Question 11 10 pts What is the Cash Flow From Assets (CFFA) in 2017 for Jack's Food Products? $2,294,000 O $1.756,005 O $1,585,402 $1.349,070 Question 12 10 pts The Bonds for Jack's Food Products are premium bonds, True False H C D B E BACKS FOOD PRODUCTS Income Statement Historical and Proforma international Expansion CAGR Rent Salaries, Waces Utirties Other Total Operating penses Operating Profit $ $ $ 5 $ Historie - Actual 2016 2017 325.000 225.000 $ 30340835 3.167.1995 172.5655 1820545 521.5895 500127 1405 4.703,22 2,615.9265 201505 2018 225.0005 3.209.8543 181.500 5 542,995 4817735 3.36445 2015e 200,000 $ 3.450.000 5 185,000 5 520.0005 5,121.500 5 2003 1 Proforma 2020 2021 240,000 5 240.000 3.500,000 $ 3.650.000 190.000 190,000 $ S80,000 $ 620,000 5,200,000 $ 54210005 3,992,000 5 4.329.000 3 20 2022 240.000 0.000 206.000 640.000 5,614.000 4486.000 5 WHERE MO Non-Operating income (Expenses interest Pre Tax Net Income Taxes Net Income 5 5 5 5 291.0005 2.321,965 76705 1.554033 S 294,000 2.500 510 S 288,222 5 1,7114383 264.000 3.075.44HS 675.149 2400,25$ 2940005 3.078.000 666,3305 231605 2M0005 3.DOOS 776.500 5 2.921ATOS 214.000 5 4,025.000 52,150 $ 3.167650S 294,000 4.192.000 880,120 301.560 LITOA TERMINAL VALUE 2 4 5 . 32 Cash Flow From At Calculations Operating Cash Flow IOCF Net Captur Spending Ending NwC Beginning wc Changin WorldCat CHA + Discounted Cash Pow 2019 2022) 40 JACKS FOOD PRODUCTS Balance Sheet Historical and Proforma 5 3 3 $ $ 5 Assets Cash Accounts Receivable Inventory TotalCurrent Assets Net Fred Assets Total Assets Histork - Actual 2016 2017 5101155 1,179,7243 452,453 216.1415 1,611.0145 1A50,7245 2.606.0775 2,8563395 2.97545 31154 569315 S.968,2035 2018 1,5780155 312004 1.663,122 3.552,345 3.070819 6.622.9605 2015 0.03695 101.313 S 1.599.327 5 4017435 3,127.99 $ 7,165,0285 Proforma 2020 2021e 2014675 2,1346405 5006215 598,127 S 1.745.3215 1.799.4005 429395 4527,1675 9 209,7345 3274035 7504.735 7,814,5755 2022 2.207,126 604889 150,900 4,662,915 3,109,50: 7812410 5 $ 3 SS1119 $ 5 12 13 14 15 16 17 10 19 20 21 22 23 24 25 26 Lisbres Accounts Payable Accrued Liabiti TotalCurrent Labs Boods 16.75%) Totalles 5 427.5055 474205 42.215 2.500.000 2.9747215 1241775 4900 400DNS 2.500.000 $ 2.000.0775 3003035 1767 3070105 2.500.000 27050 412.5 24.500 5 4374985 2.500.000 5 2.93749 25 1615 55522 2.500.0005 OSS.223 5 GOLO 405406 661116 2.500.000 3,1641 67797605 3.500.000 1,17297615 5 Equity Preferred tauty i 35%) Common Stock Hanne Lane Total Buty 100.000 100.000 3 $ 1 5 1.500.000 100.000 $ L2105 7.629210 1.300.000 100.000 1459 3165 3.05926 1.500.000 100.000 2.1959105 2005 1.500.000 100.000 2.22.3305 4227530 1.300.000 500.000 2.9505 90S 1.500.000 500 000 30366005 163,000 $ ONDON ON c D 1 2 JACKS FOCO PRODUCTS WACC 4 5 6 7 Common fauty Industry lieta (Proxy for the Company's Beta) Current Rak-Free Rate Market Premium Number of Common Equity Shares Outstanding Current Price Per Common Coulty Share Total Value of Common Louity Expected Equity Return for cost of equity capital 129 20% 7.25% 1000,000 16.15 9 $ 10 11 12 5 HUN 2.500.000 550.000 $100 par au bord brother 1300 bon, Canto matury, M. 5. Then the VIM 14 Cost of Preferred Equty 15 Totul Value of Preferred Lauty 16 17 Current Bondeve ter bond) 18 Total Vale of Bonds 19 Cost of Debt Bonds 20 21 WARGA 22 Total pri Velo 23 Weght of Comanty 24 Weight of Plered touky 25 Wehtoons 26 We Are Como Capital 20 25 10 com EVA 31 DOON AINEN www.wine bom the comment 13 2 OD PRODUCIS Ice Cream Opportunity 3 4 TERMINAL VALUE S 6 7 8 9 10 11 12 13 14 15 16 17 Revenue COGS Gross Margin Increase in Advertising and Marketing Increase in Salaries & Waxes Increase in Uit Increase in Other Expenses Tax Effect of Depreciation on Capbx Capital Cost of New Equioment CITA 2019 $ 500,000 $ $ 125,000 $ $ 375,000 $ $ 145,000) S $ (120,000) $ 19,000) $ $ 17.000) $ S 195,000 $ $6,500,000) 5 $ 10,111,000) 3 2020 1,250,000 $ 312,500S 937.500 5 150,000) (160,000) (13,000) 17.000) $ 195,000 $ 5 902,500 $ 2021 1.500,000 $ 375,000 $ 1.125,000 $ (55,000) $ (170,000) S (14,500) 17,000) $ 195.000 $ 1,073,500 5 2022 1,750,000 437,500 1,312,500 (60,000) (180,000) (16,000) 17.000) 195,000 1,244,500 5 6,844,750 NPV IRR 19 20 21 B G I 1 2. 3 HACK'S FOOD PRODUCTS Toggles and Assumptions 4 5 6 7 B 9 10 11 12 13 14 15 16 Increased Revenue from Ice Cream Business Increased COGS from Ice Cream Business Increase in Advertising and Marketing increase in Salaries & Wages Increase in Uttes Increase in Other Expenses Capital Cost of New Equipment Deprecation of New Equipment (assuming 7 Year SL) Assumed Tax Rate Terminal Mutice $ $ $ $ $ 5 2019 500.000 125,000 $ 45.000 120.000 9.000 $ 7.000 5.500.000 9255715 21% 5.5 2020 1.250,000 $ 312.500 5 50.0005 160,000 $ 13,000 $ 7.000$ 2021 1.500.000 375,000 $ 55.000 $ 170.000 $ 14.500 5 7,000 5 2022 1,750.000 497.500 60,000 180,000 16,000 7.000 $ $ 928 55 928,5715 928.571 CES FOOD PRODUCTS stios 2022e 2013 2016 NA H-Actual 2017 ES 51: 2015 844 560 Proforma 2000 2021 621 5653 5 SKU 55.90 Key Ratios ventory Turnove ventory Period cevabes Turnov Beceivables Period Operating Cycle NA NA 83 S. 301 221 NA 2 1.6 NA 2515 Payables Tumove Paybube Period Cash Cycle 5037 26 NA 5201 Question 11 10 pts What is the Cash Flow From Assets (CFFA) in 2017 for Jack's Food Products? $2,294,000 O $1.756,005 O $1,585,402 $1.349,070 Question 12 10 pts The Bonds for Jack's Food Products are premium bonds, True False H C D B E BACKS FOOD PRODUCTS Income Statement Historical and Proforma international Expansion CAGR Rent Salaries, Waces Utirties Other Total Operating penses Operating Profit $ $ $ 5 $ Historie - Actual 2016 2017 325.000 225.000 $ 30340835 3.167.1995 172.5655 1820545 521.5895 500127 1405 4.703,22 2,615.9265 201505 2018 225.0005 3.209.8543 181.500 5 542,995 4817735 3.36445 2015e 200,000 $ 3.450.000 5 185,000 5 520.0005 5,121.500 5 2003 1 Proforma 2020 2021 240,000 5 240.000 3.500,000 $ 3.650.000 190.000 190,000 $ S80,000 $ 620,000 5,200,000 $ 54210005 3,992,000 5 4.329.000 3 20 2022 240.000 0.000 206.000 640.000 5,614.000 4486.000 5 WHERE MO Non-Operating income (Expenses interest Pre Tax Net Income Taxes Net Income 5 5 5 5 291.0005 2.321,965 76705 1.554033 S 294,000 2.500 510 S 288,222 5 1,7114383 264.000 3.075.44HS 675.149 2400,25$ 2940005 3.078.000 666,3305 231605 2M0005 3.DOOS 776.500 5 2.921ATOS 214.000 5 4,025.000 52,150 $ 3.167650S 294,000 4.192.000 880,120 301.560 LITOA TERMINAL VALUE 2 4 5 . 32 Cash Flow From At Calculations Operating Cash Flow IOCF Net Captur Spending Ending NwC Beginning wc Changin WorldCat CHA + Discounted Cash Pow 2019 2022) 40 JACKS FOOD PRODUCTS Balance Sheet Historical and Proforma 5 3 3 $ $ 5 Assets Cash Accounts Receivable Inventory TotalCurrent Assets Net Fred Assets Total Assets Histork - Actual 2016 2017 5101155 1,179,7243 452,453 216.1415 1,611.0145 1A50,7245 2.606.0775 2,8563395 2.97545 31154 569315 S.968,2035 2018 1,5780155 312004 1.663,122 3.552,345 3.070819 6.622.9605 2015 0.03695 101.313 S 1.599.327 5 4017435 3,127.99 $ 7,165,0285 Proforma 2020 2021e 2014675 2,1346405 5006215 598,127 S 1.745.3215 1.799.4005 429395 4527,1675 9 209,7345 3274035 7504.735 7,814,5755 2022 2.207,126 604889 150,900 4,662,915 3,109,50: 7812410 5 $ 3 SS1119 $ 5 12 13 14 15 16 17 10 19 20 21 22 23 24 25 26 Lisbres Accounts Payable Accrued Liabiti TotalCurrent Labs Boods 16.75%) Totalles 5 427.5055 474205 42.215 2.500.000 2.9747215 1241775 4900 400DNS 2.500.000 $ 2.000.0775 3003035 1767 3070105 2.500.000 27050 412.5 24.500 5 4374985 2.500.000 5 2.93749 25 1615 55522 2.500.0005 OSS.223 5 GOLO 405406 661116 2.500.000 3,1641 67797605 3.500.000 1,17297615 5 Equity Preferred tauty i 35%) Common Stock Hanne Lane Total Buty 100.000 100.000 3 $ 1 5 1.500.000 100.000 $ L2105 7.629210 1.300.000 100.000 1459 3165 3.05926 1.500.000 100.000 2.1959105 2005 1.500.000 100.000 2.22.3305 4227530 1.300.000 500.000 2.9505 90S 1.500.000 500 000 30366005 163,000 $ ONDON ON c D 1 2 JACKS FOCO PRODUCTS WACC 4 5 6 7 Common fauty Industry lieta (Proxy for the Company's Beta) Current Rak-Free Rate Market Premium Number of Common Equity Shares Outstanding Current Price Per Common Coulty Share Total Value of Common Louity Expected Equity Return for cost of equity capital 129 20% 7.25% 1000,000 16.15 9 $ 10 11 12 5 HUN 2.500.000 550.000 $100 par au bord brother 1300 bon, Canto matury, M. 5. Then the VIM 14 Cost of Preferred Equty 15 Totul Value of Preferred Lauty 16 17 Current Bondeve ter bond) 18 Total Vale of Bonds 19 Cost of Debt Bonds 20 21 WARGA 22 Total pri Velo 23 Weght of Comanty 24 Weight of Plered touky 25 Wehtoons 26 We Are Como Capital 20 25 10 com EVA 31 DOON AINEN www.wine bom the comment 13 2 OD PRODUCIS Ice Cream Opportunity 3 4 TERMINAL VALUE S 6 7 8 9 10 11 12 13 14 15 16 17 Revenue COGS Gross Margin Increase in Advertising and Marketing Increase in Salaries & Waxes Increase in Uit Increase in Other Expenses Tax Effect of Depreciation on Capbx Capital Cost of New Equioment CITA 2019 $ 500,000 $ $ 125,000 $ $ 375,000 $ $ 145,000) S $ (120,000) $ 19,000) $ $ 17.000) $ S 195,000 $ $6,500,000) 5 $ 10,111,000) 3 2020 1,250,000 $ 312,500S 937.500 5 150,000) (160,000) (13,000) 17.000) $ 195,000 $ 5 902,500 $ 2021 1.500,000 $ 375,000 $ 1.125,000 $ (55,000) $ (170,000) S (14,500) 17,000) $ 195.000 $ 1,073,500 5 2022 1,750,000 437,500 1,312,500 (60,000) (180,000) (16,000) 17.000) 195,000 1,244,500 5 6,844,750 NPV IRR 19 20 21 B G I 1 2. 3 HACK'S FOOD PRODUCTS Toggles and Assumptions 4 5 6 7 B 9 10 11 12 13 14 15 16 Increased Revenue from Ice Cream Business Increased COGS from Ice Cream Business Increase in Advertising and Marketing increase in Salaries & Wages Increase in Uttes Increase in Other Expenses Capital Cost of New Equipment Deprecation of New Equipment (assuming 7 Year SL) Assumed Tax Rate Terminal Mutice $ $ $ $ $ 5 2019 500.000 125,000 $ 45.000 120.000 9.000 $ 7.000 5.500.000 9255715 21% 5.5 2020 1.250,000 $ 312.500 5 50.0005 160,000 $ 13,000 $ 7.000$ 2021 1.500.000 375,000 $ 55.000 $ 170.000 $ 14.500 5 7,000 5 2022 1,750.000 497.500 60,000 180,000 16,000 7.000 $ $ 928 55 928,5715 928.571 CES FOOD PRODUCTS stios 2022e 2013 2016 NA H-Actual 2017 ES 51: 2015 844 560 Proforma 2000 2021 621 5653 5 SKU 55.90 Key Ratios ventory Turnove ventory Period cevabes Turnov Beceivables Period Operating Cycle NA NA 83 S. 301 221 NA 2 1.6 NA 2515 Payables Tumove Paybube Period Cash Cycle 5037 26 NA 5201