Scribd
Upload
481 views7 pages

Sneakers Solution

The document contains financial projections for a company from 2012-2018 including sales, costs, expenses, cash flows, and other key metrics. It shows declining sales but increasing profitability from 2015-2017 as variable costs decrease as a percentage of sales. Cash flows are negative in 2012 and 2013 but become strongly positive from 2014 onward, with the highest cash flow of $146.6 million projected for 2018. Depreciation rates and book values for factory equipment are also included.

Uploaded by

Ramesh Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
481 views7 pages

Sneakers Solution

The document contains financial projections for a company from 2012-2018 including sales, costs, expenses, cash flows, and other key metrics. It shows declining sales but increasing profitability from 2015-2017 as variable costs decrease as a percentage of sales. Cash flows are negative in 2012 and 2013 but become strongly positive from 2014 onward, with the highest cash flow of $146.6 million projected for 2018. Depreciation rates and book values for factory equipment are also included.

Uploaded by

Ramesh Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Sales Price 115

Variable Cost 55%


Inventory 25% of VC
A/C Payable 20% of vc
A/C Rec 8% of receviables
Plant Salvage Value 102.00
Eq Salvage Value 3.00

2012 2013 2014 2015


0 1 2 3
Sales 1.2 1.6 1.4
Revenue 138 184 161
Cannibalization 35 15
Net Rev Post erosion 103 169 161
Variable Cost 56.65 92.95 88.55
SG&A Exp 7 7 7
Endorsement 2 2 2
A&P Expenses 25 15 10
Factory Dep 3.9 7.5 7.05
Eq Dep 4 6.4 3.8
EBIT 4.45 38.15 42.6
Tax 1.78 15.26 17.04
NOPAT 2.67 22.89 25.56
Factory -150
Equipment and Ins. -20
OCF 10.57 36.79 36.41
Sale of Eq
Sale of plant
Changes in WC -1.0725 -7.095 0.86
CF -180 11.6425 29.695 37.27

Inventory 15 14.1625 23.2375 22.1375


A/C Payable 5 11.33 18.59 17.71
Acc Rec 8.24 13.52 12.88
NWC 10 11.0725 18.1675 17.3075
Changes in WC -10 -1.0725 -7.095 0.86

Fact Dep rate 2.60% 5% 4.70%


Eq Dep rates 20% 32% 19%
Factory Book Value 150 146.1 138.6 131.55
Eq book value 20 16 9.6 5.8
10
4

2016 2017 2018


4 5 6
2.4 1.8 0.9
276 207 103.5

276 207 103.5


151.8 113.85 56.925
7 7 7
2 2 2
30 25 15
6.75 6.45 6
2.4 2.2 1.2
76.05 50.5 15.375
30.42 20.2 6.15
45.63 30.3 9.225

54.78 38.95 16.425


1.8
106.14
-12.3625 7.4175 22.2525
42.4175 46.3675 146.6175

37.95 28.4625 14.23125


30.36 22.77 11.385
22.08 16.56 8.28
29.67 22.2525 0
-12.3625 7.4175 22.2525

4.50% 4.30% 4.00%


12% 11% 6%
124.8 118.35 112.35
3.4 1.2 0
Growth of market 15%
Variable Cost 38%
GA Expenses 12% 10% 8%

N 0 1 2 3
Year 2012 2013 2014 2015
Market Size 350 402.5 462.875
Market Share 15% 18% 20%
Revenue 52.5 72.45 92.575
Var Costs 19.95 27.531 35.1785
GA Expenses 6.3 7.245 7.406
Adv and Prom 3 2 2
Dep Exp 1.6 2.56 1.52
EBIT 21.65 33.114 46.4705
Tax 8.66 13.2456 18.5882
NOPAT 12.99 19.8684 27.8823
Technology Purchase 50
Mfg Eq 8
OCF 14.59 22.4284 29.4023
Changes in WC -15 15
Sale of plant 2.32
CF -53 14.59 22.4284 46.7223

Eq Dep rate 20% 32% 19%


Book Value 8 6.4 3.84 2.32
k 11%
N 0 1 2 3 4 5 6
CF -180 11.6425 29.695 37.27 42.4175 46.3675 146.6175

k 14%
N 0 1 2 3
CF -53 14.59 22.4284 46.7223 22%
8.59

N 0 1 2 3 4 5 6
CF -53 14.59 22.4284 -6.2777 14.59 22.4284 46.7223
13% 15.69 ($3.71)

($3.70)

14.39 22% ($3.70)

You might also like