90 Part Two Planning Fature Financial Performance TABLE 3.5 Forecasting with a Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Inc. December 31,2018 (S thousands) 2018 2019 2017 Actual $20,613 Year 3 |Net sales 4 Growth rate in net sales 5 Cost of goods soldet sales 6 Gen., sell., and admin, expenseset sales 7Long-term debt 8 Current portion long-term debt 9 Interest rate 25.0% 86.0% 12.0% $660 $100 10.0% 45.0% 50.0% 29.0% $280 14.5% $ 760 $ 100 Tax rate 11 Dividend/earnings after tax 12 Current assetset sales 13 Net fixed assets 14 Current liabilitieset sales 16 INCOME STATEMENT Forecast Forecast 2018 2018 2019 19 Net sales 20 Cost of goods sold 21 Gross profit 22 Gen, sell, and admin. exp. 23 Interest expense 24 Earnings before tax $25,766 22,159 3,607 3.092 231 285 128 156 78 78 C5-C19 C19-C20 -C9'(C7+C8+C40) C21-C22 C23 Tax - C10 C24 26 Earnings after tax 27 Dividends paid 28 Additions to retained earnings C24-C25 C11 C26 C26-C27 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 7.472 280 7,752 C13 - C31+C32 35 Current liabilities 36 Long-term debt C14'C19 37 Owners' equity 38 Total liabilities and owners 3,736 660 1,808 C35+C36+C376,204 B 15 + C28 equity 40 EXTERNAL FUNDING REQUIRED - C33-C38 $1,548 90 Part Two Planning Fature Financial Performance TABLE 3.5 Forecasting with a Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Inc. December 31,2018 (S thousands) 2018 2019 2017 Actual $20,613 Year 3 |Net sales 4 Growth rate in net sales 5 Cost of goods soldet sales 6 Gen., sell., and admin, expenseset sales 7Long-term debt 8 Current portion long-term debt 9 Interest rate 25.0% 86.0% 12.0% $660 $100 10.0% 45.0% 50.0% 29.0% $280 14.5% $ 760 $ 100 Tax rate 11 Dividend/earnings after tax 12 Current assetset sales 13 Net fixed assets 14 Current liabilitieset sales 16 INCOME STATEMENT Forecast Forecast 2018 2018 2019 19 Net sales 20 Cost of goods sold 21 Gross profit 22 Gen, sell, and admin. exp. 23 Interest expense 24 Earnings before tax $25,766 22,159 3,607 3.092 231 285 128 156 78 78 C5-C19 C19-C20 -C9'(C7+C8+C40) C21-C22 C23 Tax - C10 C24 26 Earnings after tax 27 Dividends paid 28 Additions to retained earnings C24-C25 C11 C26 C26-C27 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 7.472 280 7,752 C13 - C31+C32 35 Current liabilities 36 Long-term debt C14'C19 37 Owners' equity 38 Total liabilities and owners 3,736 660 1,808 C35+C36+C376,204 B 15 + C28 equity 40 EXTERNAL FUNDING REQUIRED - C33-C38 $1,548