Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
PHARMA BIOTECH CORPORATION
Forecasted Financial Statements Percent of Sales-Based Forecasts
Chapter 6 Mini Case--2 years
Base Forecast Revised Forecast
[Thousands of Dollars]
[Without New Financing] [With New Financing]
Income Statements Actual Percent 50% Growth 80% Growth 50% Growth 80% Growth
2012 of Sales Forecast Basis 2013 2014 2013 2014
Net Sales 15000 100.00% (1+growth rate) x Cur. Sales 22500 40500 22500 40500
Operating Expenses -13000 86.67% .8667 x Forecasted Sales -19501 -35101 -19501 -35101
Interest -400 Initially Fixed -400 -400 -766 -1690
EBT 1600 2599 4999 2233 3708
Taxes (40%) -640 40% of EBT -1040 -1999 -893 -1483
Net Income (NI) 960 6.40% 1560 2999 1340 2225
Cash Dividends (40% of NI) -384 40% of NI -624 -1200 -536 -890
Added Retained Earnings 576 936 1800 804 1335
Balance Sheets Actual Percent Base Forecast Revised Forecast
2012 of Sales Forecast Basis 2013 2014 2013 2014
Cash & Mkt Sec 1000 6.67% .0667 x Forecasted Sales 1501 2701 1501 2701
Accounts Rec 2000 13.33% .1333 x Forecasted Sales 2999 5399 2999 5399
Inventories 2200 14.67% .1467 x Forecasted Sales 3301 5941 3301 5941
Total Current Assets 5200 34.67% 7801 14041 7801 14041
Fixed Assets, Net 6800 45.33% .4533 x Forecasted Sales 10199 18359 10199 18359
Total Assets 12000 80.00% 18000 32400 18000 32400
Accounts Pay 1600 10.67% .1067 x Forecasted Sales 2401 4321 2401 4321
Bank Loan 1800 1800 1800 1800 1800
Acc Liab 1200 8.00% .0800 x Forecasted Sales 1800 3240 1800 3240
Total Current Liab 4600 6001 9361 6001 9361
Additional Funds Needed (AFN) 3664 12903 132 596
Long-Term Debt (New) 0 0 0 3664 12903
Long-Term Debt (Old) 2200 2200 2200 2200 2200
Common Stock 2400 2400 2400 2400 2400
Retained Earnings 2800 [+ Inc. in Forecasted RE] 3736 5535 3604 4939
Total Iiab & Equity 12000 18000 32400 18000 32400
[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.]
Statement of Cash Flows Base Forecast Revised Forecast
2013 2014 2013 2014
Net Income 1560 2999 1340 2225
Inc. in A/R -999 -2399 -999 -2399
Inc. in Inv. -1101 -2641 -1101 -2641
Inc. in A/P 801 1921 801 1921
Inc. in Acc. Liab. 600 1440 600 1440
CF from Operations 860 1320 640 546
Inc. in Fixed Assets, Net -3399 -8159 -3399 -8159
CF from Investments -3399 -8159 -3399 -8159
Inc. in Bank Loan 0 0 0 0
Inc. in Long-Term Debt (New) 0 0 3664 9240
Inc. in Common Stock 0 0 0 0
