Calculate the 5 years proforma

FIRST FINANCIAL MODEL Sales growth Current assets/Sales Current liabilities/Sales Net fixed assets/Sales Costs of goods sold/Sales Depreciation rate Interest rate on debt Interest paid on cash and marketable securities Tax rate Dividend payout ratio 12% 15% 8% 70% 50% 10% 8.00% 6.00% 30% 40% 0 0 1 2 3 4 4 5 Year Income statement Sales Costs of goods sold Interest payments on debt Interest earned on cash and marketable securities Depreciation Profit before tax Taxes Profit after tax Dividends Retained earnings 1,000 (500) (20) 5 (100) 385 (115) 269 (108) 162 80 150 Balance sheet Cash and marketable securities Current assets Fixed assets At cost Depreciation Net fixed assets Total assets 1,000 (300) 700 930 80 Current liabilities Debt Stock Accumulated retained earnings Total liabilities and equity 250 450 150 930 0 1 1 2 3 4 5 Year Free cash flow calculation Profit after tax Add back depreciation Subtract increase in current assets Add back increase in current liabilities Subtract increase in fixed assets at cost Add back after-tax interest on debt Subtract after-tax interest on cash and mkt. securities Free cash flow