Sales growth 10%

Current assets/Sales 26%

Current liabilities/Sales 25%
Net fixed assets/Sales 75%
Costs of goods sold/Sales 60%
Depreciation rate 4%
Interest rate on debt 4.71%

Tax rate 33%

Dividend payout ratio 40%

Year 0 1
Income statement
Sales 15,394 16,934
Costs of goods sold 9,261 10,186.72
Interest payments on debt 118 118

Depreciation 775 491.15

Profit before tax 5,240 6,137
Taxes 1,734 2,030.44
Profit after tax 3,506 4,107
Dividends 1,642.73
Retained earnings 2,464

Balance sheet
Cash and marketable securities 542
Current assets 3,949
Fixed assets
At cost 18,289
Depreciation (6,700)
Net fixed assets 11,589
Total assets 16,080

Current liabilities 3,809

Debt 2,516
Stock 554
Accumulated retained earnings 9,202
Total liabilities and equity 16,080
 A B C D E
1
2 Sales growth 10%
3 Current assets/Sales 26%
4 Current liabilities/Sales 25%
5 Net fixed assets/Sales 75%
6 Costs of goods sold/Sales 60%
7 Depreciation rate 4%
8 Interest rate on debt 4.71%
9 Interest paid on cash and marketable securities
10 Tax rate 33%
11 Dividend payout ratio 40%
12
13 Year 0 1 2 3
14 Income statement
15 Sales 15,394
16 Costs of goods sold 9,261
17 Interest payments on debt 118
18
19 Depreciation 775
20 Profit before tax 5,240
21 Taxes 1,734
22 Profit after tax 3,506
23 Dividends (1,403)
24 Retained earnings 2,104
25
26 Balance sheet
27 Cash and marketable securities 542
28 Current assets 3,949
29 Fixed assets
30 At cost 18,289
31 Depreciation (6,700)
32 Net fixed assets 11,589
33 Total assets 16,080
34
35 Current liabilities 3,809
36 Debt 2,516
37 Stock 554
38 Accumulated retained earnings 9,202
39 Total liabilities and equity 16,080
40
41
42
43 CONSOLIDATED STATEMENT OF CASH FLOWS: RECONCILING THE CASH
44 Cash flow from operating activities
45 Profit after tax
46 Add back depreciation
47 Adjust for changes in net working capital:
 A B C D E
48 Subtract increase in current assets
49 Add back increase in current liabilities
50 Net cash from operating activities
51
52 Cash flow from investing activities
53 Aquisitions of fixed assets--capital expenditures
54
55
56 Net cash used in investing activities
57
58 Cash flow from financing activities
59 Net proceeds from borrowing activities
60 Net proceeds from stock issues, repurchases
61 Dividends paid
62 Net cash from financing activities
63
64 Net increase in cash and cash equivalents
65 Check: changes in cash and mkt. securities
 F G H
1
2
3
4
5
6
7
8
9
10
11
12
13 4 5
14
15 <-- =F15*(1+$B$2)
16 <-- =-G15*$B$6
17 <-- =-$B$8*(F36+G36)/2
18
19 <-- =-$B$7*(G30+F30)/2
20 <-- =SUM(G15:G19)
21 <-- =-G20*$B$10
22 <-- =G21+G20
23 <-- =-$B$11*G22
24 <-- =G23+G22
25
26
27 <-- =G39-G28-G32
28 <-- =G15*$B$3
29
30 <-- =G32-G31
31 <-- =F31+G19
32 <-- =G15*$B$5
33 <-- =G32+G28+G27
34
35 <-- =G15*$B$4
36 <-- =F36
37 <-- =F37
38 <-- =F38+G24
39 <-- =SUM(G35:G38)
40
41
42
S: RECONCILING
43 THE CASH BALANCES
44
45 <-- =G22
46 <-- =-G19
47
 F G H
48 <-- =-(G28-F28)
49 <-- =G35-F35
50 <-- =SUM(G45:G49)
51
52
53 <-- =-(G30-F30)
54
55
56 <-- =SUM(G53:G55)
57
58
59 <-- =G36-F36
60 <-- =G37-F37
61 <-- =G23
62 <-- =SUM(G59:G61)
63
64 <-- =G62+G56+G50
65 <-- =G27-F27