What-If Analysis Template

What-If Model Users Guide
Input Template:
Project Costs
Segregate Capitalized and Expensed Project Costs based on the expenditure characteristics.
Include project fees
Historical Financial Information
Income Statement - Based on audited financial report data, categorize revenues and expenses into the broad categories provided.
Balance Sheet - Further, categorize assets, liabilities and equity into the appropriate balance sheet line items provided.
Operating Assumptions
Pre-Implementation and Base Year: these are darkened to illustrate that they are not inputs, but calculations for information purposes.
Income Statement Assumptions are percentage changes in the current year from the prior year.
Balance Sheet Assumptions are the assumptions percentage of total assets.
Post-Implementation:
Machinery & Equipment and Building and Plant, for all projected years, are estimated capital expenditures in whole dollars.
The following items projected years costs are constant (i.e. equal to the base year) and are direct inputs from historical data: other
controllable expenses, other accrued expenses, taxes payable, other current liabilities, long-term notes payable, deferred taxes payable,
The following items use growth percentage changes for all projected years: R&D expenses, G&A expenses, interest expense, interest
payable, notes payable, and distributions payable. The financial statements use these percentages by multiplying the prior year dollars
by one plus the growth rate input for each year. Growth is not proportionate to sales.
The following items use growth percentage changes for all projected years: selling expenses, accounts receivable, inventory, prepaid
expenses, other current assets, other noncurrent assets, accounts payable, unearned revenue, and current portion of long-term debt. The
financial statements multiply the prior year dollars by one plus the growth rate input. Further, this product is multiplied by one plus the
sales growth input for each year to vary these items proportionally with sales.
The What-If Model will allow a team the ability to model the potential financial impact of a variety of initiatives upon a companys
financial statements. This scenario, or what-if, modeling will incorporate the companys historical financial statements and five-year
projections in conjunction with inputs provided by the Quantitative Model. The historical and projected financial statements provided
by the client will serve as the models base or null state. The inputs provided by the Quantitative Model provide the variables to be
modeled with the client projections. The What-If Model will then provide expected changes in financial statements and financial
statement metrics from the base assumptions. These expected changes allow the team to target and prioritize the scenarios with the
greatest expected benefits. This prioritization will aid further discussions with management when determining further work to be
performed.
The model is segregated into four sections: inputs, calculations, statements, and analysis. Only the input section is editable. All other
sections are protected and read only. The models format does have the capacity to be modified quickly. For example, if a subject
businesss financial statements cannot be fit into the current format, the current format can be appended or changed to accommodate the
different format. Additionally, if the operating assumptions are inaccurate, they can also be altered to accommodate company-specific
assumptions. Outlined below is a description of Section One, and how particular areas operate within the section. Sections Two Four
are protected and therefore have no operational details.
Sales revenue growth percentages are used for all projected years. The financial statements use these percentages by multiplying the
prior year sales dollars by one plus the growth rate for each year (compounding).
Intangible Asset Amortization
Additional Assumptions
Client should provide their applicable tax rates, weighted average cost of capital, and interest rate on excess cash.
Further, Asset lives and additional asset information should be captured.
Section Two Calculations
Protected Sheet, Read-only Access
Section Three Financial Statements
Section Four - Analysis
Income Statement - Based on audited financial report data, categorize revenues and expenses into the broad categories provided.
Balance Sheet - Further, categorize assets, liabilities and equity into the appropriate balance sheet line items provided.
Pre-Implementation and Base Year: these are darkened to illustrate that they are not inputs, but calculations for information purposes.
Income Statement Assumptions are percentage changes in the current year from the prior year.
Machinery & Equipment and Building and Plant, for all projected years, are estimated capital expenditures in whole dollars.
The following items projected years costs are constant (i.e. equal to the base year) and are direct inputs from historical data: other
controllable expenses, other accrued expenses, taxes payable, other current liabilities, long-term notes payable, deferred taxes payable,
The following items use growth percentage changes for all projected years: R&D expenses, G&A expenses, interest expense, interest
payable, notes payable, and distributions payable. The financial statements use these percentages by multiplying the prior year dollars
by one plus the growth rate input for each year. Growth is not proportionate to sales.
The following items use growth percentage changes for all projected years: selling expenses, accounts receivable, inventory, prepaid
expenses, other current assets, other noncurrent assets, accounts payable, unearned revenue, and current portion of long-term debt. The
financial statements multiply the prior year dollars by one plus the growth rate input. Further, this product is multiplied by one plus the
sales growth input for each year to vary these items proportionally with sales.
The What-If Model will allow a team the ability to model the potential financial impact of a variety of initiatives upon a companys
financial statements. This scenario, or what-if, modeling will incorporate the companys historical financial statements and five-year
projections in conjunction with inputs provided by the Quantitative Model. The historical and projected financial statements provided
by the client will serve as the models base or null state. The inputs provided by the Quantitative Model provide the variables to be
modeled with the client projections. The What-If Model will then provide expected changes in financial statements and financial
statement metrics from the base assumptions. These expected changes allow the team to target and prioritize the scenarios with the
greatest expected benefits. This prioritization will aid further discussions with management when determining further work to be
performed.
The model is segregated into four sections: inputs, calculations, statements, and analysis. Only the input section is editable. All other
sections are protected and read only. The models format does have the capacity to be modified quickly. For example, if a subject
businesss financial statements cannot be fit into the current format, the current format can be appended or changed to accommodate the
different format. Additionally, if the operating assumptions are inaccurate, they can also be altered to accommodate company-specific
assumptions. Outlined below is a description of Section One, and how particular areas operate within the section. Sections Two Four
are protected and therefore have no operational details.
Sales revenue growth percentages are used for all projected years. The financial statements use these percentages by multiplying the
prior year sales dollars by one plus the growth rate for each year (compounding).
Client should provide their applicable tax rates, weighted average cost of capital, and interest rate on excess cash.
Maximize ERP Project Financial Model Input - 246523296.xls.ms_office
MODEL INPUT
I
Project 2000 2001 2002 2003 2004
Project Costs-Capitalized 5 0 0 0 0
Project Costs-Expensed 1 1 1 1 1
Project Fees 0.5 0.5 0.5 0.5 0.5
Date (MM/DD/YYYY) 7/1/1999
II
Historical Financial Information Pre-Implementation Base Year*
Income Statement 1996 1997 1998 1999
Sales Revenue 111,211
Net Sales Revenue 111,211
Cost of Sales 60,001
Selling Expenses 0
R&D Expenses 0
General and Administrative 7,518
Total Non-Sales Expenses 7,518
Depreciation 4,884
Amortization 0
Other Controllable Expenses 250
Interest Expense 647
Interest Income 0
Miscellaneous Income 0
Income Tax 32,631
Preferred Dividends 0
* Current or Post-Implementation Year
STRICTLY CONFIDENTIAL --
Unaudited Preliminary Draft
For discussion and review purposes only
5 of 18 10/5/2014, 6:39 PM
MODEL INPUT
Historical Financial Information Pre-Implementation Base Year*
Balance Sheet 1996 1997 1998 1999
Current Assets
Cash 1,652
Accounts Receivable 6,860
Inventory 5,472
Prepaid Expenses 875
Other Current Assets 4,790
Noncurrent Assets
Machinery and Equipment 0
Building and Plant 61,962
Accumulated Depreciation 0
Deferred Income Tax Asset 0
Other Noncurrent Assets 2,534
Intangible Assets
Deferred Fin./ License/Startup 0
Goodwill 0
Other Intangibles 0
Accumulated Amortization 0
Current Liabilities
Interest Payable 0
Accounts Payable 0 7,677
Other Accrued Expenses 4,445
Unearned Revenue 0
Notes Payable 4,109
Current Portion of Long Term Debt 0
Taxes Payable 2,359
Distributions Payable 0
Other Current Liabilities 8,153
Noncurrent Liabilities
Long-Term Notes 10,901
Deferred Income Tax Liability 10,939
Deferred Taxes Payable 770
Shareholder Equity
Retained Earnings 49,365
Common Equity 2,822
Additional Paid-in Capital 0
Preferred Stock 668
Treasury Stock (16,977)
Other Equity (1,086)
Number of Shares - Common Stock 2,428
6 of 18 10/5/2014, 6:39 PM
MODEL INPUT
III Pre-Implementation Base Year* Post-Implementation Growth
Operating Assumptions 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Income Statement Assumptions
Sales Revenue #DIV/0! #DIV/0! #DIV/0! 5.00% 5.00% 5.00% 5.00% 5.00%
Other Controllable Expenses 0.00% 250 250 250 250 250 250
R&D Expenses #DIV/0! #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
Selling Expenses #DIV/0! #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
General and Administrative #DIV/0! #DIV/0! #DIV/0! 0.00% 0.00% 0.00% 0.00% 0.00%
Projected Expenses
Interest Expense 0 0 0 647 0.0% 0.0% 0.0% 0.0% 0.0%
Pre-Implementation Post-Implementation Percentages
Gross Margin Percentage N/A N/A N/A 46.0% 46.0% 46.0% 46.0% 46.0% 46.0%
Cost of Sales (% Rev) #DIV/0! #DIV/0! #DIV/0! 54% 54.0% 54.0% 54.0% 54.0% 54.0%
7 of 18 10/5/2014, 6:39 PM
MODEL INPUT
Pre-Implementation Base Year* Post-Implementation Growth
Operating Assumptions 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Balance Sheet Items
Current Assets
Accounts Receivable #DIV/0! #DIV/0! #DIV/0! 8% 0% 0% 0% 0% 0%
Inventory #DIV/0! #DIV/0! #DIV/0! 7% 0% 0% 0% 0% 0%
Prepaid Expenses #DIV/0! #DIV/0! #DIV/0! 1% 0% 0% 0% 0% 0%
Other Current Assets #DIV/0! #DIV/0! #DIV/0! 6% 0% 0% 0% 0% 0%
Noncurrent Assets
Capital Expenditures:
Machinery and Equipment 0 0 #DIV/0! 0% $0.00 $0.00 $0.00 $0.00 $0.00
Building and Plant 0 0 0 74% $0.00 $0.00 $0.00 $0.00 $0.00
Other Noncurrent Assets #DIV/0! #DIV/0! #DIV/0! 3% 0% 0% 0% 0% 0%
Current Liabilities
Interest Payable 0 0 0 0 0% 0% 0% 0% 0%
Accounts Payable #DIV/0! #DIV/0! #DIV/0! 7% 0% 0% 0% 0% 0%
Other Accrued Expenses 0 0 0 4,445 0% 0% 0% 0% 0%
Unearned Revenue #DIV/0! #DIV/0! #DIV/0! 0% 0% 0% 0% 0% 0%
Notes Payable 0 0 0 4,109 0% 0% 0% 0% 0%
Current Portion of Long Term Debt #DIV/0! #DIV/0! #DIV/0! 0% 0% 0% 0% 0% 0%
Taxes Payable 0 0 0 2,359 0% 0% 0% 0% 0%
Distributions Payable 0 0 0 0 0% 0% 0% 0% 0%
Other Current Liabilities 0 0 0 8,153 0% 0% 0% 0% 0%
Long-Term Notes Payable 0 0 0 10,901 0% 0% 0% 0% 0%
Deferred Taxes Payable 0 0 0 770 0% 0% 0% 0% 0%
Equity Assumptions
Preferred Stock 0 0 0 668 668 668 668 668 668
Treasury Stock 0 0 0 (16,977) (16,977) (16,977) (16,977) (16,977) (16,977)
Cash Flow Assumptions
Preferred Stock Dividends 6%
Dividend Distributions to Common Shareholders
Days in Year 365
8 of 18 10/5/2014, 6:39 PM
MODEL INPUT
IV
Intangible Assets Amortization Percent
Period Amortizable
Deferred Fin./ License/Startup 10
Goodwill 40
Other Intangibles 5
Project Costs-Capitalized 10
Project Fees 10 100.00%
V
Additional Assumptions
Effective Federal Income Tax Rate 86.07%
Weighted Average Cost of Capital 10.00%
Effective State Income Tax Rate 0.00%
Interest Income Rate on Excess Cash Balances 0.00%
Asset Lives
Machinery and Equipment 7
Building and Plant 15
Fair Market Value of Assets in Excess of Book:
Inventory 0
Fixed Assets 0
Current Liabilities Assumed 0
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Maximize ERP Project Financial Model Calculations - 246523296.xls.ms_office
CALCULATIONS
Book Depreciation Existing 2000 2001 2002 2003 2004
Existing Basis Life Basis
Machinery and Equipment 7 0 0 0 0 0 0
Building and Plant 12.70 61,962 4,879 4,879 4,879 4,879 4,879
Total 4,879 4,879 4,879 4,879 4,879
Incremental Capital Expenditures
2000 Machinery and Equipment 0 0 0 0 0
2000 Building and Plant 0 0 0 0 0
0 0 0 0 0
2001 Machinery and Equipment 0 0 0 0
2001 Building and Plant 0 0 0 0
0 0 0 0
2002 Machinery and Equipment 0 0 0
2002 Building and Plant 0 0 0
0 0 0
2003 Machinery and Equipment 0 0
2003 Building and Plant 0 0
0 0
2004 Machinery and Equipment 0
2004 Building and Plant 0
0
Total Book Depreciation 4,879 4,879 4,879 4,879 4,879
10 of 18 10/5/2014, 6:39 PM
CALCULATIONS
Income Taxes 2000 2001 2002 2003 2004
Income from Continuing Operations 40,475 43,164 45,986 48,951 52,063
Taxable Income Before NOL 40,475 43,164 45,986 48,951 52,063
Less: NOL Utilized 0 0 0 0 0
Taxable Income 40,475 43,164 45,986 48,951 52,063
Blended
Cash Income Taxes State @ 0.00% Federal @ 86.07% 86.07% 34,837 37,151 39,581 42,132 44,810
Income Taxes, per Books 34,837 37,151 39,581 42,132 44,810
Current Year Deferred Income Tax Benefit (Expense) - Temporary Difference 0 0 0 0 0
Cumulative Deferred Income Tax Asset (Liability) 0 0 0 0 0
Net Operating Loss (NOL), Beginning Balance 0 0 0 0 0
Additional NOL Created 0 0 0 0 0
NOL Utilized 0 0 0 0 0
NOL, Ending Balance 0 0 0 0 0
11 of 18 10/5/2014, 6:39 PM
CALCULATIONS
Intangible Asset Amortization Existing 2000 2001 2002 2003 2004
Life Basis
Lic. Agr. / Def. Fin. 10
Beginning Balance 0 0 0 0 0
Amortization 0 0 0 0 0
Ending Balance 0 0 0 0 0
Goodwill 40
Incremental Project Expenditures
Project Costs-Capitalized 10
Project Fees 10
2000 Project Costs-Capitalized 0 1 1 1 1
2000 Project Fees 0 0 0 0 0
0 1 1 1 1
2001 Project Costs-Capitalized 0 0 0 0
2001 Project Fees 0 0 0 0
0 0 0 0
2002 Project Costs-Capitalized 0 0 0
2002 Project Fees 0 0 0
0 0 0
2003 Project Costs-Capitalized 0 0
2003 Project Fees 0 0
0 0
2004 Project Costs-Capitalized 0
2004 Project Fees 0
0
Other Intangibles 5
Total Amortization 0 1 1 1 1
12 of 18 10/5/2014, 6:39 PM
CALCULATIONS
Pre-Implementation Post-Implementation
1996 1997 1998 1999 2000 2001 2002 2003 2004
SVA
Income From Continuing Operations 0 0 0 37,911 40,475 43,164 45,986 48,951 52,063
Less: W.A.C.C. x (Total Noncurrent Assets + Working Capital) 0 0 0 5,740 6,300 6,897 7,534 8,212 8,933
SVA 0 0 0 32,171 34,175 36,266 38,453 40,739 43,130
NPV & IRR
Net Cash Flow 9,829 10,177 10,536 10,914 11,310
Less: Total Project Costs 7 2 2 2 2
Cash Outflow/Inflow 9,823 10,175 10,535 10,912 11,309
13 of 18 10/5/2014, 6:39 PM
Maximize ERP Project Financial Model Statements - 246523296.xls.ms_office
BALANCE SHEET (Million of Dollars)
ASSETS 1996 1997 1998 1999 2000 2001 2002 2003 2004
Current Assets
Cash 0 0 0 1,652 11,481 21,658 32,194 43,108 54,418
Accounts Receivable 0 0 0 6,860 7,203 7,563 7,941 8,338 8,755
Inventory 0 0 0 5,472 5,746 6,033 6,335 6,651 6,984
Prepaid Expenses 0 0 0 875 919 965 1,013 1,064 1,117
Other Current Assets 0 0 0 4,790 5,030 5,281 5,545 5,822 6,113
Total Current Assets 0 0 0 19,649 30,378 41,500 53,028 64,983 77,387
Noncurrent Assets
Machinery and Equipment 0 0 0 0 0 0 0 0 0
Building and Plant 0 0 0 61,962 61,962 61,962 61,962 61,962 61,962
Less: Accumulated Depreciation 0 0 0 0 (4,879) (9,758) (14,637) (19,516) (24,394)
Net Fixed Assets 0 0 0 61,962 57,083 52,204 47,325 42,446 37,568
Deferred Income Tax Asset 0 0 0 0 0 0 0 0 0
Other Noncurrent Assets 0 0 0 2,534 2,661 2,794 2,933 3,080 3,234
Intangible Assets
Deferred Fin./ License/Startup 0 0 0 0 0 0 0 0 0
Goodwill 0 0 0 0 0 0 0 0 0
Project Costs-Capitalized 5 5 5 5 5
Project Fees 1 1 2 2 3
Other Intangibles 0 0 0 0 0 0 0 0 0
Less: Accumulated Amortization (0) (1) (1) (2) (3)
Total Intangible Assets 0 0 0 0 5 5 5 5 5
Total Noncurrent Assets 0 0 0 64,496 59,749 55,003 50,264 45,531 40,806
Total Assets 0 0 0 84,145 90,127 96,503 103,292 110,515 118,194
14 of 18 10/5/2014, 6:39 PM
BALANCE SHEET (Million of Dollars)
LIABILITIES 1996 1997 1998 1999 2000 2001 2002 2003 2004
Current Liabilities
Interest Payable 0 0 0 0 0 0 0 0 0
Accounts Payable 0 0 0 7,677 8,061 8,464 8,887 9,331 9,798
Other Accrued Expenses 0 0 0 4,445 4,445 4,445 4,445 4,445 4,445
Unearned Revenue 0 0 0 0 0 0 0 0 0
Notes Payable 0 0 0 4,109 4,109 4,109 4,109 4,109 4,109
Current Portion of Long Term Debt 0 0 0 0 0 0 0 0 0
Taxes Payable 0 0 0 2,359 2,359 2,359 2,359 2,359 2,359
Distributions Payable 0 0 0 0 0 0 0 0 0
Other Current Liabilities 0 0 0 8,153 8,153 8,153 8,153 8,153 8,153
Total Current Liabilities 0 0 0 26,743 27,127 27,530 27,953 28,397 28,864
Long-Term Notes 0 0 0 10,901 10,901 10,901 10,901 10,901 10,901
Deferred Income Tax Liability 0 0 0 10,939 10,939 10,939 10,939 10,939 10,939
Deferred Taxes Payable 0 0 0 770 770 770 770 770 770
Total Noncurrent Liabilities 0 0 0 22,610 22,610 22,610 22,610 22,610 22,610
Total Liabilities 0 0 0 49,353 49,737 50,140 50,563 51,007 51,474
SHAREHOLDERS EQUITY
Retained Earnings 0 0 0 49,365 54,963 60,936 67,302 74,080 81,293
Common Equity 0 0 0 1,736 1,736 1,736 1,736 1,736 1,736
Additional Paid in Capital 0 0 0 0 0 0 0 0 0
Preferred Stock 0 0 0 668 668 668 668 668 668
Treasury Stock 0 0 0 (16,977) (16,977) (16,977) (16,977) (16,977) (16,977)
Total Shareholders Equity 0 0 0 34,792 40,390 46,363 52,729 59,507 66,720
Total Liabilities and Shareholders Equity 0 0 0 84,145 90,127 96,503 103,292 110,515 118,194
15 of 18 10/5/2014, 6:39 PM
STATEMENT OF INCOME AND RETAINED EARNINGS (Million of Dollars)
1996 1997 1998 1999 2000 2001 2002 2003 2004
Sales Revenue 0 0 0 111,211 116,772 122,610 128,741 135,178 141,937
Net Sales Revenue 0 0 0 111,211 116,772 122,610 128,741 135,178 141,937
Cost of Sales 0 0 0 60,001 63,001 66,151 69,459 72,932 76,578
Gross Margin on Sales 0 0 0 51,210 53,771 56,459 59,282 62,246 65,358
Gross Margin Percentage N/A 46.05% 46.05% 46.05% 46.05% 46.05% 46.05%
Expense Projections '99 Forward
Project Costs-Expensed 1 1 1 1 1
R&D Expenses 0 0 0 0 0 0 0 0 0
Other Controllable Expenses 250 250 250 250 250 250
Selling Expenses 0 0 0 0 0 0 0 0 0
General and Admin Expenses 0 0 0 7,518 7,518 7,518 7,518 7,518 7,518
Total Non-Sales Expenses 0 0 0 7,768 7,769 7,769 7,769 7,769 7,769
Earnings Before Interest, Tax, Depr. and Amort. 0 0 0 43,442 46,002 48,690 51,513 54,477 57,589
Depreciation 0 0 0 4,884 4,879 4,879 4,879 4,879 4,879
Amortization 0 0 0 0 0 1 1 1 1
Total Operating Expenses 0 0 0 12,652 12,648 12,648 12,649 12,649 12,649
Earnings Before Interest and Tax (EBIT) 0 0 0 38,558 41,122 43,811 46,633 49,598 52,710
Total Interest Expense 0 0 0 647 647 647 647 647 647
Interest Income 0 0 0 0 0 0
Miscellaneous Income 0 0 0 0 0 0 0 0 0
Income from Continuing Operations 0 0 0 37,911 40,475 43,164 45,986 48,951 52,063
Provision for State & Federal Tax 0 0 0 32,631 34,837 37,151 39,581 42,132 44,810
Net Income Before Dividends 0 0 0 5,280 5,638 6,013 6,406 6,819 7,252
Preferred Dividends 0 0 0 0 40 40 40 40 40
Net Income Available to Common Shareholders 0 0 0 5,280 5,598 5,973 6,366 6,779 7,212
Retained Earnings, Beginning of Period 0 49,365 54,963 60,936 67,302 74,080
Less: Dividends (40) (40) (40) (40) (40)
Retained Earnings, End of Period 0 0 0 5,280 54,963 60,936 67,302 74,080 81,293
16 of 18 10/5/2014, 6:39 PM
CASH FLOW STATEMENT (Million of Dollars)
1996 1997 1998 1999 2000 2001 2002 2003 2004
Net Income Before Dividends 5,638 6,013 6,406 6,819 7,252
Adjustments to Reconcile Net Income to Cash from Operations
Project Costs-Capitalized (5) 0 0 0 0
Project Fees (1) (1) (1) (1) (1)
Depreciation and Amortization 4,879 4,879 4,880 4,880 4,880
Change in Accounts Receivable (343) (360) (378) (397) (417)
Change in Inventory (274) (287) (302) (317) (333)
Change in Prepaid Expenses (44) (46) (48) (51) (53)
Change in Other Current Assets (240) (251) (264) (277) (291)
Change in Total Current Assets 0 0 0 0 (900) (945) (992) (1,042) (1,094)
Change in Interest Payable 0 0 0 0 0
Change in Accounts Payable 384 403 423 444 467
Change in Current Portion of Long Term Debt 0 0 0 0 0
Accrued Expenses and Bonuses 0 0 0 0 0
Change in Customer Deposits 0 0 0 0 0
Change in Total Current Liabilities 0 0 0 0 384 403 423 444 467
Change in Other Noncurrent Assets (127) (133) (140) (147) (154)
Change in Deferred Income Tax 0 0 0 0 0
Change in Deferred Taxes Payable 0 0 0 0 0
Cash Provided (Used) by Operating Activities 0 0 0 0 9,869 10,217 10,576 10,954 11,350
Investing Activities
Capital Expenditures: 0 0 0 0 0
Cash Provided (Used) by Investing Activities 0 0 0 0 0 0 0 0 0
Financing Activities
Change in Long-Term Notes 0 0 0 0 0
Change in Notes Payable 0 0 0 0 0
Preferred Dividends (40) (40) (40) (40) (40)
Cash Provided (Used) by Financing Activities (40) (40) (40) (40) (40)
Net Cash Flow Available to Common Shareholders 0 0 0 0 9,829 10,177 10,536 10,914 11,310
Dividend Distributions to Common Shareholders 0 0 0 0 0
Net Cash Flow 0 0 0 0 9,829 10,177 10,536 10,914 11,310
Cash, Beginning Balance 1,652 11,481 21,658 32,194 43,108
Cash, Ending Balance 0 0 0 0 11,481 21,658 32,194 43,108 54,418
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Maximize ERP Project Financial Model Analyses - 246523296.xls.ms_office
ANALYSIS
Financial and Operating Ratios 1996 1997 1998 1999 Benchmark 2000 2001 2002 2003 2004
Liquidity Ratios
Current Ratio (Current Assets/Current Liabilities) 0.7 1.1 1.5 1.9 2.3 2.7
Quick Ratio (Cash, Equivalents and Accounts Receivable/Current Liabilities) 0.3 0.7 1.1 1.4 1.8 2.2
Working Capital (Current Assets Less Current Liabilities) (7,094) 3,251 13,970 25,075 36,586 48,523
Activity Ratios
Sales/Average Receivables 32.4 16.6 16.6 16.6 16.6 16.6
Days in Average Receivables 11.3 22.0 22.0 22.0 22.0 22.0
Cost of Sales/Average Inventory 21.9 11.2 11.2 11.2 11.2 11.2
Days in Average Inventory 16.6 32.5 32.5 32.5 32.5 32.5
Cost of Sales/Average Accounts Payable 15.6 8.0 8.0 8.0 8.0 8.0
Days in Average Accounts Payable 23.4 45.6 45.6 45.6 45.6 45.6
Working Capital Turnover (Net Sales Revenue/(Average Working Capital) (15.7) 35.9 14.2 6.6 4.4 3.3
Fixed Asset Turnover (Net Sales Revenue/Average Net Fixed Assets) 3.6 2.0 2.2 2.6 3.0 3.5
Asset Turnover (Net Sales Revenue/Average Total Assets) 2.6 1.3 1.3 1.3 1.3 1.2
Profitability Ratios
Net Income/Average Shareholders Equity 0.30 0.15 0.14 0.13 0.12 0.11
Growth
Sales Growth 5% 5% 5% 5% 5%
EPS 2.17 2.32 2.48 2.64 2.81 2.99
Cost
NI/Sales (Profit Margin) 5% 5% 5% 5% 5% 5%
Gross Margin 46% 46% 46% 46% 46% 46%
SG&A as a % of Sales 7% 7% 6% 6% 6% 5%
Capital
Assets/Sales #DIV/0! #DIV/0! #DIV/0! 76% 77% 79% 80% 82% 83%
SVA 0 0 0 32,171 34,175 36,266 38,453 40,739 43,130
Project
ROI #DIV/0! #DIV/0! #DIV/0! 15% 14% 13% 12% 11% 11%
NPV $39,729
IRR #NUM!
18 of 18 10/5/2014, 6:39 PM

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