outright including the land it is located on. The neighboring lot is for
o that lot. There have never been, and there is no plan for any dividend

Liabilities Last year This year

Equity 282,000 325,680
Par value 3,000 3,000
Retained Earnings 242,600 279,000
Addition to Retained Earning 36,400 43,680
Debt 50,000 120,200
Long Term Debt 0 0
Short Term Liabilities 50,000 120,200
Acc pay 40,000 105,200
Other Short Term Liabilities 10,000 15,000
Accruals and deferrals 0 0
Liabilities and Equity 332,000 445,880

Calculating NOPLAT This Year

EBITDA 60,000
Depreciation and Amortization 12,000
Earnings from Operation (EBIT) 48,000
Tax -4,320
NOPLAT 43,680
he firm is steadily
neighboring lot is for
or any dividend

INDIRECT CF This Year

Noplat 43,680
Depreciation and Amortization 12,000
Change in Payables 65,200
Change in other short term liabilities 5,000
Change in Receivables -50,000
Change in Inventory -30,000
Change in Net Working Capital -9,800
Operating CF 45,880
Change in Intangibles 0
Change in Prop Plant & Equip -51,000
Depreciation and Amortization -12,000
Change in Long Term Deposits 0
CAPEX -63,000
Investment CF -63,000
FCFF -17,120
Change in Long Term Debt 0
Finace Income-Expense 0
Financing CF 0
Total CF -17,120

Check: Change in Cash =

 The company plans to buy the adjacent lot for 130 000 eHUF, and buy additional equipmen
machinery is 5 000/year each. The firm expects to increase its capacity to 30, 35, 40 cars ov
income is expected to remain constant per car.

3) Determine default vallues for some control variables (the ones in orange). Use 250 work
days.
4) With the baseline (and ad-hoc modified) control variables calculate the projected casflo
5) estimate the company's cost of capital from publicly available data
6) perform sensitivity analyses:
- what happens to cashflows and earnings if they can service one additional car per day?
- what happens to cashflows and earings if the raw material costs take up and additional p
- create 3 scenarios (optimistic, realistic, pessimistic) and perform a break-even analysis fo
- How would you summarize your results to an outside potential investor, if you think ther
place

Control Variables Data in eHUF

Income Last year This year 1
cars serviced per day 25 27
net income per car 200 200
Net Sales 1,240,000 1,360,000
Expenses
Raw material costs/Net sales 69% 68%
Services expenses/Net Sales 18% 18%
Personnel Expenditures 119,000 120,000
Investment
Purchase and maintenance of lot - -
purchanse and maintenance of machinery - -
NWC
Inventory days 17.2 27.5
Receivable days 35.3 45.6
Payable days 13.6 32.5

Plan Balance Sheet

Assets Last year This year 1
Fixed Assets 122,000 173,000 160,400
Intangibles 2,000 2,000 2,000
Software 2,000 2,000 2,000
Property Plant and Equipment 120,000 171,000 158,400
Buildings 80,000 120,000 117,600
Machines 35,000 45,000 36,000
Other durable assets 5,000 6,000 4,800
Long term deposits 0 0 0
Current Asssets 210,000 272,880 0
Inventory 40,000 70,000 0
Accounts Receivable 120,000 170,000 0
Cash 50,000 32,880
Accrued income and prepaid expenses 0 0 0
Total Assets 332,000 445,880 160,400

Liabilities Előző év Tárgy év 1

Equity 282,000 325,680 314,214
Par value 3,000 3,000 3,000
Retained Earnings 242,600 279,000 322,680
Addition to Retained Earnings 36,400 43,680 -11,466
Debt 50,000 120,200 15,000
Long Term Debt 0 0 0
Short Term Liabilities 50,000 120,200 15,000
Accounts Payable 40,000 105,200 0
 Other Short Term Liabilities 10,000 15,000 15,000
Short Term Debt 0
Accruals and deferrals 0 0 0
Liabilities and Equity 332,000 445,880 329,214

Plan Income Statement

Last year This year 1
Revenues 1,240,000 1,360,000 0
Cost of Materials 850,000 930,000 0
Cost of Services 220,000 250,000 0
Other services 0 0 0
Material Expenditures 1,070,000 1,180,000 0
Wages 94,000 95,000 0
Benefits 25,000 25,000 0
Personnel Expenditures 119,000 120,000 0
Amortization and Depreciation 11,000 12,000 12,600
Other Expenses 0 0 0
Earnings from Operation 40,000 48,000 -12,600
Finance Income 0 0 0
Finance Expense 0 0 0
Earnings from Finance 0 0 0
Earnings before tax 40,000 48,000 -12,600
Income tax (8%) 3,600 4,320 -1,134
Earnings after Tax 36,400 43,680 -11,466

INDIRECT CF This Year 1

NOPLAT 43,680 -11,466
Depreciation and Amortization 12,000 12,600
Change in Payables 65,200 -105,200
Change in other short term liabilities 5,000 0
Change in Receivables -50,000 170,000
Change in Inventory -30,000 70,000
Change in Net Working Capital -9,800 134,800
Operating CF 45,880 135,934
Change in Intangibles 0 0
Change in Prop Plant & Equip -51,000 12,600
Depreciation and Amortization -12,000 -12,600
Change in Long Term Deposits 0 0
CAPEX -63,000 0
Investment CF -63,000 0
FCFF -17,120 135,934
Change in Long Term Debt 0 0
Change in Short Term Debt 0
Finance Income-Expense 0 0
Financing CF 0 0
Total CF -17,120 135,934
Check: change in cash -17,120 -32,880

0.0% Discount Rate 1

Discount Factor
PV(CF)
∑PV(CF)

Discounted Break-Even Period 1

Cum PV(CF)
d buy additional equipment for 15 000. Additional maintenance on the building and
pacity to 30, 35, 40 cars over the next 3 years, and keeping it at 40/day after. The net

s in orange). Use 250 workdays for income-related measures, 365 days for turnover

culate the projected casflows in the future

data

ne additional car per day?

sts take up and additional percentage point if sales?
rm a break-even analysis for the investment project
al investor, if you think there is only a 90% chance for the investment project to take

Other Data
2 3 4 5 beta 1.2
risk-free rate 3%
market risk premium 8%
expected return
tax rate 9%

2 3 4 5
149,888 141,055 133,574 127,182
2,000 2,000 2,000 2,000
2,000 2,000 2,000 2,000
147,888 139,055 131,574 125,182
115,248 112,943 110,684 108,470
28,800 23,040 18,432 14,746
3,840 3,072 2,458 1,966
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0

0 0 0 0
149,888 141,055 133,574 127,182

2 3 4 5
304,648 296,610 289,802 283,986
3,000 3,000 3,000 3,000
311,214 301,648 293,610 286,802
-9,566 -8,038 -6,808 -5,816
15,000 15,000 15,000 15,000
0 0 0 0
15,000 15,000 15,000 15,000
0 0 0 0
 15,000 15,000 15,000 15,000
0 0 0 0
0 0 0 0
319,648 311,610 304,802 298,986

2 3 4 5
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
10,512 8,833 7,481 6,392
0 0 0 0
-10,512 -8,833 -7,481 -6,392
0 0 0 0
0 0 0 0
0 0 0 0
-10,512 -8,833 -7,481 -6,392
-946 -795 -673 -575
-9,566 -8,038 -6,808 -5,816

2 3 4 5
-9,566 -8,038 -6,808 -5,816
10,512 8,833 7,481 6,392
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
946 795 673 575
0 0 0 0
10,512 8,833 7,481 6,392
-10,512 -8,833 -7,481 -6,392
0 0 0 0
0 0 0 0
0 0 0 0
946 795 673 575
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
946 795 673 575
0 0 0 0

2 3 4 5

2 3 4 5
 You are told that the firm will buy the neighboring lot, and the c-suite assumes a realistic scenario fo
Does the firm have sufficient capital?
You know that the firn's bank is offering both short and long term financing. Long term financing is
compounded rate for any tenor. Bank deposits yield no interest.
Make recommendations for financing plans, debt or equity. How will a particular financing play imp

Control Variables Adatok eFt-ban

Income Előző év Tárgy év 1
cars serviced per day 25 27 30
net income per car 200 200 200
Net Sales 1,240,000 1,360,000 1,500,000
Expenses
Raw material costs/Net sales 69% 68% 68%
Services expenses/Net Sales 18% 18% 18%
Personnel Expenditures 119,000 120,000 130,000
Investment
Purchase and maintenance of lot - - 130,000
purchanse and maintenance of machinery - - 15,000
NWC
Inventory days 17.2 27.5 27.5
Receivable days 35.3 45.6 45.6
Payable days 13.6 32.5 32.5

Plan Balance Sheet

Assets Előző év Tárgy év 1
Fixed Assets 122,000 173,000 299,800
Intangibles 2,000 2,000 2,000
Software 2,000 2,000 2,000
Property Plant and Equipment 120,000 171,000 297,800
Buildings 80,000 120,000 245,000
Machines 35,000 45,000 48,000
Other durable assets 5,000 6,000 4,800
Long term deposits 0 0 0
Current Asssets 210,000 272,880 202,709
Inventory 40,000 70,000 77,206
Accounts Receivable 120,000 170,000 187,500
Cash 50,000 32,880 -61,997
Accrued income and prepaid expenses 0 0 0
Total Assets 332,000 445,880 502,509

Liabilities Előző év Tárgy év 1

Equity 282,000 325,680 371,480
Par value 3,000 3,000 3,000
Retained Earnings 242,600 279,000 322,680
Addition to Retained Earnings 36,400 43,680 45,800
Debt 50,000 120,200 131,029
Long Term Debt 0 0 0
Short Term Liabilities 50,000 120,200 131,029
Accounts Payable 40,000 105,200 116,029
Other Short Term Liabilities 10,000 15,000 15,000
Short Term Debt 0
Accruals and deferrals 0 0 0
Liabilities and Equity 332,000 445,880 502,509

Plan Income Statement

 Előző év Tárgy év 1
Revenues 1,240,000 1,360,000 1,500,000
Cost of Materials 850,000 930,000 1,025,735
Cost of Services 220,000 250,000 275,735
Other services 0 0 0
Material Expenditures 1,070,000 1,180,000 1,301,471
Wages 94,000 95,000 102,917
Benefits 25,000 25,000 27,083
Personnel Expenditures 119,000 120,000 130,000
Amortization and Depreciation 11,000 12,000 18,200
Other Expenses 0 0 0
Earnings from Operation 40,000 48,000 50,329
Finance Income 0 0 0
Finance Expense 0 0 0
Earnings from Finance 0 0 0
Earnings before tax 40,000 48,000 50,329
Income tax (8%) 3,600 4,320 4,530
Earnings after Tax 36,400 43,680 45,800

INDIRECT CF Tárgyév 1
NOPLAT 43,680 45,800
Depreciation and Amortization 12,000 18,200
Change in Payables 65,200 10,829
Change in other short term liabilities 5,000 0
Change in Receivables -50,000 -17,500
Change in Inventory -30,000 -7,206
Change in Net Working Capital -9,800 -13,876
Operating CF 45,880 50,123
Change in Intangibles 0 0
Change in Prop Plant & Equip -51,000 -126,800
Depreciation and Amortization -12,000 -18,200
Change in Long Term Deposits 0 0
CAPEX -63,000 -145,000
Investment CF -63,000 -145,000
FCFF -17,120 -94,877
Change in Long Term Debt 0 0
Change in Short Term Debt 0
Finance Income-Expense 0 0
Financing CF 0 0
Total CF -17,120 -94,877
Check: change in cash -17,120 -94,877

Financing Plan
Long Term
Tenor (year)
Interest Rate
Repayment Schedule linear
Principal Amount (eHUF)
1
Principal outstanding at beginning of year
Interest paid
Principal paid

Short Term
Interest Rate
1
Principal outstanding at beginning of year
Interest paid 0
Principal paid
assumes a realistic scenario for the future.

ncing. Long term financing is available up to 100 mHUF (=100 000 eHUF), for 5 years, at 6% yearly

particular financing play impact income and cashflow. (only deal with the yellow fields)

EGYÉB ADATOK
2 3 4 5 béta 1.2
35 40 40 40 Kockázatmentes kamatláb 3%
200 200 200 200 Piaci kockázati prémium 8%
1,750,000 2,000,000 2,000,000 2,000,000 Várható hozam 12.6%
Adókulcs 9%
68% 68% 68% 68%
18% 18% 18% 18%
140,000 150,000 150,000 150,000

5,000 5,000 5,000 5,000

5,000 5,000 5,000 5,000

27.5 27.5 27.5 27

45.6 45.6 46 46
32.5 32.5 33 33

2 3 4 5
293,240 287,992 283,794 280,435
2,000 2,000 2,000 2,000
2,000 2,000 2,000 2,000
291,240 285,992 281,794 278,435
245,000 245,000 245,000 245,000
42,400 37,920 34,336 31,469
3,840 3,072 2,458 1,966
0 0 0 0
296,910 412,003 507,663 603,248
90,074 102,941 102,941 102,941
218,750 250,000 250,000 250,000
-11,914 59,062 154,722 250,306
0 0 0 0
590,150 699,995 791,457 883,683

2 3 4 5
439,782 530,289 621,751 713,977
3,000 3,000 3,000 3,000
368,480 436,782 527,289 618,751
68,302 90,507 91,462 92,226
150,368 169,706 169,706 169,706
0 0 0 0
150,368 169,706 169,706 169,706
135,368 154,706 154,706 154,706
15,000 15,000 15,000 15,000
0 0 0 0
0 0 0 0
590,150 699,995 791,457 883,683
 2 3 4 5
1,750,000 2,000,000 2,000,000 2,000,000
1,196,691 1,367,647 1,367,647 1,367,647
321,691 367,647 367,647 367,647
0 0 0 0
1,518,382 1,735,294 1,735,294 1,735,294
110,833 118,750 118,750 118,750
29,167 31,250 31,250 31,250
140,000 150,000 150,000 150,000
16,560 15,248 14,198 13,359
0 0 0 0
75,058 99,458 100,507 101,347
0 0 0 0
0 0 0 0
0 0 0 0
75,058 99,458 100,507 101,347
6,755 8,951 9,046 9,121
68,302 90,507 91,462 92,226

2 3 4 5
68,302 90,507 91,462 92,226
16,560 15,248 14,198 13,359
19,338 19,338 0 0
0 0 0 0
-31,250 -31,250 0 0
-12,868 -12,868 0 0
-24,779 -24,779 0 0
60,083 80,975 105,660 105,585
0 0 0 0
6,560 5,248 4,198 3,359
-16,560 -15,248 -14,198 -13,359
0 0 0 0
-10,000 -10,000 -10,000 -10,000
-10,000 -10,000 -10,000 -10,000
50,083 70,975 95,660 95,585
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
50,083 70,975 95,660 95,585
50,083 70,975 95,660 95,585

2 3 4 5

2 3 4 5

0 0 0 0
0 0 0 0