Chemalite case study income statement

Sheet1

Chemalite, Inc. Chemalite, Inc.

Balance Sheet Pro Forma Balance Sheet

Dec-03 December 30

Assets (Six Operating Months) (Full Year) Assumption 2004 2005 2006

Cash $ 113,000 21% 181,000 Per CFS 331,266 587,753 908,241

Accounts receivable 69,500 13% $ 139,000 % of Sales 9.2% 173,685 217,025 271,179 Days sales outstanding. 10.9 33.62

Inventories 55,000 10% 55,000 Constant 137,448 171,746 214,602 COGS/Inventory 3.55 102.95

Total current assets $ 237,500 44% 375,000 $ 375,000 642,400 976,524 1,394,022

Machinery (net) 201,875 37% 191,250 Full Depreciation 170,000 148,750 127,500

Patent 100,000 19% 100,000 Full Amortation at beginning of year 75,000 50,000 25,000

Total assets $ 539,375 100% 666,250 887,400 1,175,274 1,546,522

Liabilities

Total liabilities $ - 0 0% 0 Bank loan paid off - 0 - 0 - 0

Equity

Common stock $ 500,000 93% 500,000 No additional stock 500,000 500,000 500,000 No additional stock

Retained earnings 39,375 7% 166,250 Net Income 387,400 675,274 1,046,522 no dividends paid

Total equity $ 539,375 100% $ 666,250 887,400 1,175,274 1,546,522

Total L&E $ 539,375 100% $ 666,250 887,400 1,175,274 1,546,522

- 0 - 0 - 0 External Financing Needed

Chemalite, Inc. Chemalite, Inc. Chemalite, Inc.

Income Statement Income Statement Pro Forma Income Statement

Year Ending Dec-03 Year Ending Dec-03 Year Ending December 30 Assumption

(Six Operating Months) (Full Year) 2,004 2,005 2,006

Sales $ 754,500 100% $ 1,509,000 100% 1,885,542 2,356,043 2,943,949 Grow sales at 24.9% calculated Sust Growth Ratio

Less: Expenses (cash)

Advertising 22,500 3% 45,000 3% 56,229 70,260 87,792 main status quo spending

Manufacturing 350,000 46% 700,000 46% 874,672 1,092,929 1,365,649

Corporate 80,000 11% 160,000 11% 199,925 249,812 312,148

Interest 750 0% 1,500 0% - 0 - 0 - 0 no debt due to cash on hand

Materials 195,000 26% 390,000 26% 487,317 608,918 760,862

Prototypes 23,750 3% - 0 0% - 0 - 0 - 0

Legal 7,500 1% - 0 0% - 0 - 0 - 0

679,500 90% 1,296,500 86% 1,618,143 2,021,919 2,526,451 Total cash expenses

Expenses (noncash)

Depreciation 10,625 1% 21,250 1% 21,250 21,250 21,250

Amortization 25,000 3% 25,000 2% 25,000 25,000 25,000

35,625 5% 46,250 3% 46,250 46,250 46,250 Total Expenses Non Cash

Net Income $ 39,375 5% 166,250 11% 221,150 287,874 371,248

Chemalite, Inc. Chemalite, Inc.

Cash Flow Statement Pro Forma Cash Flow Statement

Year June-04 Year Ending December 30

(Full Year) $ 2,004 $ 2,005 $ 2,006

Cash from operations

Net Income $ 166,250 $ 221,150 $ 287,874 $ 371,248

Amortization 25000 $ 25,000 $ 25,000 $ 25,000

Depreciation 21250 $ 21,250 $ 21,250 $ 21,250

Prototype 23750 $ - 0 $ - 0 $ - 0

A/R (139,000) $ (34,685) $ (43,340) $ (54,154)

Inventory (55,000) $ (82,448) $ (34,298) $ (42,856)

42,250 $ 150,266 $ 256,487 $ 320,488

Cash from investments

Machines (212,500) 212,500 $ - 0 $ - 0 $ - 0

Prototype (23,750) $ - 0 $ - 0 $ - 0

(236,250) $ - 0 $ - 0 $ - 0

Net Change (194,000) $ 150,266 $ 256,487 $ 320,488

Beginning Cash 375000 $ 181,000 $ 331,266 $ 587,753

Ending Cash $ 181,000 $ 331,266 $ 587,753 $ 908,241

ROE (net income / equity) ROE 25.0%

RR ( inverse of divident ratio) RR 1

Dvidend R (net earning / dividend) DR 0

Sustainable growth rate (ROE x RR) SGR 25.0%

Applied Sciences

Architecture and Design

Biology

Business & Finance

Chemistry

Computer Science

Geography

Geology

Education

Engineering

English

Environmental science

Spanish

Government

History

Human Resource Management

Information Systems

Law

Literature

Mathematics

Nursing

Physics

Political Science

Psychology

Reading

Science

Social Science

Home

Blog

Archive

Contact

google+twitterfacebook

Copyright © 2019 HomeworkMarket.com