ABC

Income Statement
(millons)
2018
Sales $ 1,600.00
Cost of Goods Solds -$ 900.00
Gross profits $ 700.00

Operating expenses -$ 255.00

Depreciation -$ 70.00
Operating profits (EBIT) $ 375.00

Other income -
Other Expenses -$ 15.00
Interest expense -$ 30.00
Profits before taxes $ 330.00

Taxes -$ 130.00
Net profits $ 200.00

Dividends $ 120.00

ABC
Balance Sheet
(millons)
2017 2018
Assets:
Current Assets
Cash and equivalents $ 70.00 $ 40.00
Short term investments $ - $ -
Account receivables $ 320.00 $ 420.00
Inventories $ 360.00 $ 470.00
Other $ 50.00 $ 70.00
Total current assets $ 800.00 $ 1,000.00

Fixed assets
P, P & E $ 2,040.00 $ 2,200.00
Accumulated depreciation -$ 840.00 -$ 800.00
P, P & E net $ 1,200.00 $ 1,400.00

Intangibles and other $ 150.00 $ 200.00

Total fixed assets $ 1,350.00 $ 1,600.00

Total assets $ 2,150.00 $ 2,600.00

Liabilities and equity
Current liabilities
Short term debt
Accounts payables $ 320.00 $ 440.00
Other account payables $ 170.00 $ 360.00
Accumulated expenses $ 60.00 $ 80.00
Total current liabilities $ 550.00 $ 880.00

Long term liabilities

Deferred taxes $ 75.00 $ 100.00
Long term debt $ 250.00 $ 200.00
Total long term liabilities $ 325.00 $ 300.00

Total liabilities $ 875.00 $ 1,180.00

Equity:
Common stocks $ 500.00 $ 565.00
Retained earnings $ 775.00 $ 855.00

Total equity 1,275 1,420

Total liabilities and equity 2,150 2,600

Test - -

ABC
Statement of Cash Flow
(millons)
2018 2019 2020
Operating activities
Net profits 200
Depreciation 70
Interest 30
Deferred taxes 25

Current assets:
Account receivables (100)
Inventories (110)
Other (20)

Current liabilities:
Accounts payables 120
Other account payables 190
Accumulated expenses 20
Cash from operating activities 425

Investment activities
Short term investments -
P,P & E (160)
Intangibles and other (50)

Cash from investing activities (210)

Financing activities
Short term debt -
Interest (30)
Long term debt (50)
Common stocks 65
Dividends (120)

Cash from financing activities (135)

Change in cash and equivalents 80

Initial balance 70

Final balance in cash and equivalents 150

ABC Peer group

Financial Ratios Financial Ratios
2021 2022 2023
 ABC
Assumptios table
2019 - 2023
2017 2018 2019
Sales growth 5.00%
COGS 56.25% 55.00%
Expenses 15.94% 15.15%
Cash days 9.13 9.00
Accounts receivables days 95.81 87.00
Inventory days 190.61 170.00
Accounts payable days 86.38 46.98
Capital Expeditures (CAPEX) 10.00% 5.00%
% depreciation of PPE 5.00%
Accumulated expenses to expenses 31.37% 30.00%
Interest rate on financial debts (short and long term) 6.00% 6.00%
Debt reduction index 95.00% 95.00%
Interest rate on short term investments 3.00% 3.00%
Taxes 39.39% 35.00%
Dividend payout (as a fraction of net profits) 60.00% 50.00%

ABC
Income statements
2019 - 2023
2018 2019
Sales $ 1,600.00 1,680
Cost of Goods Solds -$ 900.00 (924)
Gross profits $ 700.00 756

Operating expenses -$ 255.00 (255)

Depreciation -$ 70.00 (116)
Operating profits (EBIT) $ 375.00 $ 385.98

Other income $ - -
Other expenses -$ 15.00
Interest expense -$ 30.00 11
Profits before taxes $ 330.00 397

Taxes -$ 130.00 (139)

Net profits $ 200.00 258

Dividends $ 120.00 129

ABC
Balance sheet
 2019 - 2023
2017 2018 2019
Assets:
Current Assets
Cash and equivalents $ 70.00 $ 40.00 (401)
Short term investments $ - $ -
Account receivables $ 320.00 $ 420.00 400
Inventories $ 360.00 $ 470.00 430
Other $ 50.00 $ 70.00 70
Total current assets $ 800.00 $ 1,000.00 500

Fixed assets
P, P & E $ 2,040.00 $ 2,200.00 2,310
Accumulated depreciation -$ 840.00 -$ 800.00 (916)
P, P & E net $ 1,200.00 $ 1,400.00 1,395

Intangibles and other $ 150.00 $ 200.00 200

Total fixed assets $ 1,350.00 $ 1,600.00 1,595

Total assets $ 2,150.00 $ 2,600.00 2,094

Liabilities and equity

Current liabilities
Short term debt
Accounts payables $ 320.00 $ 440.00 119
Other account payables $ 170.00 $ 360.00 -
Accumulated expenses $ 60.00 $ 80.00 76
Total current liabilities $ 550.00 $ 880.00 195

Long term liabilities

Deferred taxes $ 75.00 $ 100.00 50
Long term debt $ 250.00 $ 200.00 190
Total long term liabilities $ 325.00 $ 300.00 240

Total liabilities $ 875.00 $ 1,180.00 435

Equity:
Common stocks $ 500.00 $ 565.00 565
Retained earnings $ 775.00 $ 855.00 984
-
Total equity $ 1,275.00 $ 1,420.00 1,549

Total liabilities and equity $ 2,150.00 $ 2,600.00 1,984

Test - - (110)
 ABC
Statement of cash flow
2019 - 2023
2018 2019
Operating activities
Net profits 200 258
Depreciation 70 116
Interest 15 (11)
Deferred taxes 25 (50)

Current assets:
Account receivables (100) 20
Inventories (110) 40
Other (20) -

Current liabilities:
Accounts payables 120 (321)
Other account payables 190 (360)
Accumulated expenses 20 (4)

Cash from operating activities 410 (313)

Investment activities
Short term investments - -
P,P & E (160) (110)
Intangibles and other (50) -

Cash from investing activities (210) (110)

Financing activities
Short term debt - -
Interest (15) 11
Long term debt (50) (10)
Common stocks 65 -
Dividends (120) (129)

Cash from financing activities (120) (128)

Change in cash and equivalents 80 (551)

Initial balance 70 150

Final balance in cash and equivalents 150 (401)

Optimal cash and equivalent balance 40 41

Difference 110 (442)

ABC
Financial Ratios

ABC
FCF, NPV y IRR
2019 - 2023
 2020 2021 2022 2023
7.00% 9.00% 12.00% 15.00%
53.75% 52.50% 51.25% 50.00%
14.36% 13.58% 12.79% 12.00%
9.00 9.00 9.00 9.00
78.00 69.00 60.00 50.00
150.00 130.00 110.00 90.00
46.98 46.98 46.98 46.98
5.00% 5.00% 5.00% 5.00%
5.00% 5.00% 5.00% 5.00%
28.00% 26.00% 24.00% 20.00%
6.00% 6.00% 6.00% 6.00%
95.00% 95.00% 95.00% 95.00%
3.00% 3.00% 3.00% 3.00%
35.00% 35.00% 35.00% 35.00%
40.00% 40.00% 40.00% 40.00%

2020 2021 2022 2023

1,798 1,959 2,195 2,524
(966) (1,029) (1,125) (1,262)
831 931 1,070 1,262

(258) (266) (281) (303)

(121) (127) (134) (140)
$ 451.93 $ 537.38 $ 655.50 $ 818.61

- - - -

11 10 10 9
463 548 665 828

(162) (192) (233) (290)

301 356 432 538

120 142 173 215

 2020 2021 2022 2023

(223) 37 342 717

384 370 361 346

397 366 339 311
70 70 70 70
628 844 1,111 1,444

2,426 2,547 2,674 2,808

(1,037) (1,164) (1,298) (1,438)
1,389 1,383 1,376 1,370

200 200 200 200

1,589 1,583 1,576 1,570

2,217 2,426 2,688 3,013

124 132 145 162

- - - -
72 69 67 61
197 202 212 223

- - - -
181 171 163 155
181 171 163 155

377 373 375 378

565 565 565 565

1,165 1,378 1,638 1,961
- - - -
1,730 1,943 2,203 2,526

2,107 2,316 2,578 2,903

(110) (110) (110) (110)

2020 2021 2022 2023

301 356 432 538

121 127 134 140
(11) (10) (10) (9)
(50) - - -

16 14 10 15
33 31 27 28
- - - -

5 8 12 18
- - - -
(4) (3) (2) (7)

412 522 604 723

- - - -
(116) (121) (127) (134)
- - - -

(116) (121) (127) (134)

- - - -
11 10 10 9
(10) (9) (9) (8)
- - - -
(120) (142) (173) (215)

(119) (141) (172) (214)

178 260 305 375

(401) (223) 37 342

(223) 37 342 717

 44 48 54 62

(267) (12) 288 655

 ABC
Assumptios table
2019 - 2023

ABC
Income statements
2019 - 2023

ABC
Balance sheet
2019 - 2023

ABC
Statement of cash flow
2019 - 2023

ABC
FCF, NPV y IRR
2019 - 2023

Sensibility table
 ABC
Assumptios table
2019 - 2023

ABC
Income statements
2019 - 2023

ABC
Balance sheet
2019 - 2023

ABC
Statement of cash flow
2019 - 2023
2018 2019

ABC
FCF, NPV y IRR
2019 - 2023
2018 2019

Breakeven table
2020 2021 2022 2023

2020 2021 2022 2023

 ABC
Assumptios table
2019 - 2023

ABC
Income statements
2019 - 2023

ABC
Balance sheet
2019 - 2023

ABC
Statement of cash flow
2019 - 2023

ABC
FCF, NPV y IRR
2019 - 2023

Scenarios table

Scenarios table (efficiency)

 ABC
Assumptions table

ABC
Income statements
2019 - 2023

ABC
Balance sheet
2019 - 2023

ABC
Statement of cash flow
2019 - 2023

ABC
FCF, NPV y IRR
2019 - 2023

Simulation table