Oscar Farinetti, Founder and President of Eataly, has hired you to assess the viability of opening a new store in San Francisco, CA. An initial investment will be made on January 1, 2020, after which it will take one year to complete all of the required modifications to the building, along with hiring of personnel and ordering of inventory.

The plan is to open the new store on January 1, 2021. You need to gather some information to

forecast the new stores free cash flows for the first four years after it opens,

calculate the weighted average cost of capital, and

then find the net present value for opening the new store.

Part A Estimating Free Cash Flows

Estimate the initial investment in fixed asset: A 55,000-square-foot site has been located for the new store in San Francisco. The initial investment in fixed asset to be made on January 1, 2020 (the investment in fixed assets covering the property, plant redesign, and equipment), not including the investment in working capital is $22.8 million.

Total initial outlay: Assuming that there is an initial investment in working capital corresponding to 14% of the estimated first years sales, calculate the total initial outlay on January 1, 2020. (Please see the table below for the hint)

Estimate the sales for the first year of the stores operations (2021). Choose the answer that you think is best. Your answer could be ranging from $48.0 million, $63.3 million, $82.5 million to $96.7 million.

Growth rate of sales: Estimate the growth rate of sales for the next three years of the stores operations (2021-2024). Your answer should range from 12%, 24%, 36%, to 67%.

Estimate the EBITDA as a percentage of sales (2021-2024). Choose the answer that you think is best. Your answer could be 6.0%, 7.3%, 8.6%, 9.9%.

Depreciation: Assume that the initial investment in fixed assets can be depreciated using straight-line depreciation over 20 years. Calculate the annual depreciation expense associated with the new store.

Estimate the marginal (U.S.) federal tax rate to be applied to the new stores profits.

Assuming that the long-term growth rate of the new stores sales (2024 and beyond) is approximately the same as average forecasted U.S. GDP growth rates, estimate the long-term growth rate of sales.

Use the following equation to calculate the free cash flows for the new store:

FCF = EBIT(1 Tax Rate) + Depreciation Capital Expenditures Increases in Net Working Capital

Make the following assumptions:

Assume that Depreciation grows at the same rate as sales.

For simplicity, assume that Depreciation exactly offsets Capital Expenditures in

the years after the new store opens. c. Assume that the long-term growth rate of free cash flows in 2025 and beyond is the same as the long-term growth rate of sales d. Assume that the investment in working capital always corresponds to 14% of the estimated sales in the following year.

2020 2021 2022 2023 2024 2025

Sales: EBITDA: Depreciation: EBIT: Taxes: Net Income 1: Initial investment in fixed assets: $22.8m Investment in net working capital:

14% of 2019 sales; Change in net working capital:

Free cash flow (FCF):

Courseware #9-515-708 Eataly: Reimagining the Grocery Store Exhibit 3. Financials Eataly Distribuzione (Italian Operations Only) All figures in Euros (), rounded to the nearest 1,000 Income Statement (2009-2013) 2009 2010 2011 2012 2013 41,895 1,607 43,502 49,898 2,866 52,764 60,571 3,181 63,752 100,403 5,741 106,145 130,132 6,943 137,075 24,366 6,018 848 8,991 1,849 29,155 8,239 1,174 10,937 2,110 34.371 9,087 1,698 13,864 2,333 59,773 7 9,107 10,232 12,650 4,1595 ,704 24,328 31,040 2,260 3,936 (301) (1,144) 279 302 A) Value of production Sales revenues Other revenues Total revenues B) Costs of production Raw material and consumables used Services Cost of use of assets owned by others (third party assets) Cost of employees Amortization depreciation & write downs Variations of inventory of raw and auxiliary materials, consumables and supplies Other expenses Total costs of production Difference between value and costs of production C) Financial income and expenses Other financial income Interest and other financial expenses Exchange rate gains Total financial income and expenses E) Extraordinary income and expenses Extraordinary income Extraordinary expenses Total extraordinary income and expenses Profit before taxes Taxes on the income of the fiscal year, current, deferred and prepaid Net profit (loss) for the fiscal year (209) 378 61,521 2,231 (726) 921 100,946 5,199 (2,231) 1,303 131,509 5,566 42,050 1,452 50,773 1,991 16 (4) 18 (102) 3 ( 81) 234 (269) (1) ( 36) 90 (183) 0 ( 93) 174 (174) (8) ( 9) 41 53 (74) ( 70) 1,435 750 685 (275) ( 268) 1,643 930 713 (231) ( 230) 1,964 1,133 832 (155) 401 5,506 2,353 3,153 348 (482) ( 134) 5,424 2,054 3.370 Source: Company documents EBITDA EBITDA (% of value of production) EBIT EBIT (% of value of production) 3,301 7.6% 1,452 3.3% 4,102 7.8% 1,991 3.8% 4,564 7.2% 2,231 3.5% 7,459 7.0% 5,199 4.9% 9,502 6.9% 5,566 4.1% Eataly Distribuzione (Italian Operations Only) All figures in Euros (C), rounded to the nearest 1,000 BALANCE SHEET (2009-2013) FINANCIAL STATEMENT: ASSETS 2009 2010 2011 2012 201 074 38 23 82 207 414 994 432 920 743 1,953 959 1,811 2,708 922 1,770 2,616 1,906 4.199 5,068 9.044 6.991 4.702 310 611 9.380 1,625 3,621 7.683 1,653 3.241 1.945 4,269 2752 7,106 1157 2962 1.486 169 14,271 01 65 351 15,910 13,922 1,879 29,405 14,488 706 1,252 1,232 B) Assets UJINTANGIBLE ASSETS Start-up and capital costs R&D and advertising costs Patent rights and similar rights Licenses trademarks and similar rights Other intangible assets Total intangible assets W) TANGIBLE ASSETS Land and buildings Plant and machinery Industrial and commercial equipment Other tangible assets Assets under construction and payments on account Total tangible assets IN) FINANCIAL ASSETS Investments Receivables Total financial assets Total assets C) Assets forming part of working capital I) INVENTORY Finished products and goods Total inventory 1) RECEIVABLES Trade receivables Receivables from subsidiary companies Credit for taxes Prepaid taxes Other receivables Total receivables IV) CASH FUNDS Total assets forming part of working capital PREPAYMENTS AND ACCRUED INCOME Total assets 1949 12.140 610 1156 (1767 17,595 1,039 703 1.742 20,360 C 2.054 18,278 (14.392 31,496 (1.700 36,173 2,269 2,269 3,413 ,413 3.622 3,622 4.348 4,348 3 6,579 6,579 4,025 15.231 6,763 265 8,048 265 961 12.934 0 1259 910 928 3,082 158 123 227 8,090 97 5,050 5901 (13.219 14 30,828 9,432 11,750 24,804 13,885 15.147 33,380 685 20,357 27.469 54,405 10.794 22,297 101 40,676 45,190 64,913 90,649 4,000 4.000 4000 130 4.000 165 4,000 244 203 3.000 2.430 6AS 712 7.957 4.545 3.153 11,942 7.539 3,370 15,408 7,245 8,789 19 571 886 1.110 1.620 2.325 FINANCIAL STATEMENT: LIABILITIES A) Net Equity I) CAPITAL IV LEGAL RESERVE VII) OTHER RESERVES, INDICATED SEPARATELY VIII) RETAINED EARNINGS (LOSSES) CARRIED FORWARD IX) NET PROFIT (LOSS) FOR THE YEAR Total net equity B) Provisions for contingencies and charges C) Provision for employees severance indemnity D) Debts Amounts payable to partners for funds Amounts payable to banks Advance payments Amounts payable to suppliers Amounts payable to subsidiary companies Amonunts payable to parent companies Amounts payable to tax authorities Amounts payable to social security institutions Other debts Total debts E) ACCRUED EXPENSES AND DEFERRED INCOME Total liabilities 6.000 6,383 6,211 2,945 6.240 4.397 6,095 1,500 70 19,318 13,356 30,875 40,865 700 D 1,028 215 2,770 2,707 1,227 379 21,046 0 0 1,596 256 541 32,695 2,577 45,190 529 274 410 807 557 29,147 2,685 40,676 1.229 46,756 4,589 64,912 1,636 66,123 6,784 90,648 1.235 30,827 Source: Company documents Courseware #9-515-708 Eataly: Reimagining the Grocery Store Exhibit 3. Financials Eataly Distribuzione (Italian Operations Only) All figures in Euros (), rounded to the nearest 1,000 Income Statement (2009-2013) 2009 2010 2011 2012 2013 41,895 1,607 43,502 49,898 2,866 52,764 60,571 3,181 63,752 100,403 5,741 106,145 130,132 6,943 137,075 24,366 6,018 848 8,991 1,849 29,155 8,239 1,174 10,937 2,110 34.371 9,087 1,698 13,864 2,333 59,773 7 9,107 10,232 12,650 4,1595 ,704 24,328 31,040 2,260 3,936 (301) (1,144) 279 302 A) Value of production Sales revenues Other revenues Total revenues B) Costs of production Raw material and consumables used Services Cost of use of assets owned by others (third party assets) Cost of employees Amortization depreciation & write downs Variations of inventory of raw and auxiliary materials, consumables and supplies Other expenses Total costs of production Difference between value and costs of production C) Financial income and expenses Other financial income Interest and other financial expenses Exchange rate gains Total financial income and expenses E) Extraordinary income and expenses Extraordinary income Extraordinary expenses Total extraordinary income and expenses Profit before taxes Taxes on the income of the fiscal year, current, deferred and prepaid Net profit (loss) for the fiscal year (209) 378 61,521 2,231 (726) 921 100,946 5,199 (2,231) 1,303 131,509 5,566 42,050 1,452 50,773 1,991 16 (4) 18 (102) 3 ( 81) 234 (269) (1) ( 36) 90 (183) 0 ( 93) 174 (174) (8) ( 9) 41 53 (74) ( 70) 1,435 750 685 (275) ( 268) 1,643 930 713 (231) ( 230) 1,964 1,133 832 (155) 401 5,506 2,353 3,153 348 (482) ( 134) 5,424 2,054 3.370 Source: Company documents EBITDA EBITDA (% of value of production) EBIT EBIT (% of value of production) 3,301 7.6% 1,452 3.3% 4,102 7.8% 1,991 3.8% 4,564 7.2% 2,231 3.5% 7,459 7.0% 5,199 4.9% 9,502 6.9% 5,566 4.1% Eataly Distribuzione (Italian Operations Only) All figures in Euros (C), rounded to the nearest 1,000 BALANCE SHEET (2009-2013) FINANCIAL STATEMENT: ASSETS 2009 2010 2011 2012 201 074 38 23 82 207 414 994 432 920 743 1,953 959 1,811 2,708 922 1,770 2,616 1,906 4.199 5,068 9.044 6.991 4.702 310 611 9.380 1,625 3,621 7.683 1,653 3.241 1.945 4,269 2752 7,106 1157 2962 1.486 169 14,271 01 65 351 15,910 13,922 1,879 29,405 14,488 706 1,252 1,232 B) Assets UJINTANGIBLE ASSETS Start-up and capital costs R&D and advertising costs Patent rights and similar rights Licenses trademarks and similar rights Other intangible assets Total intangible assets W) TANGIBLE ASSETS Land and buildings Plant and machinery Industrial and commercial equipment Other tangible assets Assets under construction and payments on account Total tangible assets IN) FINANCIAL ASSETS Investments Receivables Total financial assets Total assets C) Assets forming part of working capital I) INVENTORY Finished products and goods Total inventory 1) RECEIVABLES Trade receivables Receivables from subsidiary companies Credit for taxes Prepaid taxes Other receivables Total receivables IV) CASH FUNDS Total assets forming part of working capital PREPAYMENTS AND ACCRUED INCOME Total assets 1949 12.140 610 1156 (1767 17,595 1,039 703 1.742 20,360 C 2.054 18,278 (14.392 31,496 (1.700 36,173 2,269 2,269 3,413 ,413 3.622 3,622 4.348 4,348 3 6,579 6,579 4,025 15.231 6,763 265 8,048 265 961 12.934 0 1259 910 928 3,082 158 123 227 8,090 97 5,050 5901 (13.219 14 30,828 9,432 11,750 24,804 13,885 15.147 33,380 685 20,357 27.469 54,405 10.794 22,297 101 40,676 45,190 64,913 90,649 4,000 4.000 4000 130 4.000 165 4,000 244 203 3.000 2.430 6AS 712 7.957 4.545 3.153 11,942 7.539 3,370 15,408 7,245 8,789 19 571 886 1.110 1.620 2.325 FINANCIAL STATEMENT: LIABILITIES A) Net Equity I) CAPITAL IV LEGAL RESERVE VII) OTHER RESERVES, INDICATED SEPARATELY VIII) RETAINED EARNINGS (LOSSES) CARRIED FORWARD IX) NET PROFIT (LOSS) FOR THE YEAR Total net equity B) Provisions for contingencies and charges C) Provision for employees severance indemnity D) Debts Amounts payable to partners for funds Amounts payable to banks Advance payments Amounts payable to suppliers Amounts payable to subsidiary companies Amonunts payable to parent companies Amounts payable to tax authorities Amounts payable to social security institutions Other debts Total debts E) ACCRUED EXPENSES AND DEFERRED INCOME Total liabilities 6.000 6,383 6,211 2,945 6.240 4.397 6,095 1,500 70 19,318 13,356 30,875 40,865 700 D 1,028 215 2,770 2,707 1,227 379 21,046 0 0 1,596 256 541 32,695 2,577 45,190 529 274 410 807 557 29,147 2,685 40,676 1.229 46,756 4,589 64,912 1,636 66,123 6,784 90,648 1.235 30,827 Source: Company documents

Question

Oscar Farinetti, Founder and President of Eataly, has hired you to assess the viability of opening a new store in San Francisco, CA. An initial investment will be made on January 1, 2020, after which it will take one year to complete all of the required modifications to the building, along with hiring of personnel and ordering of inventory.

The plan is to open the new store on January 1, 2021. You need to gather some information to

forecast the new stores free cash flows for the first four years after it opens,
calculate the weighted average cost of capital, and
then find the net present value for opening the new store.

Part A Estimating Free Cash Flows

Estimate the initial investment in fixed asset: A 55,000-square-foot site has been located for the new store in San Francisco. The initial investment in fixed asset to be made on January 1, 2020 (the investment in fixed assets covering the property, plant redesign, and equipment), not including the investment in working capital is $22.8 million.
Total initial outlay: Assuming that there is an initial investment in working capital corresponding to 14% of the estimated first years sales, calculate the total initial outlay on January 1, 2020. (Please see the table below for the hint)
Estimate the sales for the first year of the stores operations (2021). Choose the answer that you think is best. Your answer could be ranging from $48.0 million, $63.3 million, $82.5 million to $96.7 million.
Growth rate of sales: Estimate the growth rate of sales for the next three years of the stores operations (2021-2024). Your answer should range from 12%, 24%, 36%, to 67%.
Estimate the EBITDA as a percentage of sales (2021-2024). Choose the answer that you think is best. Your answer could be 6.0%, 7.3%, 8.6%, 9.9%.

Depreciation: Assume that the initial investment in fixed assets can be depreciated using straight-line depreciation over 20 years. Calculate the annual depreciation expense associated with the new store.
Estimate the marginal (U.S.) federal tax rate to be applied to the new stores profits.
Assuming that the long-term growth rate of the new stores sales (2024 and beyond) is approximately the same as average forecasted U.S. GDP growth rates, estimate the long-term growth rate of sales.

Use the following equation to calculate the free cash flows for the new store:

FCF = EBIT(1 Tax Rate) + Depreciation Capital Expenditures Increases in Net Working Capital

Make the following assumptions:

Assume that Depreciation grows at the same rate as sales.
For simplicity, assume that Depreciation exactly offsets Capital Expenditures in

the years after the new store opens. c. Assume that the long-term growth rate of free cash flows in 2025 and beyond is the same as the long-term growth rate of sales d. Assume that the investment in working capital always corresponds to 14% of the estimated sales in the following year.

2020 2021 2022 2023 2024 2025

Sales: EBITDA: Depreciation: EBIT: Taxes: Net Income 1: Initial investment in fixed assets: $22.8m Investment in net working capital:

14% of 2019 sales; Change in net working capital:

Free cash flow (FCF):

image text in transcribed

Courseware #9-515-708 Eataly: Reimagining the Grocery Store Exhibit 3. Financials Eataly Distribuzione (Italian Operations Only) All figures in Euros (), rounded to the nearest 1,000 Income Statement (2009-2013) 2009 2010 2011 2012 2013 41,895 1,607 43,502 49,898 2,866 52,764 60,571 3,181 63,752 100,403 5,741 106,145 130,132 6,943 137,075 24,366 6,018 848 8,991 1,849 29,155 8,239 1,174 10,937 2,110 34.371 9,087 1,698 13,864 2,333 59,773 7 9,107 10,232 12,650 4,1595 ,704 24,328 31,040 2,260 3,936 (301) (1,144) 279 302 A) Value of production Sales revenues Other revenues Total revenues B) Costs of production Raw material and consumables used Services Cost of use of assets owned by others (third party assets) Cost of employees Amortization depreciation & write downs Variations of inventory of raw and auxiliary materials, consumables and supplies Other expenses Total costs of production Difference between value and costs of production C) Financial income and expenses Other financial income Interest and other financial expenses Exchange rate gains Total financial income and expenses E) Extraordinary income and expenses Extraordinary income Extraordinary expenses Total extraordinary income and expenses Profit before taxes Taxes on the income of the fiscal year, current, deferred and prepaid Net profit (loss) for the fiscal year (209) 378 61,521 2,231 (726) 921 100,946 5,199 (2,231) 1,303 131,509 5,566 42,050 1,452 50,773 1,991 16 (4) 18 (102) 3 ( 81) 234 (269) (1) ( 36) 90 (183) 0 ( 93) 174 (174) (8) ( 9) 41 53 (74) ( 70) 1,435 750 685 (275) ( 268) 1,643 930 713 (231) ( 230) 1,964 1,133 832 (155) 401 5,506 2,353 3,153 348 (482) ( 134) 5,424 2,054 3.370 Source: Company documents EBITDA EBITDA (% of value of production) EBIT EBIT (% of value of production) 3,301 7.6% 1,452 3.3% 4,102 7.8% 1,991 3.8% 4,564 7.2% 2,231 3.5% 7,459 7.0% 5,199 4.9% 9,502 6.9% 5,566 4.1% Eataly Distribuzione (Italian Operations Only) All figures in Euros (C), rounded to the nearest 1,000 BALANCE SHEET (2009-2013) FINANCIAL STATEMENT: ASSETS 2009 2010 2011 2012 201 074 38 23 82 207 414 994 432 920 743 1,953 959 1,811 2,708 922 1,770 2,616 1,906 4.199 5,068 9.044 6.991 4.702 310 611 9.380 1,625 3,621 7.683 1,653 3.241 1.945 4,269 2752 7,106 1157 2962 1.486 169 14,271 01 65 351 15,910 13,922 1,879 29,405 14,488 706 1,252 1,232 B) Assets UJINTANGIBLE ASSETS Start-up and capital costs R&D and advertising costs Patent rights and similar rights Licenses trademarks and similar rights Other intangible assets Total intangible assets W) TANGIBLE ASSETS Land and buildings Plant and machinery Industrial and commercial equipment Other tangible assets Assets under construction and payments on account Total tangible assets IN) FINANCIAL ASSETS Investments Receivables Total financial assets Total assets C) Assets forming part of working capital I) INVENTORY Finished products and goods Total inventory 1) RECEIVABLES Trade receivables Receivables from subsidiary companies Credit for taxes Prepaid taxes Other receivables Total receivables IV) CASH FUNDS Total assets forming part of working capital PREPAYMENTS AND ACCRUED INCOME Total assets 1949 12.140 610 1156 (1767 17,595 1,039 703 1.742 20,360 C 2.054 18,278 (14.392 31,496 (1.700 36,173 2,269 2,269 3,413 ,413 3.622 3,622 4.348 4,348 3 6,579 6,579 4,025 15.231 6,763 265 8,048 265 961 12.934 0 1259 910 928 3,082 158 123 227 8,090 97 5,050 5901 (13.219 14 30,828 9,432 11,750 24,804 13,885 15.147 33,380 685 20,357 27.469 54,405 10.794 22,297 101 40,676 45,190 64,913 90,649 4,000 4.000 4000 130 4.000 165 4,000 244 203 3.000 2.430 6AS 712 7.957 4.545 3.153 11,942 7.539 3,370 15,408 7,245 8,789 19 571 886 1.110 1.620 2.325 FINANCIAL STATEMENT: LIABILITIES A) Net Equity I) CAPITAL IV LEGAL RESERVE VII) OTHER RESERVES, INDICATED SEPARATELY VIII) RETAINED EARNINGS (LOSSES) CARRIED FORWARD IX) NET PROFIT (LOSS) FOR THE YEAR Total net equity B) Provisions for contingencies and charges C) Provision for employees severance indemnity D) Debts Amounts payable to partners for funds Amounts payable to banks Advance payments Amounts payable to suppliers Amounts payable to subsidiary companies Amonunts payable to parent companies Amounts payable to tax authorities Amounts payable to social security institutions Other debts Total debts E) ACCRUED EXPENSES AND DEFERRED INCOME Total liabilities 6.000 6,383 6,211 2,945 6.240 4.397 6,095 1,500 70 19,318 13,356 30,875 40,865 700 D 1,028 215 2,770 2,707 1,227 379 21,046 0 0 1,596 256 541 32,695 2,577 45,190 529 274 410 807 557 29,147 2,685 40,676 1.229 46,756 4,589 64,912 1,636 66,123 6,784 90,648 1.235 30,827 Source: Company documents Courseware #9-515-708 Eataly: Reimagining the Grocery Store Exhibit 3. Financials Eataly Distribuzione (Italian Operations Only) All figures in Euros (), rounded to the nearest 1,000 Income Statement (2009-2013) 2009 2010 2011 2012 2013 41,895 1,607 43,502 49,898 2,866 52,764 60,571 3,181 63,752 100,403 5,741 106,145 130,132 6,943 137,075 24,366 6,018 848 8,991 1,849 29,155 8,239 1,174 10,937 2,110 34.371 9,087 1,698 13,864 2,333 59,773 7 9,107 10,232 12,650 4,1595 ,704 24,328 31,040 2,260 3,936 (301) (1,144) 279 302 A) Value of production Sales revenues Other revenues Total revenues B) Costs of production Raw material and consumables used Services Cost of use of assets owned by others (third party assets) Cost of employees Amortization depreciation & write downs Variations of inventory of raw and auxiliary materials, consumables and supplies Other expenses Total costs of production Difference between value and costs of production C) Financial income and expenses Other financial income Interest and other financial expenses Exchange rate gains Total financial income and expenses E) Extraordinary income and expenses Extraordinary income Extraordinary expenses Total extraordinary income and expenses Profit before taxes Taxes on the income of the fiscal year, current, deferred and prepaid Net profit (loss) for the fiscal year (209) 378 61,521 2,231 (726) 921 100,946 5,199 (2,231) 1,303 131,509 5,566 42,050 1,452 50,773 1,991 16 (4) 18 (102) 3 ( 81) 234 (269) (1) ( 36) 90 (183) 0 ( 93) 174 (174) (8) ( 9) 41 53 (74) ( 70) 1,435 750 685 (275) ( 268) 1,643 930 713 (231) ( 230) 1,964 1,133 832 (155) 401 5,506 2,353 3,153 348 (482) ( 134) 5,424 2,054 3.370 Source: Company documents EBITDA EBITDA (% of value of production) EBIT EBIT (% of value of production) 3,301 7.6% 1,452 3.3% 4,102 7.8% 1,991 3.8% 4,564 7.2% 2,231 3.5% 7,459 7.0% 5,199 4.9% 9,502 6.9% 5,566 4.1% Eataly Distribuzione (Italian Operations Only) All figures in Euros (C), rounded to the nearest 1,000 BALANCE SHEET (2009-2013) FINANCIAL STATEMENT: ASSETS 2009 2010 2011 2012 201 074 38 23 82 207 414 994 432 920 743 1,953 959 1,811 2,708 922 1,770 2,616 1,906 4.199 5,068 9.044 6.991 4.702 310 611 9.380 1,625 3,621 7.683 1,653 3.241 1.945 4,269 2752 7,106 1157 2962 1.486 169 14,271 01 65 351 15,910 13,922 1,879 29,405 14,488 706 1,252 1,232 B) Assets UJINTANGIBLE ASSETS Start-up and capital costs R&D and advertising costs Patent rights and similar rights Licenses trademarks and similar rights Other intangible assets Total intangible assets W) TANGIBLE ASSETS Land and buildings Plant and machinery Industrial and commercial equipment Other tangible assets Assets under construction and payments on account Total tangible assets IN) FINANCIAL ASSETS Investments Receivables Total financial assets Total assets C) Assets forming part of working capital I) INVENTORY Finished products and goods Total inventory 1) RECEIVABLES Trade receivables Receivables from subsidiary companies Credit for taxes Prepaid taxes Other receivables Total receivables IV) CASH FUNDS Total assets forming part of working capital PREPAYMENTS AND ACCRUED INCOME Total assets 1949 12.140 610 1156 (1767 17,595 1,039 703 1.742 20,360 C 2.054 18,278 (14.392 31,496 (1.700 36,173 2,269 2,269 3,413 ,413 3.622 3,622 4.348 4,348 3 6,579 6,579 4,025 15.231 6,763 265 8,048 265 961 12.934 0 1259 910 928 3,082 158 123 227 8,090 97 5,050 5901 (13.219 14 30,828 9,432 11,750 24,804 13,885 15.147 33,380 685 20,357 27.469 54,405 10.794 22,297 101 40,676 45,190 64,913 90,649 4,000 4.000 4000 130 4.000 165 4,000 244 203 3.000 2.430 6AS 712 7.957 4.545 3.153 11,942 7.539 3,370 15,408 7,245 8,789 19 571 886 1.110 1.620 2.325 FINANCIAL STATEMENT: LIABILITIES A) Net Equity I) CAPITAL IV LEGAL RESERVE VII) OTHER RESERVES, INDICATED SEPARATELY VIII) RETAINED EARNINGS (LOSSES) CARRIED FORWARD IX) NET PROFIT (LOSS) FOR THE YEAR Total net equity B) Provisions for contingencies and charges C) Provision for employees severance indemnity D) Debts Amounts payable to partners for funds Amounts payable to banks Advance payments Amounts payable to suppliers Amounts payable to subsidiary companies Amonunts payable to parent companies Amounts payable to tax authorities Amounts payable to social security institutions Other debts Total debts E) ACCRUED EXPENSES AND DEFERRED INCOME Total liabilities 6.000 6,383 6,211 2,945 6.240 4.397 6,095 1,500 70 19,318 13,356 30,875 40,865 700 D 1,028 215 2,770 2,707 1,227 379 21,046 0 0 1,596 256 541 32,695 2,577 45,190 529 274 410 807 557 29,147 2,685 40,676 1.229 46,756 4,589 64,912 1,636 66,123 6,784 90,648 1.235 30,827 Source: Company documents