Funding Gap and Operating Line Calculator Strictly Confidential

Table of Contents
Funding Gap

Notes
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Funding Gap and Operating Line
Funding Gap and Operating Line Calculator Income Statement
Revenues 1,500,000 Days in Period Revenue
Cost of Goods Sold (COGS) 925,000 365 COGS
Gross Profit
Receivables 150,000 Selling, General, Admin
Inventories 75,000 Earnings Before Tax
Payables 100,000 Taxes
Net Income
Receivable days
Inventory days Balance Sheet
Payable days ASSETS
Cash
Receivable days + inventory days Accounts Receivable
Less: payable days Inventory
Funding gap in days PP&E
ASSETS
Financing (operating line) required LIABILITIES
Accounts Payable
Balance up to Financing Long Term Debt
Receivables 50% SHAREHOLDERS EQUITY
Inventories 50% Share Capital
Operating line allowed Retained Earnings
LIABILITIES & SHAREHOL
Income Statement
1,500,000
925,000
Gross Profit 575,000
Selling, General, Admin 400,000
Earnings Before Tax 175,000
52,500
122,500

Balance Sheet

250,000
Accounts Receivable 150,000
75,000
2,525,000
3,000,000
LIABILITIES
Accounts Payable 100,000
Long Term Debt 1,250,000
SHAREHOLDERS EQUITY
Share Capital 1,000,000
Retained Earnings 650,000
LIABILITIES & SHAREHOLDERS EQUITY 3,000,000