BIOGEN CORPORATION

Forecasted Financial Statements

2 years. Parts C,D and E
[Thousands of Dollars]
Income Statements
Actual
2012
Net Sales
15000
Operating Expenses
-13000
Interest
-400
EBT
1600
Taxes (40%)
-640
Net Income (NI)
960
Cash Dividends (40% of NI)
Added Retained Earnings
Balance Sheets
Cash & Mkt Sec
Accounts Rec
Inventories
Total Current Assets
Fixed Assets, Net
Total Assets

-384
576
Actual
2012
1000
2000
2200
5200
6800
12000

Accounts Pay
1600
Bank Loan
1800
Acc Liab
1200
Total Current Liab
4600
Additional Funds Needed (AFN)
Long-Term Debt (New)
0
Long-Term Debt (Old)
2200
Common Stock
2400
Retained Earnings
2800
Total Iiab & Equity
12000

Percent of Sales-Based Forecasts

Percent
of Sales
Forecast Basis
100.00% Sales 2012 * 1.5
-86.67% 0.8667* sales 2013
-2.67%
10.67%
-4.27% 0.4*EBIT
6.40%
-2.56% 40% of NI
3.84%
Percent
of Sales
6.67%
13.33%
14.67%
34.67%
45.33%
80.00%

0.0667 * Sales 2013

0.133 * Sales 2013
0.1467 * Sales 2013
0.4533 * Sales 2013

10.67% 0.1067 * Sales 2013

12.00%
8.00% 0.0800 * Sales 2013
30.67%
0.00%
14.67%
16.00%
18.67% + income statement
80.00%

Base Forecast
[Without New Financing]
50% Growth
2013
22500
-19500
-400
2600
-1040
1560
-624
936

1500
3000
3300
7800
10200
18000
2400
1800
1800
6000
3664
0
2200
2400
3736
18000

[Note: Interest rate on all interest-bearing debt (bank loan and long-term, old and new, debt) is 10%.
AFN is met by issuing new long-term debt.]
Base Forecast
Statement of Cash Flows
2013
Net Income
Inc. in A/R
Inc. in Inv.
Inc. in A/P
Inc. in Acc. Liab.
CF from Operations

1560
-1000
-1100
800
600
860

Inc. in Fixed Assets, Net

CF from Investments

-3400
-3400

Inc. in Bank Loan

Inc. in Long-Term Debt (New)
Inc. in Common Stock
Payment of Cash Dividends
CF from Financing
Net Cash Flow
Beginning Cash
Ending Cash Before Borrowing
Target Ending Cash (% of sales)
Additional Funds Needed (AFN)
Cumulative AFN

0
0
0
-624
-624
-3164
1000
-2164
1500
3664
3664

Base Forecast
thout New Financing]
80% Growth
2014
40500
-35100
-400
5000
-2000
3000

Revised Forecast
[With New Financing]
50% Growth 80% Growth
2013
2014
22500
40500
-19500
-35100
-766
-1690
2234
3710
-893
-1484
1340
2226

-1200
1800

-536
804

-890
1335

2700
5400
5940
14040
18360
32400

1500
3000
3300
7800
10200
18000

2700
5400
5940
14040
18360
32400

4320
1800
3240
9360
12904
0
2200
2400
5536
32400

2400
1800
1800
6000
132
3664
2200
2400
3604
18000

4320
1800
3240
9360
596
12904
2200
2400
4940
32400

debt) is 10%.
Base Forecast
2014

Revised Forecast
2013
2014

3000
-2400
-2640
1920
1440
1320

1340
-1000
-1100
800
600
640

2226
-2400
-2640
1920
1440
546

-8160
-8160

-3400
-3400

-8160
-8160

0
0
0
-1200
-1200
-8040
1500
-6540
2700
9240
12904

0
3664
0
-536
3128
368
1000
1368
1500
132
132

0
9240
0
-890
8350
735
1500
2235
2700
465
596

BIOGEN CORPORATION
Additional Funds Needed (AFN) Before Added Financing Costs
5 Years.Parts F and G
[$ Thousands]
Income Statements
Actual Percent
2012 of Sales
Net Sales
15000 100.00%
Operating Expenses
-13000 -86.67%
Interest
-400
-2.67%
EBT
1600
10.67%
Taxes (40%)
-640
-4.27%
Net Income (NI)
960
6.40%
Cash Dividends (40% of NI)
Added Retained Earnings
Balance Sheets
Cash & Mkt Sec
Accounts Rec
Inventories
Total Current Assets
Fixed Assets, Net
Total Assets
Accounts Pay
Bank Loan
Acc Liab
Total Current Liab
Additional Funds Needed
Long-Term Debt
Common Stock
Retained Earnings
Total Iiab & Equity

-384
576

-2.56%
3.84%

Actual
2012
1000
2000
2200
5200
6800
12000

6.67%
13.33%
14.67%
34.67%
45.33%
80.00%

1600
1800
1200
4600

10.67%
12.00%
8.00%
30.67%

2200
2400
2800
12000

14.67%
16.00%
18.67%
80.00%

Sales Growth Rates

Forecast Basis
Net sales * 1.5
Sales * 0.8667

50%
2013
22500
-19500
-400
2600
-1040
1560
-624
936

Forecast Basis
Sales*0.067
Sales*0.1333
Sales*0.1467
Sales*0.4533

Sales*0.1067
Sales*0.08

2013
1500
3000
3300
7800
10200
18000
2400
1800
1800
6000
3664
2200
2400
3736
18000

[Note: Forecasts are prior to any new interest-bearing debt or equity financing.]
Statement of Cash Flows
Net Income
Change in A/R
Change in Inv.
Change in A/P
Change in Acc. Liab.
CF from Operations

2013
1560
-1000
-1100
800
600
860

Change in Fixed Assets, Net

CF from Investments

-3400
-3400

Change in Bank Loan

Change in Long-Term Debt

Change in Common Stock
Payment of Cash Dividends
CF from Financing
Net Cash Flow
Beginning Cash
Ending Cash Before Borrowing
Target Ending Cash
Additional Funds Needed (AFN)
Cumulative AFN

0
0
-624
-624
-3164
1000
-2164
1500
3664
3664

80%

100%

50%

20%

2014
40500
-35100
-400
5000
-2000
3000

2015
81000
-70200
-400
10400
-4160
6240

2016
121500
-105300
-400
15800
-6320
9480

2017
145800
-126360
-400
19040
-7616
11424

-1200
1800

-2496
3744

-3792
5688

-4570
6854

2014
2700
5400
5940
14040
18360
32400

2015
5400
10800
11880
28080
36720
64800

2016
8100
16200
17820
42120
55080
97200

2017
9720
19440
21384
50544
66096
116640

4320
1800
3240
9360
12904
2200
2400
5536
32400

8640
1800
6480
16920
34000
2200
2400
9280
64800

12960
1800
9720
24480
53152
2200
2400
14968
97200

15552
1800
11664
29016
61202
2200
2400
21822
116640

2014
3000
-2400
-2640
1920
1440
1320

2015
6240
-5400
-5940
4320
3240
2460

2016
9480
-5400
-5940
4320
3240
5700

2017
11424
-3240
-3564
2592
1944
9156

-8160
-8160

-18360
-18360

-18360
-18360

-11016
-11016

0
0
-1200
-1200

0
0
-2496
-2496

0
0
-3792
-3792

0
0
-4570
-4570

-8040
1500
-6540
2700
9240
12904

-18396
2700
-15696
5400
21096
34000

-16452
5400
-11052
8100
19152
53152

-6430
8100
1670
9720
8050
61202

BIOGEN CORPORATION
AFN [With Interest on Old and New Interest-Bearing Debt]
5 Years.Part H
[$ Thousands]
Income Statements
Actual Percent
2012 of Sales
Net Sales
15000 100.00%
Operating Expenses
-13000 -86.67%
Interest
-400
-2.67%
EBT
1600
10.67%
Taxes (40%)
-640
-4.27%
Net Income (NI)
960
6.40%
Cash Dividends (40% of NI)
Added Retained Earnings
Balance Sheets
Cash & Mkt Sec
Accounts Rec
Inventories
Total Current Assets
Fixed Assets, Net
Total Assets
Accounts Pay
Bank Loan
Acc Liab
Total Current Liab
Additional Funds Needed
Long-Term Debt (Old)
Long-Term Debt (New)
Common Stock (New)
Common Stock (Old)
Retained Earnings
Total Iiab & Equity

-384
576

-2.56%
3.84%

Actual
2012
1000
2000
2200
5200
6800
12000

6.67%
13.33%
14.67%
34.67%
45.33%
80.00%

1600
1800
1200
4600
0
2200

2400
2800
12000

10.67%
12.00%
8.00%
30.67%
0.00%
14.67%
0.00%
0.00%
16.00%
18.67%
80.00%

Sales Growth Rates

Forecast Basis
Sales * 1.5
Sales * 0.8667
-0.1(bank, AFN, long )

50%
2013
22500
-19500
-766
2234
-893
1340
-536
804

Forecast Basis
0.0667 * Sales 2013
0.133 * Sales 2013
0.1467 * Sales 2013
0.4533 * Sales 2013

0.1067 * Sales 2013

0.0800 * Sales 2013

2013
1500
3000
3300
7800
10200
18000
2400
1800
1800
6000
132
2200
1832
1832
2400
3604
18000

AFN from first iteration =

Combined AFN =
[Note: AFN is financed by 50% new long-term debt and 50% new common stock issues.
Interest rate on all interest-bearing debt (bank loan and long-term, old and new, debt) is 10%,]
Statement of Cash Flows
Net Income
Change in A/R
Change in Inv.
Change in A/P
Change in Acc. Liab.

2013
1340
-1000
-1100
800
600

CF from Operations

640

Change in Fixed Assets, Net

CF from Investments

-3400
-3400

Change in Bank Loan

Change in Long-Term Debt
Change in Common Stock
Payment of Cash Dividends
CF from Financing

0
1832
1832
-536
3128

Net Cash Flow

Beginning Cash
Ending Cash Before Borrowing
Target Ending Cash
Additional Funds Needed (AFN)
Cumulative AFN

368
1000
1368
1500
132
132

80%

100%

50%

20%

2014
40500
-35100
-1690
3710
-1484
2226

2015
81000
-70200
-3800
7000
-2800
4200

2016
121500
-105300
-5715
10485
-4194
6291

2017
145800
-126360
-6520
12920
-5168
7752

-890
1335

-1680
2520

-2516
3775

-3101
4651

2014
2700
5400
5940
14040
18360
32400

2015
5400
10800
11880
28080
36720
64800

2016
8100
16200
17820
42120
55080
97200

2017
9720
19440
21384
50544
66096
116640

4320
1800
3240
9360
596
2200
6452
6452
2400
4940
32400

8640
1800
6480
16920
1820
2200
17000
17000
2400
7460
64800

12960
1800
9720
24480
3734
2200
26576
26576
2400
11234
97200

15552
1800
11664
29016
5937
2200
30601
30601
2400
15885
116640

2014
2226
-2400
-2640
1920
1440

2015
4200
-5400
-5940
4320
3240

2016
6291
-5400
-5940
4320
3240

2017
7752
-3240
-3564
2592
1944

546

420

2511

5484

-8160
-8160

-18360
-18360

-18360
-18360

-11016
-11016

0
4620
4620
-890
8350

0
10548
10548
-1680
19416

0
9576
9576
-2516
16636

0
8050
8050
-3101
12998

735
1500
2235
2700
465
596

1476
2700
4176
5400
1224
1820

787
5400
6187
8100
1913
3734

7466
8100
15566
9720
-5846
-2112