Income statements exercise

User Generated

Ragnbmb

Business Finance

Description

You'll start with using historical income statements and build a ten year forecast using the information (attached in the document) in Lecture 2. This probably sounds easier than it is. I would suggest that you start with the unit growth (compounded) and forecast the units first. From there you have to calculate what you will charge per unit for general revenue and guess what you want to do with Management revenue. From here, you'll need to decide what expenses are fixed and what are variable and how the forecast should be calculated.

Remember that in this case that the units are driving the forecast.

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2007 UNITS 500,000 PRICE 2008 UNITS 540,000 PRICE 2009 UNITS 577,800 PRICE REVENUES Products Service $25,000,000.00 $1,500,000.00 $50.00 $28,080,000.00 $3.00 $1,593,000.00 $52.00 $30,946,968.00 $2.95 $1,675,620.00 53.56 2.90 TOTAL REVENUE $26,500,000.00 $53.00 $29,673,000.00 $54.95 $32,622,588.00 $56.46 EXPENSES COGS Administration Utilities Rent Depreciation Consultants Bad debt $10,000,000.00 $5,000,000.00 $200,000.00 $500,000.00 $500,000.00 $35,000.00 $15,000.00 $20.00 $11,124,000.00 $10.00 $5,151,600.00 $0.40 $205,200.00 $1.00 $513,000.00 $1.00 $502,200.00 $0.07 $43,200.00 $0.03 $10,800.00 $20.60 $12,260,916.00 $9.54 $5,304,204.00 $0.38 $213,786.00 $0.95 $531,576.00 $0.93 $502,686.00 $0.08 $40,446.00 $0.02 $17,334.00 $21.22 $9.18 $0.37 $0.92 $0.87 $0.07 $0.03 TOTAL EXPENSES $16,250,000.00 $32.50 $17,550,000.00 $32.50 $18,870,948.00 $32.66 EBIT Margin $10,250,000.00 38.68% $20.50 $12,123,000.00 40.86% $22.45 $13,751,640.00 42.15% $23.80 EBITDA Margin $10,750,000.00 40.57% $21.50 $12,625,200.00 42.55% $23.38 $14,254,326.00 43.69% $24.67
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Original data

2007
Units

Price
500,000

Revenues
Products
Service
Total revenue
Expenses
Cost of goods sold
Administration
Utilities
Rent
Depreciation
Consultants
Bad debt
Total expenses

2008
Units

2009
Price

540,000

Units

Price
577,800

$ 25,000,000.00 $ 50.00 $ 28,080,000.00 $ 52.00 $ 30,946,968.00 $ 53.56
$ 1,500,000.00 $ 3.00 $ 1,593,000.00 $ 2.95 $ 1,675,620.00 $ 2.90
$ 26,500,000.00 $ 53.00 $ 29,673,000.00 $ 54.95 $ 32,622,588.00 $ 56.46
$ 10,000,000.00
$ 5,000,000.00
$ 200,000.00
$ 500,000.00
$ 500,000.00
$
35,000.00
$
15,000.00
$ 16,250,000.00

$ 20.0...


Anonymous
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