INCOME STATEMENTS

Sales
Costs except depreciation
Depreciation
Total operating costs
EBIT
Less interest (INT)
Earnings before taxes (EBT)
Taxes (40%)
Income before pref. dividends
Preferred dividends
Net income for common (NI)
Dividends
to common
(DIVs)
Add.
to retained
earnings:
(NI DIVs)
Shares of common stock
Earnings per share (EPS)
Dividends per share (DPS)
Price per share (P)

2009
2,850.00
2,497.00
90.00
2,587.00
263.00
60.00
203.00
81.20
121.80
4.00
117.80
53.00
64.80
50.00
2.36
1.06
26.00

2010 BALANCE SHEETS

Assets
3,000.00 Cash
2,616.20 ST Investments
100.00 Accounts receivable
2,716.20 Inventories
283.80 Total current assets
88.00 Net plant and equip.
195.80 Total assets
78.32
117.48 Liabilities and equity
4.00 Accounts payable
113.48 Accruals
Notes payable
57.50 Total current liab.
Long-term bonds
55.98 Total liabilities
50.00 Preferred stock
2.27 Common stock
1.15 Retained earnings
23.00 Total common equity
Total liab. & equity

2009
15.00
65.00
315.00
415.00
810.00
870.00
1,680.00

30.00
130.00
60.00
220.00
580.00
800.00
40.00
130.00
710.00
840.00
1,680.00

2010
9.98
0.00
375.00
615.00
999.98
1,000.00
1,999.98

60.00
140.00
110.00
310.00
754.00
1,064.00
40.00
130.00
765.98
895.98
1,999.98

S0
g
S1
S
A0*
A0* / S0
L0*
L0* /S0
Profit margin (M)
Payout ratio (POR)
AFN

Last year's sales, i.e., 2010 sales

Forecasted growth rate in sales
Coming year's sales, i.e., 2011 sales = S0 (1 + g)
Change in sales = S1 S0 = S
Assets that must increase to support the increase in sales
Required assets per dollar of sales
Last year's spontaneous assets, i.e., payables + accruals
Spontaneous liabilities per dollar of sales
2010 profit margin = net income/sales
Last year's dividends / net income = % of income paid out
=(A0*/S0)S - (L0*/S0)S S1M(1-POR)

3,000.00
10.00%
3,300.00
300.00
1,999.98
66.7%
200.00
7%
3.8%
50.7%
118.42

INCOME STATEMENTS
Sales
Costs except depreciation
Depreciation
Total operating costs
EBIT
Less interest (INT)
Earnings before taxes (EBT)
Taxes (40%)
Income before pref. dividends
Preferred dividends
Net income for common (NI)
Dividends
to common
(DIVs)
Add.
to retained
earnings:
(NI DIVs)
Shares of common stock
Earnings per share (EPS)
Dividends per share (DPS)
Price per share (P)

2009
2,850.00
2,497.00
90.00
2,587.00
263.00
60.00
203.00
81.20
121.80
4.00
117.80
53.00
64.80
50.00
2.36
1.06
26.00

2010 BALANCE SHEETS

Assets
3,000.00 Cash
2,616.20 ST Investments
100.00 Accounts receivable
2,716.20 Inventories
283.80 Total current assets
88.00 Net plant and equip.
195.80 Total assets
78.32
117.48 Liabilities and equity
4.00 Accounts payable
113.48 Accruals
Notes payable
57.50 Total current liab.
Long-term bonds
55.98 Total liabilities
50.00 Preferred stock
2.27 Common stock
1.15 Retained earnings
23.00 Total common equity
Total liab. & equity
Investor supplied capital

2009
15.00
65.00
315.00
415.00
810.00
870.00
1,680.00

30.00
130.00
60.00
220.00
580.00
800.00
40.00
130.00
710.00
840.00
1,680.00
1,520.00

2010 Inputs
Operating Ratios:
9.98 Sales growth rate
0.00 Op costs except depr'n / Sales
375.00 Depr'n / Net plant & equip.
615.00 Cash / Sales
999.98 Accounts Rec. / Sales
1,000.00 Inventory / Sales
1,999.98 Net plant & equip. / Sales
Accounts Pay. / Sales
Accruals / Sales
60.00 Tax rate:
140.00 Financing Data:
110.00 Notes payable/Investor-sup cap
310.00 LT bonds/Investor-sup capital
754.00 Pref. stock/Investor-sup cap.
1,064.00 Comm equity/Investor-sup cap
40.00 Interest rate on notes payable
130.00 Interest rate on L-T bonds
765.98 Dividend rate on pfd stock
895.98 Target dividend payout ratio
1,999.98
1,799.98

10.00%
87.21%
10.00%
0.33%
12.50%
20.50%
33.33%
2.00%
4.67%
40.00%
6.11%
41.89%
2.22%
49.78%
9.00%
11.00%
10.00%
50.67%

PROJECTED INCOME STATEMENTS

Sales
Costs except depreciation
Depreciation
Total operating costs
EBIT
Less interest (INT)
Earnings before taxes (EBT)
Taxes (40%)
Income before pref. dividends
Preferred dividends
Net income for common (NI)
Shares of common stock
Dividend per share
Dividends
to common
(DIVs)
Add. to retained
earnings:
(NI DIVs)

2011
3,300.00
2877.82
110
2987.82
312.18
92.84
219.34
87.736
131.60
4
127.60
50
1.242
62.1
65.50

PROJECTED BALANCE SHEETS

Assets
Cash
ST Investments
Accounts receivable
Inventories
Total current assets
Net plant and equip.
Total assets
Liabilities and equity
Accounts payable
Accruals
Notes payable
Total current liab.
Long-term bonds
Total liabilities
Preferred stock
Common stock
Retained earnings
Total common equity
Total liab. & equity
Required assets
Specified sources of financing
AFN
Required additional notes payable
Additional shortterm investment

10.978
0
412.5
676.5
1100.0
1100
2200.0

66
154
224.494
444.494
754.00
1198.5
40.00
130.00
831.48
961.48
2200.0
2200.0
2,085.48
114.494
114.494
0.000