Compare outputs, with your selected scenario first, & the other second Final Year Scenario X (my scenario) Scenario y (other scenario) Key Metrics/ Ratios (pick 5 meaningful metrics) What are the Average Revenue Growth most Net Income or Profit Margn meaningful to Turnover days (e.g. AR, Inv, or AP) the case? Here Fixed Asset Turnover are some to Debt/Equity or Total Debt Ratio consider Return on Assets/Equity Comment on the below questions or any that are relevant to why you selected X overy (if necessary, you can use an additional page, but no more!) Did the firm become more or less profitable? What happened with the Cash Flow? From operations? From investing? From financing? Did the balance sheet metrics improve or decline? Describe your degree of comfort with your conclusion? 1 2 $ in Thousands 3 2020 4 5 6 7 8 9 10 Astronomica Scenario l: Moderate Expansion 2021 2022 2023 7.40% 6.10% 9.20% 616,476 654,081 714,256 425,908 451,462 492,094 190,568 202,619 222,162 107,453 112,825 118,467 35,473 36,892 37,999 8,333 15,000 15,000 39,309 37,901 50,697 1,250 4,438 3,875 38,059 33,463 46,822 7,992 7,027 9,833 30,066 26,436 36,989 4.9% 4.0% 5.2% 12,027 13,218 22,194 18,040 13,218 14,796 Income Statement Revenue Direct Costs @ 70% Gross Margin Comp & Benefits 60% Overhead Exp 20% Depreciation EBIT Interest Net Income Taxes 21% Net Income after Taxes (NIAT) Margin or Net Income % Dividends 30% Addition to Retained Earnings 70% 574,000 401,800 172,200 103,320 34,440 8,333 26,107 1,563 24,544 5,154 19,390 3.4% 5,817 13,573 11 Scenario II: Growth Consistent w/ prior years 2021 2022 2023 5.40% 4.10% 4.20% 604,996 629,801 656,252 417,872 434,587 451,970 187,124 195,214 204,282 106,936 110,144 113,449 35,129 35,831 36,548 8,333 10,333 10,333 36,726 38,905 43,952 1,250 1,613 1,225 35,476 37,292 42,727 7,450 7,831 8,973 28,026 29,461 33,754 4.6% 4.7% 5.1% 8,408 8,838 10,126 19,618 20,623 23,628 12 13 14 15 16 17 18 19 20 21 22 Balance Sheet Cash AR Inventory Current Assets Net Fixed Assets after Dep 23 44,899 62,904 55,041 162,845 41,667 51,602 76,004 58,344 185,949 33,333 38,675 80,640 61,844 181,160 118,333 49,153 88,059 67,410 204,622 103,333 70,443 64,643 51,518 186,605 33,333 95,437 63,843 47,626 206,906 43,000 124,633 61,130 49,531 235,294 32,667 24 25 26 27 Total Assets 204,511 219,283 299,493 307,955 219,938 249,906 267,961 28 29 30 AP Other Accrued Expenses Short term debt 44,033 8,492 6,250 46,675 8,832 6,250 49,475 9,273 11,250 53,928 9,737 11,250 45,794 8,789 6,250 47,626 9,053 7,750 49,531 9,325 7,750 32 33 34 Current Liabilities Long term debt Total Liabilities 58,775 25,000 83,775 61,757 18,750 80,507 69,999 77,500 147,499 74,915 66,250 141,165 60,833 18,750 79,583 64,429 24,500 88,929 66,606 16,750 83,356 35 36 37 38 Ret Earnings Equity Total Liabilities & Equity Check Function (Assets = Liab + Eq) 100,000 20,736 204,511 118,040 20,736 219,283 131,258 20,736 299,493 146,054 20,736 307,955 119,618 20,736 219,938 140,241 20,736 249,906 163,869 20,736 267,961 39 40 41 43 44 45 46 Days Cash on Hand Annual Cash Expenses Daily Cash Expenses Actual Cash Actual Days Cash on Hand 365 546,277 1,497 44,899 Target: 40-60 days 578,076 1,584 51,602 33 612,645 1,678 38,675 23 662,267 1,814 49,153 27 568,637 1,558 70,443 45 590,006 1,616 95,437 59 612,165 1,677 124,633 74 48 50 51 52 Statement of Cash Flows Beginning Cash 53 44,899 51,602 38,675 44,899 70,443 95,437 54 55 56 57 58 Net Income After Tax Depreciation Add AR --Source/(use of cash) Inv --Source/(use of cash) AP --Source/(use of cash) Other Accrued Exp(S/U of cash Cash Flow from Operating 30,066 8,333 (13,100) (3,302) 2,642 340 24,979 26,436 15,000 (4,636) (3,501) 2,800 442 36,541 36,989 15,000 (7,419) (5,566) 4,453 464 43,921 28,026 8,333 (1,739) 3,523 1,761 297 40,201 29,461 10,333 801 3,893 1,832 264 46,583 33,754 10,333 2,712 (1,905) 1,905 272 47,072 59 60 61 62 63 Fixed Asset Acquisition Dividends Issued (100,000) (13,218) (20,000) (8,838) 64 (12,027) (22,194) (8,408) (10,126) 65 Equity Raised 66 Cash Flow from Investing (12,027) (113,218) (22,194) (8,408) (28,838) (10,126) 67 69 70 Debt Issuance Debt Repayment Cash Flow from Financing (6,250) (6,250) 75,000 (11,250) 63,750 (11,250) (11,250) (6,250) (6,250) 15,000 (7,750) 7,250 (7,750) (7,750) 71 72 73 Total Change in Cash Ending Cash Check Function (Ending Cash fr Cash Flow=B/s Cash) 6,703 51,602 (12,927) 38,675 10,477 49,153 25,543 70,443 24,995 95,437 29,196 124,633 74 75 - 76 77 Key Metrics and Ratios Debt Service Coverage 78 5.3 2.9 3.7 5.0 4.4 5.0 79 80 81 Asset Management Sales/NWC Sales/Total Assets 5.5 Business plan is designed to meet AR, Inv, & AP Day Targets 5.9 5.5 4.8 2.2 2.3 2.8 5.0 2.8 3.9 4.4 2.5 2.8 2.4 82 83 84 Profitability Market Value Ratio for Net Income above; ROE & ROA below Not applicable in this exercise 85 86 87 88 70% 9.5% 7% 60% 13.7% 9% 50% 8.8% 5% 40% 12.0% 5% 70% 12.7% 10% 70% 11.8% 9% 70% 12.6% 10% 89 Retention Ratio ROA Internal Growth Rate * (growth without ext funds) ROE Sustainable Growth Rate* 90 91 17% 16% 13% 22% 15% 22% 10% 20% 16% 18% 15% 18% 15% 92 10% Compare outputs, with your selected scenario first, & the other second Final Year Scenario X (my scenario) Scenario y (other scenario) Key Metrics/ Ratios (pick 5 meaningful metrics) What are the Average Revenue Growth most Net Income or Profit Margn meaningful to Turnover days (e.g. AR, Inv, or AP) the case? Here Fixed Asset Turnover are some to Debt/Equity or Total Debt Ratio consider Return on Assets/Equity Comment on the below questions or any that are relevant to why you selected X overy (if necessary, you can use an additional page, but no more!) Did the firm become more or less profitable? What happened with the Cash Flow? From operations? From investing? From financing? Did the balance sheet metrics improve or decline? Describe your degree of comfort with your conclusion? 1 2 $ in Thousands 3 2020 4 5 6 7 8 9 10 Astronomica Scenario l: Moderate Expansion 2021 2022 2023 7.40% 6.10% 9.20% 616,476 654,081 714,256 425,908 451,462 492,094 190,568 202,619 222,162 107,453 112,825 118,467 35,473 36,892 37,999 8,333 15,000 15,000 39,309 37,901 50,697 1,250 4,438 3,875 38,059 33,463 46,822 7,992 7,027 9,833 30,066 26,436 36,989 4.9% 4.0% 5.2% 12,027 13,218 22,194 18,040 13,218 14,796 Income Statement Revenue Direct Costs @ 70% Gross Margin Comp & Benefits 60% Overhead Exp 20% Depreciation EBIT Interest Net Income Taxes 21% Net Income after Taxes (NIAT) Margin or Net Income % Dividends 30% Addition to Retained Earnings 70% 574,000 401,800 172,200 103,320 34,440 8,333 26,107 1,563 24,544 5,154 19,390 3.4% 5,817 13,573 11 Scenario II: Growth Consistent w/ prior years 2021 2022 2023 5.40% 4.10% 4.20% 604,996 629,801 656,252 417,872 434,587 451,970 187,124 195,214 204,282 106,936 110,144 113,449 35,129 35,831 36,548 8,333 10,333 10,333 36,726 38,905 43,952 1,250 1,613 1,225 35,476 37,292 42,727 7,450 7,831 8,973 28,026 29,461 33,754 4.6% 4.7% 5.1% 8,408 8,838 10,126 19,618 20,623 23,628 12 13 14 15 16 17 18 19 20 21 22 Balance Sheet Cash AR Inventory Current Assets Net Fixed Assets after Dep 23 44,899 62,904 55,041 162,845 41,667 51,602 76,004 58,344 185,949 33,333 38,675 80,640 61,844 181,160 118,333 49,153 88,059 67,410 204,622 103,333 70,443 64,643 51,518 186,605 33,333 95,437 63,843 47,626 206,906 43,000 124,633 61,130 49,531 235,294 32,667 24 25 26 27 Total Assets 204,511 219,283 299,493 307,955 219,938 249,906 267,961 28 29 30 AP Other Accrued Expenses Short term debt 44,033 8,492 6,250 46,675 8,832 6,250 49,475 9,273 11,250 53,928 9,737 11,250 45,794 8,789 6,250 47,626 9,053 7,750 49,531 9,325 7,750 32 33 34 Current Liabilities Long term debt Total Liabilities 58,775 25,000 83,775 61,757 18,750 80,507 69,999 77,500 147,499 74,915 66,250 141,165 60,833 18,750 79,583 64,429 24,500 88,929 66,606 16,750 83,356 35 36 37 38 Ret Earnings Equity Total Liabilities & Equity Check Function (Assets = Liab + Eq) 100,000 20,736 204,511 118,040 20,736 219,283 131,258 20,736 299,493 146,054 20,736 307,955 119,618 20,736 219,938 140,241 20,736 249,906 163,869 20,736 267,961 39 40 41 43 44 45 46 Days Cash on Hand Annual Cash Expenses Daily Cash Expenses Actual Cash Actual Days Cash on Hand 365 546,277 1,497 44,899 Target: 40-60 days 578,076 1,584 51,602 33 612,645 1,678 38,675 23 662,267 1,814 49,153 27 568,637 1,558 70,443 45 590,006 1,616 95,437 59 612,165 1,677 124,633 74 48 50 51 52 Statement of Cash Flows Beginning Cash 53 44,899 51,602 38,675 44,899 70,443 95,437 54 55 56 57 58 Net Income After Tax Depreciation Add AR --Source/(use of cash) Inv --Source/(use of cash) AP --Source/(use of cash) Other Accrued Exp(S/U of cash Cash Flow from Operating 30,066 8,333 (13,100) (3,302) 2,642 340 24,979 26,436 15,000 (4,636) (3,501) 2,800 442 36,541 36,989 15,000 (7,419) (5,566) 4,453 464 43,921 28,026 8,333 (1,739) 3,523 1,761 297 40,201 29,461 10,333 801 3,893 1,832 264 46,583 33,754 10,333 2,712 (1,905) 1,905 272 47,072 59 60 61 62 63 Fixed Asset Acquisition Dividends Issued (100,000) (13,218) (20,000) (8,838) 64 (12,027) (22,194) (8,408) (10,126) 65 Equity Raised 66 Cash Flow from Investing (12,027) (113,218) (22,194) (8,408) (28,838) (10,126) 67 69 70 Debt Issuance Debt Repayment Cash Flow from Financing (6,250) (6,250) 75,000 (11,250) 63,750 (11,250) (11,250) (6,250) (6,250) 15,000 (7,750) 7,250 (7,750) (7,750) 71 72 73 Total Change in Cash Ending Cash Check Function (Ending Cash fr Cash Flow=B/s Cash) 6,703 51,602 (12,927) 38,675 10,477 49,153 25,543 70,443 24,995 95,437 29,196 124,633 74 75 - 76 77 Key Metrics and Ratios Debt Service Coverage 78 5.3 2.9 3.7 5.0 4.4 5.0 79 80 81 Asset Management Sales/NWC Sales/Total Assets 5.5 Business plan is designed to meet AR, Inv, & AP Day Targets 5.9 5.5 4.8 2.2 2.3 2.8 5.0 2.8 3.9 4.4 2.5 2.8 2.4 82 83 84 Profitability Market Value Ratio for Net Income above; ROE & ROA below Not applicable in this exercise 85 86 87 88 70% 9.5% 7% 60% 13.7% 9% 50% 8.8% 5% 40% 12.0% 5% 70% 12.7% 10% 70% 11.8% 9% 70% 12.6% 10% 89 Retention Ratio ROA Internal Growth Rate * (growth without ext funds) ROE Sustainable Growth Rate* 90 91 17% 16% 13% 22% 15% 22% 10% 20% 16% 18% 15% 18% 15% 92 10%