Sales growth 10%

Current assets/Sales 26%

Current liabilities/Sales 25%
Net fixed assets/Sales 75%
Costs of goods sold/Sales 60%
Depreciation rate 4%
Interest rate on debt 4.71%

Tax rate 33%

Dividend payout ratio 40%

Year 0 1
Income statement
Sales 15,394 16,933.57 22,538.58
Costs of goods sold 9,261 10,187 13,559
Interest payments on debt 118 118 118

Depreciation 775 515.71 686.41

Profit before tax 5,240 6,113 8,175
Taxes 1,734 2,022.32 2,704.67
Profit after tax 3,506 4,090 5,471
Dividends 1,636.15 2,188.21
Retained earnings 2,454 3,282

Balance sheet
Cash and marketable securities 542 1,823 12,301
Current assets 3,949 4,344 -
Fixed assets
At cost 18,289 19,964 26,061
Depreciation (6,700) (7,216) (9,093)
Net fixed assets 11,589 12,748 16,968
Total assets 16,080 18,915 29,268

Current liabilities 3,809 4,190 5,576

Debt 2,516 2,516 2,516
Stock 554 554 554
Accumulated retained earnings 9,202 11,656 20,622
Total liabilities and equity 16,080 18,915 29,268
24,792.43 27,271.68 29,998.84
14,914 16,406 18,046
118 118 118

755.05 830.56 913.62

9,005 9,917 10,920
2,979.06 3,280.88 3,612.89
6,026 6,636 7,308
2,410.20 2,654.40 2,923.01
3,615 3,982 4,385

14,777 17,506 20,512

- - -

28,513 31,210 34,176

(9,848) (10,679) (11,592)
18,664 20,531 22,584
33,441 38,036 43,096

6,134 6,747 7,422

2,516 2,516 2,516
554 554 554
24,237 28,219 32,604
33,441 38,036 43,096
 A B C D E
1
2
3 Sales growth 10%
4 Current assets/Sales 26%
5 Current liabilities/Sales 25%
6 Net fixed assets/Sales 75%
7 Costs of goods sold/Sales 60%
8 Depreciation rate 4%
9 Interest rate on debt 4.71%
10 Interest paid on cash and marketable securities
11 Tax rate 33%
12 Dividend payout ratio 40%
13
14 Year 0 1 2 3
15 Income statement
16 Sales 15,394 16,933.57 18,626.92 20,489.61
17 Costs of goods sold 9,261 10,187 11,205 12,326
18 Interest payments on debt 118 118 118 118
19
20 Depreciation 775 515.71 567.28 624.01
21 Profit before tax 5,240 6,113 6,736 7,421
22 Taxes 1,734 2,022.32 2,228.47 2,455.23
23 Profit after tax 3,506 4,090 4,507 4,966
24 Dividends (1,403) 1,636.15 1,802.94 1,986.40
25 Retained earnings 2,104 2,454 2,704 2,980
26
27 Balance sheet
28 Cash and marketable securities 542 1,823 3,407 4,985
29 Current assets 3,949 4,344 - -
30 Fixed assets
31 At cost 18,289 19,964 21,806 23,832
32 Depreciation (6,700) (7,216) (7,783) (8,407)
33 Net fixed assets 11,589 12,748 14,023 15,425
34 Total assets 16,080 18,915 17,430 20,410
35
36 Current liabilities 3,809 4,190 - -
37 Debt 2,516 2,516 2,516 2,516
38 Stock 554 554 554 554
39 Accumulated retained earnings 9,202 11,656 14,360 17,340
40 Total liabilities and equity 16,080 18,915 17,430 20,410
41
42
43
44 CONSOLIDATED STATEMENT OF CASH FLOWS: RECONCILING THE CAS
45 Cash flow from operating activities
46 Profit after tax 4,090 4,507 4,966 5,471
47 Add back depreciation 515.71 567.28 624.01 686.41
 A B C D E
48 Adjust for changes in net working capital:
49 Subtract increase in current assets (395) 4,344 - -
50 Add back increase in current liabilities 381 (4,190) - -
51 Net cash from operating activities 4592.0458 5229.1688 5590.01833 6156.94571
52
53 Cash flow from investing activities
54 Aquisitions of fixed assets--capital expenditures (1,675) (1,842) (2,026) (2,229)
55
56
57 Net cash used in investing activities (1,675) (1,842) (2,026) (2,229)
58
59 Cash flow from financing activities
60 Net proceeds from borrowing activities - - - -
61 Net proceeds from stock issues, repurchases - - - -
62 Dividends paid (1,636.15) (1,802.94) (1,986.40) (2,188.21)
63 Net cash from financing activities (1,636) (1,803) (1,986) (2,188)
64
65 Net increase in cash and cash equivalents 1,281 1,584 1,577 1,740
66 Check: changes in cash and mkt. securities 1,282 1,584 1,577 1,740
 F G H
1
2
3
4
5
6
7
8
9
10
11
12
13
14 4 5
15
16 22,538.58 24,792.43 <-- =F15*(1+$B$2)
17 13,559 14,914 <-- =-G15*$B$6
18 118 118 <-- =-$B$8*(F36+G36)/2
19
20 686.41 755.05 <-- =-$B$7*(G30+F30)/2
21 8,175 9,005 <-- =SUM(G15:G19)
22 2,704.67 2,979.06 <-- =-G20*$B$10
23 5,471 6,026 <-- =G21+G20
24 2,188.21 2,410.20 <-- =-$B$11*G22
25 3,282 3,615 <-- =G23+G22
26
27
28 6,724 8,643 <-- =G39-G28-G32
29 - - <-- =G15*$B$3
30
31 26,061 28,513 <-- =G32-G31
32 (9,093) (9,848) <-- =F31+G19
33 16,968 18,664 <-- =G15*$B$5
34 23,692 27,307 <-- =G32+G28+G27
35
36 - - <-- =G15*$B$4
37 2,516 2,516 <-- =F36
38 554 554 <-- =F37
39 20,622 24,237 <-- =F38+G24
40 23,692 27,307 <-- =SUM(G35:G38)
41
42
43
: RECONCILING
44 THE CASH BALANCES
45
46 6,026 <-- =G22
47 755.05 <-- =-G19
 F G H
48
49 - <-- =-(G28-F28)
50 - <-- =G35-F35
51 6780.56583 <-- =SUM(G45:G49)
52
53
54 (2,452) <-- =-(G30-F30)
55
56
57 (2,452) <-- =SUM(G53:G55)
58
59
60 - <-- =G36-F36
61 - <-- =G37-F37
62 (2,410.20) <-- =G23
63 (2,410) <-- =SUM(G59:G61)
64
65 1,919 <-- =G62+G56+G50
66 1,919 <-- =G27-F27