Income Statement Balance Sheet

2018 2019 (1st Pass) 2019 (2nd Pass)

Sales 2,000 2,500 2,500 Cash
COGS 1,200 1,500 1,500 Receivables
SG&A Expenses 700 875 875 Inventory
EBIT (Operating profit) 100 125 125 Total Current Assets
Interest Exp 16 16 30.34 Fixed Assets
EBT 84 109 95 Total Assets
Taxes 34 44 37.86
Net Income 50 65 57 Additional Funds Needed (AFN) gap will be fulfilled b
Dividend 15.12 19.62 17.04 The combination of funds will be 50/50 @ rate of 8%
Add: To RE 35.28 45.78 39.76
6.02
Assumptions:
Sales will increase by 25% in 2019. All cost including variable and fixed will increase in line with increase in sales
Tax percentage will remain same as per last year. Current tax rate is 40%.
There will be no change in interest expense in 1st pass of the 2019 income statement
Dividend pay out ratio will be same as per last year. Any change in dividend pay out ratio will be announced by the manage
Plant is operating at 100% capacity
Taxes/EBT Tax rate
34
84 % Sales Method
40% lets say if sales increases by 10%, you operating expenses will also inc
Cost of sales
Distribution
admin expenses
Dividend Payout Ratio 30%
Dividend/Net Income operating current and fixed assets will also increase by same %
Cash
inventory
receivables

Equipment/Plants (if the plant is operating @ 100% capacity, then it wi

operating current liabilty

accounts payable
 Balance Sheet
2018 2019 (1st Pass) 2019 (2nd Pass) 2018
20 25 25 Acs/Payable 100.00
240 300 300 Notes Payable 100.00
240 300 300 Total Current Liab 200.00
500 625 625 LT Debt 100.00
500 625 625 Total Liab 300.00
1000 1,250.00 1,250.00 Common Stock 500.00
Retained Earnings 200.00
ded (AFN) gap will be fulfilled by way of LTD & Notes Payable Total Liab+Equity 1,000.00
unds will be 50/50 @ rate of 8%
Additional Funds Needed
Notes Payable
LTD
with increase in sales Interest Rate/cost
Interest Exp

l be announced by the management at later stage. 2018

Total Borrwoing 200.00
sales 2,000

operating expenses will also increase by same %

so increase by same %

ng @ 100% capacity, then it will increase in line with increase in sales)

2019 (1st Pass) 2019 (2nd Pass)
125.00 125.00
100.00 189.61
225.00 314.61
100.00 189.61
325.00 504.22
500.00 500.00
245.78 239.76
1,070.78 1,243.98
6.02
179.22
89.61
89.61
8%
14.34
Income Statement Balance Sheet
2018 2019 (1st Pass) 2019 (2nd Pass) 2018
Sales 2,000 2,400 2,400 Cash 20
COGS 1,200 1,440 1,440 Receivables 240
SG&A Expenses 700 840 840 Inventory 240
EBIT (Operating profit) 100 120 120 Total Current Assets 500
Interest Exp 16 16 18.91 Fixed Assets 500
EBT 84 104 101 Total Assets 1000
Taxes 34 42 40.44
Net Income 50 62 61 Additional Funds Needed (AFN) gap will be fulfilled b
Dividend 15.12 18.72 18.20 The combination of funds will be 50/50 @ rate of 8%
Add: To RE 35.28 43.68 42.46
1.22
Assumptions:
Sales will increase by 20% in 2019. All cost including variable and fixed will increase in line with increase in sales
Tax percentage will remain same as per last year. Current tax rate is 40%.
There will be no change in interest expense in 1st pass of the 2019 income statement
Dividend pay out ratio will be same as per last year. Any change in dividend pay out ratio will be announced by the managemen
Plant is not operating at 100% capacity
Taxes/EBT Tax rate
34
84 % Sales Method
40% lets say if sales increases by 10%, you operating expenses will also incre
Cost of sales
Distribution
admin expenses
Dividend Payout Ratio 30%
Dividend/Net Income operating current and fixed assets will also increase by same %
Cash
inventory
receivables

Equipment/Plants

operating current liabilty

accounts payable
 Balance Sheet
2019 (1st Pass) 2019 (2nd Pass) 2018 2019 (1st Pass)
24 24 Acs/Payable 100.00 120.00
288 288 Notes Payable 100.00 100.00
288 288 Total Current Liab 200.00 220.00
600 600 LT Debt 100.00 100.00
500 500 Total Liab 300.00 320.00
1,100.00 1,100.00 Common Stock 500.00 500.00
Retained Earnings 200.00 243.68
FN) gap will be fulfilled by way of LTD & Notes Payable Total Liab+Equity 1,000.00 1,063.68
ll be 50/50 @ rate of 8%
Additional Funds Needed 36.32
Notes Payable 18.16
LTD 18.16
Interest Rate/cost 8%
Interest Exp 2.91

unced by the management at later stage. 2018

Total Borrwoing 200.00
sales 2,000

expenses will also increase by same %

ase by same %
2019 (2nd Pass)
120.00
118.16
238.16
118.16
356.32
500.00
242.46
1,098.78
1.22