MINOSO CORPORATION
Financial Statement Projections
Note: Projections are Prior to New Financing Decisions
Ch 9, Prob 6
Sales Growth Rates—-–> 20% 20% 20%
Income Statements Actual Percent Forecast Forecast Forecast
2016 of Sales Forecast Basis 2017 2018 2019
Net Sales 15000 100.0% 1.20 x Current Sales 18000.0 21600.0 25920.0
Operating Expenses –13000 86.7% .867 x Forecast Sales -15600.0 -18720.0 -22464.0
Interest* -400 Initially Held Fixed -400.0 -400.0 -400.0
EBT 1600 2000.0 2480.0 3056.0
Taxes (40%) -640 40% of EBT -800.0 -992.0 -1222.4
Balance Sheets 2016 2017 2018 2019
Surplus Cash 0 0.0 0.0 0.0
Accounts Rec 2000 13.3% .133 x Forecast Sales 2400.0 2880.0 3456.0
Inventories 2200 14.7% .147 x Forecast Sales 2640.0 3168.0 3801.6
Total Current Assets 5200 6240.0 7495.2 8994.2
MINOSO CORPORATION
Additional Funds Needed (AFN)
Note: Financial Statement Projections are Prior to New Financing Decisions
MINOSO CORPORATION
Statement of Cash Flows 2017 2018 2019
Net Income 1200.0 1488.0 1833.6
Change in A/R -400.0 -480.0 -576.0
Change in Inv. -440.0 -528.0 -633.6
Change in A/P 320.0 384.0 460.8
Change in Acc. Liab. 240.0 288.0 345.6
CF from Operations 920.0 1152.0 1430.4
Change in Fixed Assets, Net -1360.0 -1632.0 -1958.4
CF from Investments -1360.0 -1632.0 -1958.4
Change in Bank Loan 0.0 0.0 0.0
Change in Long-Term Debt 0.0 0.0 0.0
Change in Common Stock 0.0 0.0 0.0
Payment of Cash Dividends -480.0 -595.2 -733.4
CF from Financing -480.0 -595.2 -733.4
Net Cash Flow -920.0 -1075.2 -1261.4
Beginning Cash 1000.0 1200.0 1440.0
Ending Cash Before Borrowing 80.0 124.8 178.6
Target Ending Cash 1200.0 1440.0 1728.0
MINOSO CORPORATION
Financial Statement Projections
Note: Projections Assume New 10% LTD Financing
Ch 9, Prob 6
Sales Growth Rates——> 20% 20% 20%
Income Statements Actual Percent Forecast Forecast Forecast
2016 of Sales Forecast Basis 2017 2018 2019
Net Sales 15000 100.0% 1.20 x Current Sales 18000.0 21600.0 25920.0
Operating Expenses -13000 86.7% .867 x Forecast Sales -15600.0 -18720.0 -22464.0
Interest -400 10% Interest Rate** -512.0 -643.5 -798.5
EBT 1600 1888.0 2236.5 2657.5
Taxes (40%) -640 40% of EBT -755.2 -894.6 -1063.0
Net Income (NI) 960 6.4% 1132.8 1341.9 1594.5
Cash Dividends (40% of NI) -384 40% of NI -453.1 -536.8 -637.8
Balance Sheets 2016 2017 2018 2019
Fixed Assets, Net 6800 45.3% .453 x Forecast Sales 8160.0 9792.0 11750.4
Total Assets 12000 80.0% .800 x Forecast Sales 14400.0 17280.0 20736.0
Bank Loan 1800 1800.0 1800.0 1800.0
Acc Liab 1200 8.0% .080 x Forecast Sales 1440.0 1728.0 2073.6
Total Current Liab 4600 5160.0 5832.0 6638.4
New LTD Borrowing (AFN) 0 1160.3 2563.2 4256.1
Long-Term Debt (Old Loan) 2200 2200.0 2200.0 2200.0
Common Stock 2400 2400.0 2400.0 2400.0
MINOSO CORPORATION
Additional Funds Needed (AFN)
Note: Financial Statement Projections With New 10% LTD Financing
MINOSO CORPORATION
Statement of Cash Flows 2017 2018 2019
Net Income 1132.8 1341.9 1594.5
Change in A/R -400.0 -480.0 -576.0
Change in Inv. -440.0 -528.0 -633.6
Change in A/P 320.0 384.0 460.8
Change in Acc. Liab. 240.0 288.0 345.6
CF from Operations 852.8 1005.9 1191.3
CF from Investments -1360.0 -1632.0 -1958.4
Change in Bank Loan 0.0 0.0 0.0
Change in Long-Term Debt 0.0 0.0 0.0
Change in New L-T Debt 1160.3 1402.9 1692.9
Change in Common Stock 0.0 0.0 0.0
Payment of Cash Dividends -453.1 -536.8 -637.8
CF from Financing 707.2 866.1 1055.1
Net Cash Flow 200.0 240.0 288.0
Beginning Cash 1000.0 1200.0 1440.0
Ending Cash Before Borrowing 1200.0 1440.0 1728.0
Target Ending Cash 1200.0 1440.0 1728.0
Additional Funds Needed (AFN) 0.0 0.0 0.0
Cumulative AFN 0.0 0.0 0.0