Tucker Hess

BIOTECH CORPORATION
Forecasted Financial Statements
2 years. Parts C,D and E
[Thousands of Dollars]
Income Statements
Actual
2014
Net Sales
$15,000.00
Operating Expenses
-$13,000.00
Interest
-$400.00
EBT
$1,600.00
Taxes (40%)
-$640.00
Net Income (NI)
$960.00
Cash Dividends (40% of NI)
Added Retained Earnings
Balance Sheets
Cash & Mkt Sec
Accounts Rec
Inventories
Total Current Assets
Fixed Assets, Net
Total Assets

Percent of Sales-Based Forecasts

Percent
of Sales
100.00%
-86.67%

Forecast Basis

6.40%

-$384.00
$576.00
Actual
2014
$1,000.00
$2,000.00
$2,200.00
$5,200.00
$6,800.00
$12,000.00

Accounts Pay
$1,600.00
Bank Loan
$1,800.00
Acc Liab
$1,200.00
Total Current Liab
$4,600.00
Additional Funds Needed (AFN)
Long-Term Debt (New)
$0.00
Long-Term Debt (Old)
$2,200.00
Common Stock
$2,400.00
Retained Earnings
$2,800.00

Base Forecast
[Without New Financing]
50% Growth 80% Growth
2015
2016
$22,500.00 $40,500.00
-$19,500.00 -$35,100.00
-$400.00
-$400.00
$2,600.00
$5,000.00
-$1,040.00
-$2,000.00
$1,560.00
$3,000.00

Revised Forecast
[With New Financing]
50% Growth
2015
$22,500.00
-$19,500.00
-$766.40
$2,233.60
-$893.44
$1,340.16

-$624.00
$936.00

-$1,200.00
$1,800.00

-$536.06
$804.10

2015
$1,500.00
$3,000.00
$3,300.00
$7,800.00
$10,200.00
$18,000.00

2016
$2,700.00
$5,400.00
$5,940.00
$14,040.00
$18,360.00
$32,400.00

2015
$1,500.00
$3,000.00
$3,300.00
$7,800.00
$10,200.00
$18,000.00

$2,400.00
$1,800.00
$1,800.00
$6,000.00
$3,664.00

$4,320.00
$1,800.00
$3,240.00
$9,360.00
$12,904.00

$2,200.00
$2,400.00
$3,736.00

$2,200.00
$2,400.00
$5,536.00

$2,400.00
$1,800.00
$1,800.00
$6,000.00
$131.90
$3,664.00
$2,200.00
$2,400.00
$3,604.10

Percent
of Sales
6.67%
13.33%
14.67%
34.67%
45.33%
80.00%
10.67%
8.00%
required to balance

Total Iiab & Equity

$12,000.00

$14,336.00 $19,496.00
$18,000.00 $32,400.00
[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
2015
2016
Net Income
$1,560.00
$3,000.00
Inc. in A/R
-$1,000.00
-$2,400.00
Inc. in Inv.
-$1,100.00
-$2,640.00
Inc. in A/P
$800.00
$1,920.00
Inc. in Acc. Liab.
$600.00
$1,440.00
CF from Operations
$860.00
$1,320.00

$17,868.10
$18,000.00

Inc. in Fixed Assets, Net

CF from Investments

-$3,400.00
-$3,400.00

-$8,160.00
-$8,160.00

-$3,400.00
-$3,400.00

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

$0.00
$0.00
$0.00
-$624.00
-$624.00
-$3,164.00
$1,000.00
-$2,164.00
$1,500.00
$3,664.00
$3,664.00

$0.00
$0.00
$0.00
-$1,200.00
-$1,200.00
-$8,040.00
$1,500.00
-$6,540.00
$2,700.00
$9,240.00
$12,904.00

$3,664.00
$0.00
-$536.06
$3,127.94
$368.10
$1,000.00
$1,368.10
$1,500.00
$131.90
$131.90

Revised Forecast
2015
$1,340.16
-$1,000.00
-$1,100.00
$800.00
$600.00
$640.16

Revised Forecast
With New Financing]
80% Growth
2016
$40,500.00
-$35,100.00
-$1,690.40
$3,709.60
-$1,483.84
$2,225.76
-$890.30
$1,335.46

2016
$2,700.00
$5,400.00
$5,940.00
$14,040.00
$18,360.00
$32,400.00
$4,320.00
$1,800.00
$3,240.00
$9,360.00
$596.45
$12,904.00
$2,200.00
$2,400.00
$4,939.55

$31,803.55
$32,400.00

Revised Forecast
2016
$2,225.76
-$2,400.00
-$2,640.00
$1,920.00
$1,440.00
$545.76
-$8,160.00
-$8,160.00

$9,240.00
$0.00
-$890.30
$8,349.70
$735.46
$1,500.00
$2,235.46
$2,700.00
$464.54
$596.45

BIOTECH CORPORATION
Additional Funds Needed (AFN) Before Added Financing Costs
5 Years.Parts F and G
[$ Thousands]
Income Statements
Actual Percent
2014 of Sales
Net Sales
$15,000.00 100.00%
Operating Expenses
-$13,000.00 -86.67% of sales
Interest
-$400.00
EBT
$1,600.00
Taxes (40%)
-$640.00
Net Income (NI)
$960.00
6.40% PM
Cash Dividends (40% of NI)
Added Retained Earnings

Forecast Basis
sales(0) x (1+g)
sales x .8667
fixed
net sales less op exp & int exp
EBT @ 40%

80%

100%

50%

20%

2015
2016
2017
2018
2019
$22,500.00 $40,500.00 $81,000.00 $121,500.00 $145,800.00
-$19,500.00 -$35,100.00 -$70,200.00 -$105,300.00 -$126,360.00
-$400.00
-$400.00
-$400.00
-$400.00
-$400.00
$2,600.00 $5,000.00 $10,400.00 $15,800.00 $19,040.00
$1,040.00 $2,000.00 $4,160.00
$6,320.00
$7,616.00
$1,560.00 $3,000.00 $6,240.00
$9,480.00
$11,424.00
$3,792.00
$5,688.00

$4,569.60
$6,854.40

2015
2016
2017
$1,500.00 $2,700.00 $5,400.00
$3,000.00 $5,400.00 $10,800.00
$3,300.00 $5,940.00 $11,880.00
$7,800.00 $14,040.00 $28,080.00
$10,200.00 $18,360.00 $36,720.00
$18,000.00 $32,400.00 $64,800.00

2018
$8,100.00
$16,200.00
$17,820.00
$42,120.00
$55,080.00
$97,200.00

2019
$9,720.00
$19,440.00
$21,384.00
$50,544.00
$66,096.00
$116,640.00

$2,400.00 $4,320.00 $8,640.00

$1,800.00 $1,800.00 $1,800.00
$1,800.00 $3,240.00 $6,480.00
$6,000.00 $9,360.00 $16,920.00
$3,664.00 $12,904.00 $34,000.00
$2,200.00 $2,200.00 $2,200.00
$2,400.00 $2,400.00 $2,400.00
$3,736.00 $5,536.00 $9,280.00
$14,336.00 $19,496.00 $30,800.00
$18,000.00 $32,400.00 $64,800.00

$12,960.00
$1,800.00
$9,720.00
$24,480.00
$53,152.00
$2,200.00
$2,400.00
$14,968.00
$44,048.00
$97,200.00

$15,552.00
$1,800.00
$11,664.00
$29,016.00
$61,201.60
$2,200.00
$2,400.00
$21,822.40
$55,438.40
$116,640.00 check .balances

Net Income
Change in A/R
Change in Inv.
Change in A/P
Change in Acc. Liab.
CF from Operations

2015
$1,560.00
-$1,000.00
-$1,100.00
$800.00
$600.00
$860.00

2016
$3,000.00
-$2,400.00
-$2,640.00
$1,920.00
$1,440.00
$1,320.00

2017
$6,240.00
-$5,400.00
-$5,940.00
$4,320.00
$3,240.00
$2,460.00

2018
$9,480.00
-$5,400.00
-$5,940.00
$4,320.00
$3,240.00
$5,700.00

2019
$11,424.00
-$3,240.00
-$3,564.00
$2,592.00
$1,944.00
$9,156.00

Change in Fixed Assets, Net

CF from Investments

-$3,400.00
-$3,400.00

-$8,160.00 -$18,360.00
-$8,160.00 -$18,360.00

-$18,360.00
-$18,360.00

-$11,016.00
-$11,016.00

Change in Bank Loan

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

$0.00
$0.00
$0.00
-$624.00
-$624.00

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 (Old)
Total liab & Equity (New)

Actual
2014
$1,000.00
$2,000.00
$2,200.00
$5,200.00
$6,800.00
$12,000.00
$1,600.00
$1,800.00
$1,200.00
$4,600.00
$0.00
$2,200.00
$2,400.00
$2,800.00
$12,000.00

40.00% of NI

50%

$2,496.00
$3,744.00

Balance Sheets

-$384.00
$576.00

Sales Growth Rates

$624.00
$936.00

6.67% of sales
13.33% of sales
14.67% of sales

Forecast Basis
projected sales x .0667
projected sales x .1333
projected sales x .1467

45.33% of sales

projected sales x .4533

10.67% of sales

projected sales x .1067

fixed

8.00% of sales
total assets - total liab/eq(old)

prev year's R/E + forecasted r/e

$1,200.00
$1,800.00

[Note: Forecasts are prior to any new interest-bearing debt or quity financing.)

Statement of Cash Flows

Net Cash Flow

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

$0.00
$0.00
$0.00
-$1,200.00
-$1,200.00

$0.00
$0.00
$0.00
-$2,496.00
-$2,496.00

$0.00
$0.00
$0.00
-$3,792.00
-$3,792.00

$0.00
$0.00
$0.00
-$4,569.60
-$4,569.60

-$3,164.00 -$8,040.00
$1,000.00 $1,500.00
-$2,164.00 -$6,540.00
$1,500.00 $2,700.00
$3,664.00 $9,240.00
$3,664.00 $12,904.00

-$18,396.00
$2,700.00
-$15,696.00
$5,400.00
$21,096.00
$34,000.00

-$16,452.00
$5,400.00
-$11,052.00
$8,100.00
$19,152.00
$53,152.00

-$6,429.60
$8,100.00
$1,670.40
$9,720.00
$8,049.60
$61,201.60

Basis : Cash flow item's change in signs will be according to how they AFFECT cash

BIOTECH CORPORATION
AFN [With Interest on Old and New Interest-Bearing Debt]
5 Years.Part H
[$ Thousands]
Income Statements
Actual Percent
2014 of Sales
Net Sales
$15,000.00 100.00%
Operating Expenses
-$13,000.00 -86.67% of sales
Interest
-$400.00
EBT
$1,600.00
Taxes (40%)
-$640.00
Net Income (NI)
$960.00
6.40% PM
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 (Old)

-$384.00
$576.00
Actual
2014
$1,000.00
$2,000.00
$2,200.00
$5,200.00
$6,800.00
$12,000.00
$1,600.00
$1,800.00
$1,200.00
$4,600.00
$0.00
$2,200.00

Sales Growth Rates

Forecast Basis
sales(0) x (1+g)
sales x .8667
fixed
net sales less op exp & int exp
EBT @ 40%

40.00% of NI

6.67% of sales
13.33% of sales
14.67% of sales

Forecast Basis
projected sales x .0667
projected sales x .1333
projected sales x .1467

45.33% of sales

projected sales x .4533

10.67% of sales

projected sales x .1067

fixed

8.00% of sales
total assets - total liab/eq(old)

prev year's R/E + forecasted r/e

80%

100%

50%

2015
2016
2017
2018
$22,500.00 $40,500.00 $81,000.00 $121,500.00
-$19,500.00 -$35,100.00 -$70,200.00 -$105,300.00
-$583.20 -$1,045.20 -$2,100.00
-$3,057.60
$2,416.80 $4,354.80 $8,700.00 $13,142.40
$966.72 $1,741.92 $3,480.00
$5,256.96
$1,450.08 $2,612.88 $5,220.00
$7,885.44
$580.03
$870.05

AFN(t)/2
AFN(t)/2
$2,400.00
$2,800.00
$12,000.00

50%

$1,045.15
$1,567.73

$2,088.00
$3,132.00

$3,154.18
$4,731.26

2015
2016
2017
$1,500.00 $2,700.00 $5,400.00
$3,000.00 $5,400.00 $10,800.00
$3,300.00 $5,940.00 $11,880.00
$7,800.00 $14,040.00 $28,080.00
$10,200.00 $18,360.00 $36,720.00
$18,000.00 $32,400.00 $64,800.00

2018
$8,100.00
$16,200.00
$17,820.00
$42,120.00
$55,080.00
$97,200.00

$2,400.00 $4,320.00
$1,800.00 $1,800.00
$1,800.00 $3,240.00
$6,000.00 $9,360.00
$65.95
$298.22
$2,200.00 $2,200.00
$1,832.00 $6,452.00
$1,832.00 $6,452.00
$2,400.00 $2,400.00
$3,670.05 $5,237.78
$17,934.05 $32,101.78

$12,960.00
$1,800.00
$9,720.00
$24,480.00
$1,866.96
$2,200.00
$26,576.00
$26,576.00
$2,400.00
$13,101.04
$95,333.04

$8,640.00
$1,800.00
$6,480.00
$16,920.00
$910.22
$2,200.00
$17,000.00
$17,000.00
$2,400.00
$8,369.78
$63,889.78

Total liab & Equity (New)

AFN from first iteration =
Combined AFN

$13,334.05 $27,501.78 $59,289.78

$3,664.00 $12,904.00 $34,000.00
$3,729.95 $13,202.22 $34,910.22

$90,733.04
$53,152.00
$55,018.96

[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.
CF from Operations

2015
$1,450.08
-$1,000.00
-$1,100.00
$800.00
$600.00
$750.08

2016
$2,612.88
-$2,400.00
-$2,640.00
$1,920.00
$1,440.00
$932.88

2017
$5,220.00
-$5,400.00
-$5,940.00
$4,320.00
$3,240.00
$1,440.00

2018
$7,885.44
-$5,400.00
-$5,940.00
$4,320.00
$3,240.00
$4,105.44

Change in Fixed Assets, Net

CF from Investments

-$3,400.00
-$3,400.00

-$8,160.00 -$18,360.00
-$8,160.00 -$18,360.00

-$18,360.00
-$18,360.00

Change in Bank Loan

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

$0.00
$1,832.00
$1,832.00
-$580.03
$3,083.97

$0.00
$0.00
$4,620.00 $10,548.00
$4,620.00 $10,548.00
-$1,045.15 -$2,088.00
$8,194.85 $19,008.00

$0.00
$9,576.00
$9,576.00
-$3,154.18
$15,997.82

Net Cash Flow

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

$434.05
$1,000.00
$1,434.05
$1,500.00
$65.95
$65.95

$967.73
$1,500.00
$2,401.78
$2,700.00
$232.27
$298.22

$2,088.00
$2,700.00
$4,489.78
$5,400.00
$612.00
$910.22

$1,743.26
$5,400.00
$6,233.04
$8,100.00
$956.74
$1,866.96

20%
2019
$145,800.00
-$126,360.00
-$3,460.08
$15,979.92
$6,391.97
$9,587.95
$3,835.18
$5,752.77

2019
$9,720.00
$19,440.00
$21,384.00
$50,544.00
$66,096.00
$116,640.00
$15,552.00
$1,800.00
$11,664.00
$29,016.00
$2,968.59
$2,200.00
$30,600.80 *
$30,600.80 *
$2,400.00
$18,853.81
$113,671.41

$109,071.41 check .balances

$61,201.60
$64,170.19

2019
$9,587.95
-$3,240.00
-$3,564.00
$2,592.00
$1,944.00
$7,319.95
-$11,016.00
-$11,016.00
$0.00
$4,024.80
$4,024.80
-$3,835.18
$4,214.42
$518.37
$8,100.00
$6,751.41
$9,720.00
$1,101.63
$2,968.59

Basis : Cash flow item's change signs will be according to how they AFFECT cash