EXCEL BASEMENT Cover 07/16/2024 04:58:27

Excel Basement Five year projection

Color key Structure

Inputs
1.1 = Hard number assumption, can be changed. Assumptions Drivers, percentages, and constants
1.1 = Historical or given number. Do not change. Calcs Audit trails and supporting calculations
1.1 = Formula. Do not change. Debt Debt; interest income & expense calcs
Outputs
IncState Income statement, shareholder info
Circular references BalSheet Balance sheet
intentional circular references CashFlow Cash flow statement; cash analysis
Analysis
Summary Key drivers and accounts; ratios

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EXCEL BASEMENT Assumptions 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Assumptions Year Year 1 Year 2 Year 3 Year 4 Year 5
Income statement
Sales growth 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
COGS as % of sales 68.0% 68.0% 68.0% 68.0% 68.0% 68.0%
SG&A as % of sales 23.0% 23.0% 23.0% 23.0% 23.0% 23.0%
Tax rate % of Income before taxes 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
Shareholder info
Dividend payout rate % of net income 20.1% 20.0% 20.0% 20.0% 20.0% 20.0%
Wgted avg common shares outstanding 12.2 12.2 12.2 12.2 12.2 12.2
PP&E
Annual depr. as % of previous PPE 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Capital expenditures % of sales 0.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Working capital
Accounts receivable as % of sales 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Inventories % of COGS 7.7% 7.7% 7.7% 7.7% 7.7% 7.7%
Accounts payable % of COGS 8.8% 8.8% 8.8% 8.8% 8.8% 8.8%
Debt & interest
Interest % on cash 5.5% 5.5% 5.5% 5.5% 5.5%
Interest % on Revolver 9.0% 9.0% 9.0% 9.0% 9.0%
Issuance, Bank loan 70.0 5.0 0.0 0.0 0.0 0.0
Repayment schedule, Bank loan 0.0 5.0 5.0 5.0 5.0
Other assumptions
Common stock $ end balance 30.0 30.0 30.0 30.0 30.0 30.0

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EXCEL BASEMENT Calcs 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Calculations Year Year 1 Year 2 Year 3 Year 4 Year 5
PP&E
Net PP&E, beginning balance 198.5 226.5 255.3 285.1 316.0
Capital expenditures 43.9 46.9 50.2 53.7 57.5
Annual depreciation 15.9 18.1 20.4 22.8 25.3
PP&E, ending balance 198.5 226.5 255.3 285.1 316.0 348.3

Retained earnings
Beginning balance 177.0 212.3 249.5 288.7 330.1
Net income 44.2 46.5 49.0 51.7 54.8
Dividends paid 8.8 9.3 9.8 10.3 11.0
Ending balance 177.0 212.3 249.5 288.7 330.1 373.9

Operating working capital

Accounts receivable 82.0 87.7 93.9 100.5 107.5 115.0
Inventories 43.2 45.9 49.2 52.6 56.3 60.2
Total current assets except cash 125.2 133.7 143.0 153.1 163.8 175.2
Accts payable 49.1 52.5 56.2 60.1 64.3 68.8
Operating working capital 76.1 81.2 86.9 92.9 99.4 106.4

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EXCEL BASEMENT Debt 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Debt schedule Year Year 1 Year 2 Year 3 Year 4 Year 5
Short-term debt
Revolver
Amount of Revolver 0.0 0.0 0.0 0.0 0.0 0.0
Interest rate on Revolver 9.0% 9.0% 9.0% 9.0% 9.0% 9.0%
Interest expense 2.5 0.0 0.0 0.0 0.0 0.0

Long-term debt
7 1/2% bank drawdown loan
Beginning amount 0.0 70.0 75.0 70.0 65.0 60.0
Issuance 70.0 5.0 0.0 0.0 0.0 0.0
Scheduled repayment 0.0 0.0 5.0 5.0 5.0 5.0
Ending amount 70.0 75.0 70.0 65.0 60.0 55.0
Interest rate 7.5% 7.5% 7.5% 7.5% 7.5% 7.5%
Interest expense 2.6 5.4 5.4 5.1 4.7 4.3

Debt and interest expense summary

Short-term debt 0.0 0.0 0.0 0.0 0.0 0.0
Long-term debt 70.0 75.0 70.0 65.0 60.0 55.0
Total debt 70.0 75.0 70.0 65.0 60.0 55.0
Total interest expense ($) 5.1 5.4 5.4 5.1 4.7 4.3

Interest income calculation

Cash 2.4 9.7 7.3 5.6 4.6 4.2
Int. % on cash and cash equival 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%
Interest income 0.5 0.3 0.5 0.4 0.3 0.2

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EXCEL BASEMENT IncState 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Income statement Year Year 1 Year 2 Year 3 Year 4 Year 5
Revenues
Sales 820.0 877.4 938.8 1,004.5 1,074.9 1,150.1
COGS 557.6 596.6 638.4 683.1 730.9 782.1
Depreciation 13.8 15.9 18.1 20.4 22.8 25.3
Gross profit 248.6 264.9 282.3 301.0 321.1 342.7

Expenses
SG&A 188.6 201.8 215.9 231.0 247.2 264.5
Operating profit 60.0 63.1 66.4 70.0 73.9 78.2

Interest income 0.5

Interest expense 5.1
Net income before taxes 55.4 63.1 66.4 70.0 73.9 78.2

Taxes 16.6 18.9 19.9 21.0 22.2 23.5

Net income 38.8 44.2 46.5 49.0 51.7 54.8

Shareholder information
Weighted avg. shares outstandi 12.2 12.2 12.2 12.2 12.2 12.2
Dividends 7.8 8.8 9.3 9.8 10.3 11.0
Earnings per share $3.18 $3.62 $3.81 $4.02 $4.24 $4.49

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EXCEL BASEMENT BalSheet 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Balance sheet Year Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current assets
Cash 2.4 9.7 7.3 5.6 4.6 4.2
Accounts receivable 82.0 87.7 93.9 100.5 107.5 115.0
Inventories 43.2 45.9 49.2 52.6 56.3 60.2
Total current assets 127.6 143.3 150.4 158.7 168.4 179.4

Non-current assets
Net PP&E 198.5 226.5 255.3 285.1 316.0 348.3
Total assets 326.1 369.8 405.7 443.8 484.4 527.7

Liabilities
Current liabilities
Revolver 0.0 0.0 0.0 0.0 0.0 0.0
Accounts payable 49.1 52.5 56.2 60.1 64.3 68.8
Total current liabilities 49.1 52.5 56.2 60.1 64.3 68.8

Non-current liabilities
Total long-term debt 70.0 75.0 70.0 65.0 60.0 55.0
Total liabilities 119.1 127.5 126.2 125.1 124.3 123.8

Equity
Common stock 30.0 30.0 30.0 30.0 30.0 30.0
Retained earnings 177.0 212.3 249.5 288.7 330.1 373.9
Total equity 207.0 242.3 279.5 318.7 360.1 403.9
Total Liab.& Equity 326.1 369.8 405.7 443.8 484.4 527.7

Balance? 0.0 0.0 0.0 0.0 0.0 0.0

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EXCEL BASEMENT Cash 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Cash flow statement Year Year 1 Year 2 Year 3 Year 4 Year 5
Cash flow from operations
HINT:
Net income
From I/S 44.2 46.5 49.0 51.7 54.8
HINT:
Depreciation
Annual depr from Calcs 15.9 18.1 20.4 22.8 25.3
HINT:
(Increase
Subtract
in operating
currentworking
period from
capital)
previous period (Calcs)
(5.1) (5.7) (6.1) (6.5) (7.0)
HINT:
TotalSum
cash from operations 55.0 58.9 63.3 68.1 73.1

Cash flow from investing

HINT:
(Capital
From
expenditure)
Calcs. Notice signs and adjust if needed (43.9) (46.9) (50.2) (53.7) (57.5)
HINT:
TotalSum
cash from investing (43.9) (46.9) (50.2) (53.7) (57.5)

Cash flow from financing

HINT:
Increase
Do(decrease)
not includeinthe
LTD
Revolver! 5.0 (5.0) (5.0) (5.0) (5.0)
HINT:
Increase
Measure
(decrease)
change
in Common
on B/S from
stock
beg. to end of year; show
0.0 increase
0.0 as positive
0.0 0.0 0.0
HINT:
(Dividends)
From I/S (8.8) (9.3) (9.8) (10.3) (11.0)
HINT:
TotalSum
cash from financing (3.8) (14.3) (14.8) (15.3) (16.0)

HINT:
Total net
Sumchange
the three
in cash
subtotals 7.3 (2.3) (1.7) (1.0) (0.4)

How did cash change?

HINT:
Beginning
Amount
cashof cash the company had on hand at beginning
2.4 of year
9.7 7.3 5.6 4.6
HINT:
ChangeTotal
in cash
net from
changeCFSin cash, from above 7.3 (2.3) (1.7) (1.0) (0.4)
HINT:
Cash / Add
(Revolver)
beginning
at end
cashof and
yearchange in cash2.4 9.7 7.3 5.6 4.6 4.2

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EXCEL BASEMENT Summary 07/16/2024 04:58:27

Excel Basement Hist. Proj. Proj. Proj. Proj. Proj.

Summary Year Year 1 Year 2 Year 3 Year 4 Year 5
Size
From
Sales output sheet 820.0 877.4 938.8 1,004.5 1,074.9 1,150.1
From
Cash output
flow from
sheet
operations 0.0 55.0 58.9 63.3 68.1 73.1
From
Net income
output sheet 38.8 44.2 46.5 49.0 51.7 54.8

Profitability
From
Grossoutput
profit sheet 248.6 264.9 282.3 301.0 321.1 342.7
From
Operating
outputprofit
sheet 60.0 63.1 66.4 70.0 73.9 78.2
Op
Operating
profit tomargin
Sales 7.3% 7.2% 7.1% 7.0% 6.9% 6.8%
Net income/sales
margin 4.7% 5.0% 4.9% 4.9% 4.8% 4.8%
Net
Return
income/average
on assets total assets NA 12.7% 12.0% 11.5% 11.2% 10.8%
From
EPS Income Statement $3.18 $3.62 $3.81 $4.02 $4.24 $4.49

Leverage & Coverage

Total borrowed
debt to netfunds/Total
worth equity 33.8% 30.9% 25.0% 20.4% 16.7% 13.6%
Operating
EBIT profit + other income. Definitions vary;
60.0you might
63.1also want
66.4to include
70.0
interest 73.9
income. 78.2
Earnings
EBIT / Interest
before interest & taxes / interest 11.76
expensex 11.60 x 12.21 x 13.82 x 15.77 x 18.14 x

Asset management
From
Capital
output
expenditures
sheet 0.0 43.9 46.9 50.2 53.7 57.5
Capital expenditure to Sales 0.0% 5.0% 5.0% 5.0% 5.0% 5.0%
OWC to sales 9.3% 9.3% 9.3% 9.3% 9.3% 9.3%
Net PPE to Sales 39.8% 42.2% 43.2% 44.2% 45.1% 45.9%

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