Balance Sheet

2002
(in million of rupiahs)

a.
b.
c.
d.

e.
f.

AKTIVA
Cash & Sec Rp20
Acc. ReceivableRp240
InventoriesRp240
Total CA Rp500

Net Fixed AssestsRp500

Total Assets Rp1.000

PASIVA
g. Acc. Pay & Accruals Rp100
h.
Notes Payable Rp100
i.
Total CL Rp200
j.
k.
l.
m.

L-T Debt Rp100

Common Stock Rp500
Retained Earnings Rp200
Total Claims Rp1.000

Income Statement
2002
(in million of rupiahs)
a.
b.
c.
d.

Sales
VC
FC
EBIT

e.

Interest f.
EBT

60%

Rp2.000
Rp1.200
Rp700
Rp100
Rp16
Rp84

g.
h.

Taxes
Net Income

40%

Rp34
Rp50

i.
j.

Dividends
Add'n to RE

30%

Rp15
Rp35

Key Assumptions
1. Operating at full capacity in 2002
2. Each type of asset grows proportionally with sales
3. Payables and accruals grow proportionally with sales
4. 2002 Profit Margin (3%) and Payout (40%) will be maintained
Profit Margin (M) 3,00%
Dividend (d) 40%
Retantion Rate (RR) 60%
5. Sales are expected to increase by Rp. 500 million (%S = 30%)
%S 30%
S Rp600
6. Any external funds needed will be raised as debt, 40% Notes Payable and 60% L-T Debt
Notes Payable 40%
L-T Debt 60%

4. Additional Funds Needed (AFN) of 2003

5. Operating Capital (OC) of 2002 & 2003
6. Expected FCF (Free Cash Flow) to be generated in 2003

SOAL
1. Additional Funds Needed (AFN) of 2002
2. Forecasted Income Statement (2003)
3. Forecasted Balance Sheet (2003)
4. Additional Funds Needed (AFN) of 2003
5. Operating Capital (OC) of 2002 & 2003

JAWAB
1. Additional Funds Needed (AFN) of 2002
AFN = (A*/S0)S - (L*/S0)S - M(S1)(RR)
=
Rp223,2
2. Forecasted Income Statement (2003)

a.
b.
c.
d.

2002
Sales Rp2.000
VC Rp1.200
FC Rp700
EBIT Rp100

Forecast
Basis
1,30
0,60
0,35

Forecast
2003
Rp2.600
Rp1.560
Rp910
Rp130

e.
f.

Interest Rp16
EBT Rp84

g.
h.

TaxesRp34
Net Income Rp50

40%

Rp46
Rp68

i.
j.

DividendsRp15
Add'n to RE Rp35

30%

Rp20,5
Rp48

a.
b.
c.
d.

e.
f.

Rp16
Rp114

2002
Cash & Sec Rp20
Acc. ReceivableRp240
InventoriesRp240
Total CA Rp500

Net Fixed AssestsRp500

Total Assets Rp1.000

3. Forecasted Balance Sheet (2003)

ASSETS (Aktiva)
Forecast
1st Pass
Basis
2003
0,01
Rp26
0,12
Rp312
0,12
Rp312
Rp650

0,25

Rp650
Rp1.300

L
I
A
B
I
L
I
T
I
E
S
a
n
d
E
Q
U
I
T
Y

(
P
a
s
i
v
a
)

g.
h.
i.
j.
k.
l.
m.

Forecast
Basis
0,05

2002
Acc. Pay & Accruals Rp100
Notes Payable Rp100
Total CL Rp200
L-T Debt Rp100
Common Stock Rp500
Retained Earnings Rp200
Total Claims Rp1.000

Rp48

1st Pass
2003
Rp130
Rp100
Rp230
Rp100
Rp500
Rp248
Rp1.078

4. Additional Funds Needed (AFN) of 2003

a.
c.

b.

d.
Ket
e.

f.

Required increase in assets = Rp300

Spontaneous increase in liabilities = Rp30
Increase in retained earnings = Rp48
(a-b-c) Total AFN = Rp222
Additonal N/P =
N/P
x
Tot. AFN
=
40%
x
Rp222
=
Rp88,85
Additional L-T Debt = L-T Debt
x
Tot. AFN
=
60%
x
Rp222
=
Rp133,27

5. Operating Capital (OC) of 2002 & 2003

ASSETS (Aktiva)

a.
b.
c.
d.

e.
f.

2002
Cash & Sec Rp20
Acc. ReceivableRp240
InventoriesRp240
Total CA Rp500

Net Fixed AssestsRp500

Total Assets Rp1.000

Forecast
Basis
0,01
0,12
0,12

1st Pass
2003
Rp26
+
Rp312
+
Rp312
+
Rp650

0,25

+
Rp650
Rp1.300

AFN

2nd Pass
2003
Rp26
Rp312
Rp312
Rp650

Rp650
Rp1.300

LIABILITIES and EQUITY (Pasiva)

g.
h.
i.
j.
k.
l.
m.

2002
Acc. Pay & Accruals Rp100
Notes Payable Rp100
Total CL Rp200
L-T Debt Rp100
Common Stock Rp500
Retained Earnings Rp200
Total Claims Rp1.000

Ket
1. Operating Capital (OC) of 2002
a.
NOWC = Tot. CA - AP/Accruals
=
Rp400
b.
OC (2002) = NOWC + Net FA
=
Rp900
2. Operating Capital (OC) of 2003
a.
NOWC = Tot. CA - AP/Accruals
=
Rp520
b.
OC (2003) = NOWC + Net FA
=
Rp1.170
3.

Net Invest. in OC = (OC_2003) - (OC_2002)

=
Rp270

Forecast 1st Pass

2nd Pass
AFN
Basis
2003
2003
0,05
Rp130
+
Rp130

Rp100
+ Rp88,85 Rp189
Rp230
Rp319

+ Rp133,27 Rp233
Rp100
+
Rp500
Rp500
+
Rp248
Rp248
Rp1.078
Rp1.300

6. Expected FCF (Free Cash Flow) to be generated in 2003

a. NOPAT = EBIT x (1-T)
= Rp130 x
60%
= Rp78
b.
FCF = NOPAT - Net Invest. In OC
= Rp78 Rp270
=
(Rp192)