3 Statement Model - Blank
Table of Contents
3 Statement Model
Notes
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© Corporate Finance Institute. All rights reserved. Historical --> Forecast -->
3 Statement Model
USD millions, except per share data 2018 2019 2020 2021 2022 2023
Balance Sheet Check OK OK OK OK OK OK
Please complete the forecast model for year 2021-2023 based on the historical financial information and the provided assumptions.
Use the completed model to answer the questions 1-7 in this skill assessment.
Assumptions & Drivers
Days in Period 365 365 365 365 365 365 Here are some useful formulas for the three
statements calculations:
Income Statement
Sales YoY Growth N/A 6.5% 7.4% 6.9% 6.9% 6.9% Accounts Receivable Days = Accounts
Receivable / Revenue x 365
Gross Margin 53.2% 56.5% 57.4% 55.7% 55.7% 55.7%
Depreciation and Amortization Expense (% of Revenue) 3.6% 3.2% 3.1% 3.3% 3.3% 3.3% Inventory Days = Inventory / COGS x 365
General and Administration Expense (% of Revenue) 7.2% 7.4% 6.6% 7.1% 7.1% 7.1%
Marketing and Promotion Expense (Fixed Cost) 15,750 17,801 20,656 18,069 19,876 21,863 Accounts Payable Days = Accounts Payable /
Other Operating Expenses (% of Revenue) 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% COGS x 365
Long-term Debt Interest (% of Average Debt) 6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
Capital Asset Turnover = Revenue / End of
Tax Rate (% of Income Before Taxes) 34.7% 24.3% 15.3% 24.8% 24.8% 24.8%
Period PP&E
Balance Sheet Operating Cash Flow = Net Income + All Non-
Capital Asset Turnover Ratio 4.23 4.26 4.40 4.29 4.29 4.29 Cash Expenses + Net Increase in Working
Receivable Days (Sales Basis) 57 59 58 58 58 58 Capital
Inventory Days (COGS Basis) 69 74 74 72 72 72
Payable Days (COGS Basis) 96 102 102 100 100 100 (Note that an increase in current assets causes
a reduction in cash, while an increase in current
Other Current Liabilities (% of Revenue) 1.3% 1.0% 0.6% 1.0% 1.0% 1.0%
liabilities cases an increase in cash.)
Long-term Debt 13,400 13,400 13,400 20,000 25,000 28,000
Common Share Capital 5,110 5,110 5,110 5,110 5,110 5,110
Dividend Payout Ratio 83.2% 55.8% 33.7% 57.5% 57.5% 57.5%
NOTE: Calculate PP&E ending balance based on capital asset turnover ratio
Income Statement
Revenues 54,553 58,088 62,368
Cost of Goods Sold 25,541 25,297 26,558
Gross Profit 29,012 32,791 35,810
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Operating Expenses
Depreciation and Amortization 1,983 1,878 1,948
General and Administration 3,942 4,302 4,131
Marketing and Promotion 15,750 17,801 20,656
Other Operating Expenses 1,182 1,294 1,357
Total Operating Expenses 22,857 25,275 28,092
EBIT (Operating Profit) 6,155 7,516 7,717
Interest 831 831 831
Income Before Taxes 5,324 6,685 6,886
Taxes 1,850 1,627 1,052
Net Income 3,474 5,058 5,834
Common Dividends 2,889 2,820 1,964
Balance Sheet
ASSETS
Current Assets
Cash 3,544 3,965 6,806
Accounts Receivable 8,499 9,430 9,863
Inventories 4,803 5,153 5,384
Total Current Assets 16,845 18,548 22,054
Non-Current Assets
Property Plant and Equipment 12,906 13,649 14,187
TOTAL ASSETS 29,751 32,196 36,241
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable 6,701 7,038 7,422
Other Current Liabilities 729 599 389
Total Current Liabilities 7,430 7,637 7,811
Non-Current Liabilities
Long-term Debt 13,400 13,400 13,400
Shareholder's Equity
Common Stock and Additional Paid-In Capital 5,110 5,110 5,110
Retained Earnings 3,812 6,049 9,920
Total Shareholders' Equity 8,922 11,160 15,030
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 29,751 32,196 36,241
Check 0.000 0.000 0.000 0.000 0.000 0.000
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Cash Flow Statement
Cash Flows from Operating Activities
Net Income 3,474 5,058 5,834
Depreciation 1,983 1,878 1,948
Changes in Net Working Capital
Accounts Receivables (858) (931) (434)
Inventories (315) (350) (231)
Accounts Payables 328 337 384
Other Current Liabilities 34 (130) (210)
Net Cash Provided by Operating Activities 4,646 5,862 7,291
Investing Activities
Net Addition to PP&E (2,013) (2,620) (2,486)
Cash Flows from Investing Activities (2,013) (2,620) (2,486)
Financing Activities
Issuance of Common Stock - - -
Payment of Dividends (2,889) (2,820) (1,964)
Net Addition to Long-term Debt - - -
Cash Flows from Financing Activities (2,889) (2,820) (1,964)
Increase/(Decrease) in Cash and Equivalents (256) 421 2,841
Cash and Equivalents, Beginning of the Year 3,800 3,544 3,965
Cash and Equivalents, End of the Year 3,544 3,965 6,806
Supporting Schedules
Property Plant and Equipment (PP&E)
Net PP&E
Beginning of Period 12,876 12,906 13,649
Capital Expenditures/Additions (Disposals) 2,013 2,620 2,486
Depreciation Expense 1,983 1,878 1,948
Net PP&E, End of Period 12,906 13,649 14,187
Retained Earnings (RE)
Beginning of Period 3,227 3,812 6,049
Net Income 3,474 5,058 5,834
Dividends 2,889 2,820 1,964
RE, End of Period 3,812 6,049 9,920
© Management Development Associates (NA) Inc. - 21317
Long-term Debt
Beginning of Period 13,400 13,400 13,400
Additions (Repayments) - - -
LTD, End of Period 13,400 13,400 13,400
Long-term Debt Interest 831 831 831
Total Interest 831 831 831
© Management Development Associates (NA) Inc. - 21317
