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Part 2.etion 2 (10) B Temos restant pour cette partie 00:50:03 GB Question 25 to 1 Business plans Financial Forecast TOPIC 2 : You are

Part 2.etion 2 (10) B Temos restant pour cette partie 00:50:03 GB Question 25 to 1 Business plans Financial Forecast TOPIC 2 : You are given the following data (Exhibits 1, 2 and 3) about Clever Drones Inc, a start-up company that is going ty manufacture and sell the latest generation of intelligent drones that are pre-programmed with an autonomy of 150 kilometers They can carry up to 10 kilograms of groceries and other goods for fast deliveries. The main customers are Amazon, All-express and online internet stores. The market is gigantic, WORK TO DO: You are a junior analyst at the Danod Bank of New York that is studying the opportunity to lend money to this start up. Explain why or why not you would finance this company by giving loans. Give appropriate arguments using the relevant ratio and financial data given in EXHIBITS 1 to 3 next page. Hint : Bankers usually request that the company has enough cash along the years, that the debt ratios are compliant with the norms in N+2 and that the profitability of the business of the start-up is aligned with the performance of its industry. EXHIBIT 1 SIMPLIFIED INCOME STATEMENT, 3 YEARS 5 of sales 100% N 1 N-2 N 3 N+1 N+2 N3 TURNOVER & SALES 749 550 1 349 250 2 398 700 100% 100% GROSS PROFIT 359 076 695 573 1 305 427 47,91% 51,5596 54,42% EBIT -49 466 111 960 508 085 -6,60% 8,30% 21,18% NET PROFIT AFTER TAX -64 716 87 885 332 329 -8,63% 6,51% 13,85% Hint: ROS (=Net profit/Sales) of the industry: 7%; Gross Margin of the industry: 49% Ph. MacBook Air Question 25 Business Plan A Winancial Forecast I EXHIBIT 2: ANUUAL CASH FLOWS STATEMENT TOTAL Cash Inflows (1) TOTAL Cash Outflows (2) N+1 1 099 550 -1 296 963 N+2 1 349 250 -1 296822 N43 2398 700 -2 104 726 (1) + (2) = (3) Balance (4) Starting Balance (3) + (4) = (5) Final Balance -197 413 65 000 - 132 413 52 428 -132413 -79 985 293 974 - 79 985 213 989 EXHIBIT 3: 1 BREAK EVEN ANALYSIS Sales turnover (1) Total Variable Cost (2) = Contribution Margin (3) = (1)-(2) Carste=121/11 N+1 749 550 350 036 399 514 52 24 Punti N+2 1349 250 558 130 791 120 CO2 N+3 2 398 700 934 275 1 464 425 61 MacBook All S Temps restant pour cet arti 00:49:07 AGU min Puan & Financial Forecast CUCCIOWE CM rate %(4) = (3)/(1) 53,30% 58,639 Total Fixed Costs (S) 464 230 691 650 Break Even Sales (6) = (5)/(4) 870 967 1 179 604 SAFETY INDEX: % of Total Sales (7) 116,20% 87,43% = (6)/(1) Hint: SAFETY index should be lower than 80% 61,05% 965 932 1582 178 65,96% KEY RATIOS N+2 N+3 HINT/NORM 80,01% 77,78% 12%/year 2,08 1,19 2 months 26% 75% Sales growth rate Inventory in months of purchases Self-Financing Equity / Equity + M-L Debts) Permanent capital composition (Gearing): M-L Debts / Equity Return On Investment (ROI) N+1 Non Available 3,56 Non available Non available Non available Non 1 Higher than 50% Should be lower than 100% 281,42% 32,71% 41% 156% 20% TORO 234 an Dawn FRES MacBook Air 2 3 5 4 6 5 & Question 952 1582 178 Business Planniol Forecast Total Fixed COSES 757 091 00 Break Even Sales (6) = (5)/(4) 870 967 1 179 604 SAFETY INDEX: % of Total Sales (7) 116,20% = (6)/(1) 87,43% Hint: SAFETY index should be lower than 80% 65,96% N+2 N 3 HINT/NORM 80,01% 77,78% 12%/year 2,08 1,19 2 months N+1 Non Available 3,56 Non available Non available 26% KEY RATIOS Sales growth rate Inventory in months of purchases Self-Financing Equity / Equity + M-L Debts) Permanent capital composition (Gearing): M-L Debts/Equity Return On Investment (ROI) Return On Equity (ROE) 75% Higher than 50% Should be lower than 100% 281,42% 32,71% 1 Non 41% 156% 20% available Non available 128.9% 83.0% 20% minimum MacBook A 4 5 6 7 e 1 & Y R N E Part 2.etion 2 (10) B Temos restant pour cette partie 00:50:03 GB Question 25 to 1 Business plans Financial Forecast TOPIC 2 : You are given the following data (Exhibits 1, 2 and 3) about Clever Drones Inc, a start-up company that is going ty manufacture and sell the latest generation of intelligent drones that are pre-programmed with an autonomy of 150 kilometers They can carry up to 10 kilograms of groceries and other goods for fast deliveries. The main customers are Amazon, All-express and online internet stores. The market is gigantic, WORK TO DO: You are a junior analyst at the Danod Bank of New York that is studying the opportunity to lend money to this start up. Explain why or why not you would finance this company by giving loans. Give appropriate arguments using the relevant ratio and financial data given in EXHIBITS 1 to 3 next page. Hint : Bankers usually request that the company has enough cash along the years, that the debt ratios are compliant with the norms in N+2 and that the profitability of the business of the start-up is aligned with the performance of its industry. EXHIBIT 1 SIMPLIFIED INCOME STATEMENT, 3 YEARS 5 of sales 100% N 1 N-2 N 3 N+1 N+2 N3 TURNOVER & SALES 749 550 1 349 250 2 398 700 100% 100% GROSS PROFIT 359 076 695 573 1 305 427 47,91% 51,5596 54,42% EBIT -49 466 111 960 508 085 -6,60% 8,30% 21,18% NET PROFIT AFTER TAX -64 716 87 885 332 329 -8,63% 6,51% 13,85% Hint: ROS (=Net profit/Sales) of the industry: 7%; Gross Margin of the industry: 49% Ph. MacBook Air Question 25 Business Plan A Winancial Forecast I EXHIBIT 2: ANUUAL CASH FLOWS STATEMENT TOTAL Cash Inflows (1) TOTAL Cash Outflows (2) N+1 1 099 550 -1 296 963 N+2 1 349 250 -1 296822 N43 2398 700 -2 104 726 (1) + (2) = (3) Balance (4) Starting Balance (3) + (4) = (5) Final Balance -197 413 65 000 - 132 413 52 428 -132413 -79 985 293 974 - 79 985 213 989 EXHIBIT 3: 1 BREAK EVEN ANALYSIS Sales turnover (1) Total Variable Cost (2) = Contribution Margin (3) = (1)-(2) Carste=121/11 N+1 749 550 350 036 399 514 52 24 Punti N+2 1349 250 558 130 791 120 CO2 N+3 2 398 700 934 275 1 464 425 61 MacBook All S Temps restant pour cet arti 00:49:07 AGU min Puan & Financial Forecast CUCCIOWE CM rate %(4) = (3)/(1) 53,30% 58,639 Total Fixed Costs (S) 464 230 691 650 Break Even Sales (6) = (5)/(4) 870 967 1 179 604 SAFETY INDEX: % of Total Sales (7) 116,20% 87,43% = (6)/(1) Hint: SAFETY index should be lower than 80% 61,05% 965 932 1582 178 65,96% KEY RATIOS N+2 N+3 HINT/NORM 80,01% 77,78% 12%/year 2,08 1,19 2 months 26% 75% Sales growth rate Inventory in months of purchases Self-Financing Equity / Equity + M-L Debts) Permanent capital composition (Gearing): M-L Debts / Equity Return On Investment (ROI) N+1 Non Available 3,56 Non available Non available Non available Non 1 Higher than 50% Should be lower than 100% 281,42% 32,71% 41% 156% 20% TORO 234 an Dawn FRES MacBook Air 2 3 5 4 6 5 & Question 952 1582 178 Business Planniol Forecast Total Fixed COSES 757 091 00 Break Even Sales (6) = (5)/(4) 870 967 1 179 604 SAFETY INDEX: % of Total Sales (7) 116,20% = (6)/(1) 87,43% Hint: SAFETY index should be lower than 80% 65,96% N+2 N 3 HINT/NORM 80,01% 77,78% 12%/year 2,08 1,19 2 months N+1 Non Available 3,56 Non available Non available 26% KEY RATIOS Sales growth rate Inventory in months of purchases Self-Financing Equity / Equity + M-L Debts) Permanent capital composition (Gearing): M-L Debts/Equity Return On Investment (ROI) Return On Equity (ROE) 75% Higher than 50% Should be lower than 100% 281,42% 32,71% 1 Non 41% 156% 20% available Non available 128.9% 83.0% 20% minimum MacBook A 4 5 6 7 e 1 & Y R N E