Income Statement

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

40,000

75,000

100,000

200,000

300,000

Cost of sales

18,000

33,750

45,000

90,000

135,000

Gross margin

Assumptions

22,000

41,250

55,000

110,000

165,000

Research and development

55.0%

5,000

6,000

8,000

17,000

25,000

Sales and marketing

6,000

7,000

8,000

16,000

24,000

General and administrative

6,000

6,000

9,000

17,000

26,000

17,000

19,000

25,000

50,000

75,000

5,000

14,000

11,600

9,680

11,744

8,250

18,400

50,320

78,256

Operating expenses
Depreciation

20.0%

Operating income
Finance costs

4.0%

Income before tax

Income tax expense

990

1,250

690

230

7,260

17,150

49,630

78,026

20.0%

Net income

Balance sheet

500
-500

Assumptions

Opening

1,352

3,430

9,926

15,605

-500

5,908

13,720

39,704

62,421

Year 1

Year 2

Year 3

Year 4

Year 5

Assets
Cash

5,000

966

396

4,580

29,521

61,126

Accounts receivable

45

6,000

4,932

9,247

12,329

24,658

36,986

Inventory

90

5,000

4,438

8,322

11,096

22,192

33,288

Current assets

16,000

10,336

17,964

28,004

76,371

131,400

Long-term assets

20,000

20,000

56,000

46,400

38,720

46,976

36,000

30,336

73,964

74,404

115,091

178,376

22,192

Total assets

Liabilities
Accounts payable

60

3,500

2,959

5,548

7,397

14,795

Other liabilities

60

2,500

2,877

3,508

4,879

9,964

14,932

6,000

5,836

9,056

12,276

24,759

37,124

Current liabilities
Long-term debt

15,000

10,000

39,500

23,000

11,500

21,000

15,836

48,556

35,276

36,259

37,124

10,000

10,000

15,000

15,000

15,000

15,000

5,000

4,500

10,408

24,128

63,832

126,253

Total equity

15,000

14,500

25,408

39,128

78,832

141,253

Total liabilities and equity

36,000

30,336

73,964

74,404

115,091

178,376

Total liabilities

Equity
Capital
Retained earnings

2015 www.planprojections.com

266966876.xlsx

Cash Flow Statement

Assumptions

Year 1

Net income

Year 2

Year 3

Year 4

Year 5

-500

5,908

13,720

39,704

62,421

5,000

14,000

11,600

9,680

11,744

1,068

-4,315

-3,082

-12,329

-12,329

562

-3,884

-2,774

-11,096

-11,096

-541

2,589

1,849

7,397

7,397

377

632

1,371

5,085

4,968

5,966

14,930

22,684

38,442

63,105

Add back depreciation

Changes in working capital
Accounts receivable
Inventory
Accounts payable
Other liabilities
Cash flows from operating activities
Amount paid for long-term assets
Cash flows from investing activities
Proceeds from long-term debt

-5,000

-50,000

-2,000

-2,000

-20,000

-5,000

-50,000

-2,000

-2,000

-20,000

46,000

5,000

-5,000

-16,500

-16,500

-11,500

-11,500

-5,000

34,500

-16,500

-11,500

-11,500

-4,034

-570

4,184

24,942

31,605

5,000

966

396

4,580

29,521

966

396

4,580

29,521

61,126

Proceeds from issue of share capital

Repayment of long-term debt
Cash flow from financing activities
Cash flow

Opening cash balance

Closing cash balance

Graphs

Revenue

Net income

350,000

70,000

300,000

60,000

250,000

50,000

200,000

40,000

150,000

30,000

100,000

20,000

50,000

10,000
0

0
1

-10,000

Free cash flow (cumulative)

Cash balance

80000

70,000
60,000

60000

50,000

40000

40,000

20000

30,000
20,000

0
-20000

10,000
0

-40000

2015 www.planprojections.com

266966876.xlsx

Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

Gross margin percentage

55.0%

55.0%

55.0%

55.0%

55.0%

Operating expenses ratio

Profitability ratios
42.5%

25.3%

25.0%

25.0%

25.0%

Return on sales

0.0%

11.0%

18.4%

25.2%

26.1%

Net profit ratio

-1.3%

7.9%

13.7%

19.9%

20.8%

0.0%

12.7%

29.6%

55.7%

55.4%

Asset turnover ratio

1.32

1.01

1.34

1.74

1.68

Fixed asset turnover ratio

2.00

1.34

2.16

5.17

6.39

Working capital turnover ratio

8.89

8.42

6.36

3.88

3.18

Current ratio

1.77

1.98

2.28

3.08

3.54

Quick ratio

1.01

1.06

1.38

2.19

2.64

Gearing ratio

0.41

0.61

0.37

0.13

0.00

Debt equity ratio

0.69

1.55

0.59

0.15

0.00

Interest coverage ratio

0.00

8.33

14.72

72.93

340.24

Accounts receivable days

45

45

45

45

45

Accounts payable days

60

60

60

60

60

Other liabilities days

60

60

60

60

60

Inventory days

90

90

90

90

90

-3%

23%

35%

50%

44%

40,909

61,800

68,818

109,764

158,135

Monthly cash (burn) rate

80

-2,923

1,724

3,037

3,592

Zero date

12

10

17

135

135

135

135

135

75

75

75

75

75

Return on capital employed

Efficiency ratios

Liquidity ratios

Leverage ratios

Activity ratios

Investor ratios
Return on equity

Breakeven point
Breakeven revenue

Cash flow

Operating cycle
Cash conversion cycle

2015 www.planprojections.com

266966876.xlsx

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