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Need the formulas Income Statement Revenues 10,000 11,000 Business Revenues is driven by the growth rate 12,100 10% Growth Rate 10% Driver Cost of Revenues

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Income Statement Revenues 10,000 11,000 Business Revenues is driven by the growth rate 12,100 10% Growth Rate 10% Driver Cost of Revenues 6,000 6,710 Accounting Business Driver Gross Profits is calculated as Revenues multiplied by Gross Margin 0% 1500 1700 Business OpEx is calculated as Revenues multiplied by OpEx Percent Revenues Gross Profits Gross Margin Operating Expenses (OpEx) OpEx Percent of Revenues EBIT Net Interest Income (Expense) Interest Rate 0% Driver EBIT is calculated as Gross Profits minus Operating Expenses (OpEx) Interest Income is calculated as Interest Rate multiplied by Cash (as there is no Debt) 50 Accounting Business Driver 50 5% 5% 5% Pretax Income Accounting Business Driver Pretax Income is calculated as EBIT plus Net Interest Income (Expenses) Taxes is calculated as Pretax Profits multiplied by Tax Rate Taxes Tax Rate 0% Net Income Balance Sheet Cash Accounting 1,000 1,500 Accounts Receivable 1,600 15,000 Days of Sales Outstanding (DSO) PP&E Accounts Payable Days of Payables Outstanding (DPO) Equity Accounting Business Cash is previous year Cash plus Increase (Decrease) in Cash Accounts Receivable is calculated as Revenues multiplied by Days of Sales Outstanding (DSO) / 365 Days of Sales Outstanding (DSO) is calculated as Accounts Receivable / Revenues * 365 PP&E in a year is calculated as PP&E in the previous year plus CapEx in the current year minus Depreciation in the current year. Accounts Payable is calculated as Cost of Revenues multiplied by Days of Payables Outstanding (DPO) / 365 Days of Payables Outstanding (DPO) is calculated as Accounts Payable / Cost of Revenues * 365 Equity in a year is calculated as Equity in the previous year plus Net Income minus Dividends ALERT: Because the value of the Dividends are shown as a negative on the Cash Flow Statement the value should be added to subtract Dividends 1,000 1,200 Driver 12,500 Income Statement Revenues 10,000 11,000 Business Revenues is driven by the growth rate 12,100 10% Growth Rate 10% Driver Cost of Revenues 6,000 6,710 Accounting Business Driver Gross Profits is calculated as Revenues multiplied by Gross Margin 0% 1500 1700 Business OpEx is calculated as Revenues multiplied by OpEx Percent Revenues Gross Profits Gross Margin Operating Expenses (OpEx) OpEx Percent of Revenues EBIT Net Interest Income (Expense) Interest Rate 0% Driver EBIT is calculated as Gross Profits minus Operating Expenses (OpEx) Interest Income is calculated as Interest Rate multiplied by Cash (as there is no Debt) 50 Accounting Business Driver 50 5% 5% 5% Pretax Income Accounting Business Driver Pretax Income is calculated as EBIT plus Net Interest Income (Expenses) Taxes is calculated as Pretax Profits multiplied by Tax Rate Taxes Tax Rate 0% Net Income Balance Sheet Cash Accounting 1,000 1,500 Accounts Receivable 1,600 15,000 Days of Sales Outstanding (DSO) PP&E Accounts Payable Days of Payables Outstanding (DPO) Equity Accounting Business Cash is previous year Cash plus Increase (Decrease) in Cash Accounts Receivable is calculated as Revenues multiplied by Days of Sales Outstanding (DSO) / 365 Days of Sales Outstanding (DSO) is calculated as Accounts Receivable / Revenues * 365 PP&E in a year is calculated as PP&E in the previous year plus CapEx in the current year minus Depreciation in the current year. Accounts Payable is calculated as Cost of Revenues multiplied by Days of Payables Outstanding (DPO) / 365 Days of Payables Outstanding (DPO) is calculated as Accounts Payable / Cost of Revenues * 365 Equity in a year is calculated as Equity in the previous year plus Net Income minus Dividends ALERT: Because the value of the Dividends are shown as a negative on the Cash Flow Statement the value should be added to subtract Dividends 1,000 1,200 Driver 12,500

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