MINI CASE
Pharma Biotech Corporation
[$ Thousands]
Sales Growth Rates 50% 80%
Income Statements Actual Percent
2016 of Sales Forecast Basis 2017 2018
Net Sales 15000 100.00% (1+growth rate) x Sales 22500 40500
Operating Expenses -13000 86.67% .8667 x Forecast Sales -19501 -35101
Interest -400 Initially Fixed -400 -400
EBT 1600 2599 4999
Taxes (40%) -640 40% of EBT -1040 -1999
Net Income (NI) 960 6.40% 1560 2999
Accounts Rec 2000 13.33% .1333 x Forecast Sales 2999 5399
Inventories 2200 14.67% .1467 x Forecast Sales 3301 5941
Total Current Assets 5200 7801 14041
Fixed Assets, Net 6800 45.33% .4533 x Forecast Sales 10199 18359
Total Assets 12000 18000 32400
Pharma Biotech Corporation
Statement of Cash Flows
2017 2018
Net Income 1560 2999
Change in A/R -999 -2399
Change in Inv. -1101 -2641
Change in A/P 801 1921
Change in Acc. Liab. 600 1440
CF from Operations 860 1320
CF from Investments -3399 -8159
Change in Bank Loan 0 0
Change in Common Stock 0 0
Payment of Cash Dividends -624 -1200
CF from Financing -624 -1200
Ending Cash Before Borrowing -2163 -6539
Target Ending Cash 1501 2701
Additional Funds Needed (AFN) 3664 9240
Cumulative AFN 3664 12903