Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
FY 12/31 Common Size Assumptions Common Size 2017 2018E Revenue 125,000,000 100.0% Revenue 20% 150,000,000 150,000,000 100.0% Cost of Goods Sold 57,500,000 46.0% 0.0% Gross
| FY 12/31 | Common Size | Assumptions | Common Size | ||||
| 2017 | 2018E | ||||||
| Revenue | 125,000,000 | 100.0% | Revenue 20% | 150,000,000 | 150,000,000 | 100.0% | |
| Cost of Goods Sold | 57,500,000 | 46.0% | 0.0% | ||||
| Gross Profit | 67,500,000 | 54.0% | G. Margins 1.0% | 0.0% | |||
| Sales and Marketing (S&M) | 25,000,000 | 20.0% | S&M 1.0% (CSB) | 0.0% | |||
| General and Admin | 12,500,000 | 10.0% | G&A improves 2% (CSB) | 0.0% | |||
| Research and Development | 5,000,000 | 4.0% | R&D $1,000,000 | 0.0% | |||
| Depreciation and Amortization | 5,000,000 | 4.0% | D&A Stable ($ value) | 0.0% | |||
| Total Operating Costs | 47,500,000 | 38.0% | 0.0% | ||||
| Operating Income | 20,000,000 | 16.0% | - | - | 0.0% | ||
| Interest Income | 250,000 | 0.2% | Approx 2.0% of Avg. Cash | 400,000 | 400,000 | 0.3% | |
| Interest Expense | 880,000 | 0.7% | 7% of Total Installment Debt Obligations | 0.0% | |||
| 0.0% | |||||||
| Pre Tax Income | 19,370,000 | 15.5% | 0.0% | ||||
| Tax (35%) | 6,779,500 | 5.4% | 21% (Change from 2017) | 0.0% | |||
| Net Income | 12,590,500 | 10.1% | 0.0% | ||||
| EPS - Basic | $ 1.26 | ||||||
| EPS - Diluted | |||||||
| Shares Outstanding | 10,000,000 | 10,000,000 | 10,000,000 | ||||
| Shares Outstanding for Diluted | |||||||
| 5 mil common stock warrants exercisable @ $4.50, stock price for calculations = $5 | |||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started