Trinity Corp. Valuation Actual Projected ---- 30.0% Percent Sales Increase------> 30.0% 30.0% 7.0% 3% 2019 Sales 100.0% -50.0% 50.0% -2.0% 2019 2020 2021 2022 2023 $ 20,000.00 $ 26,000.00 $ 33,800.00 $ 43,940.00 $ 47,015.80 $(10,000.00) $(13,000.00) $ (16,900.00) $ (21,970.00) $ (23,507.90) $ 10,000.00 $ 13,000.00 $ 16,900.00 $ 21,970.00 $ 23,507.90 $ (7,500.00) $ (9,187.50) $(11,254.69) $(13,786.99) $(14,510.81) $ (400.00) $ (520.00) $ (676.00) $ (878.80) $ (940.32) $ 2,100.00 $ 3,292.50 $ 4,969.31 $ 7,304.21 $ 8.056.77 $ (100.00) $ (130.00) $ (169.00) $ (219.70) $ (235.08) $ 2,000.00 $ 3,162.50 $ 4,800.31 $ 7,084.51 $ 7,821.70 $ (800.00) $ (1.265.00) $ (1,920.12) $ (2,833.80) $ (3,128.68) $ 1,200.00 $ 1,897.50 $ 2,880.19 $ 4,250.71 $ 4,693.02 -0.5% Income Statements Sales Cost of goods sold Gross profit Operating expenses Depreciation EBIT Interest EBT Taxes (40%) Net income Balance Sheets Cash - Marketable Securities Accounts receivable Inventories Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets Accounts payable Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total equity Total liabilities & equity 5.0% $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 - $ (52.50) $ 292.69 $ 1,247.89 $ 4,941.27 10.0% $ 2,000.00 $ 2,600.00 $ 3.380.00 $ 4.394.00 $ 4.701.58 10.0% $ 2,000.00 $ 2,600.00 $ 3,380.00 $ 4,394.00 $ 4,701.58 $ 5,000.00 $ 6,447.50 $ 8,742.69 $ 12,232.89 $ 16,695.22 $ 5,400.00 $ 7,420.00 $ 10,046.00 $ 13,459.80 $ 15,169.07 $ (400.00) $ (920.00) $ (1,596.00 $ 2.474.80 $ 3,415.12 25.0% $ 5,000.00 $ 6,500.00 $ 8,450.00 $ 10,985.00 $ 11,753.95 50.0% $ 10.000.00 $ 12,947.50 $ 17,192.69 $ 23,217.89 $ 28,449.17 7.5% $ 1,500.00 $ 1,950.00 $ 2,535.00 $ 3,295.50 $ 3,526.19 5.0% $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 $ 2,500.00 $ 3,250.00 $ 4,225.00 $ 5,492.50 $ 5,876.98 0.1 $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 1.200.00 $ 3,097.50 $ 5.977.69 $ 10.228.39 $ 14,921.41 $ 6,500.00 $ 8,397.50 $ 11,277.69 $ 15,528.39 $ 20,221.41 $ 10,000.00 $ 12,947.50 $ 17,192.69 $ 23,217.89 $ 28,449.17 2020 2021 2022 2023 Work Sheet for Estimating Free Cash Flows to Firm: 2019 Income Statement Flows: NOPAT Depreciation Required Net Working Capital: Required Cash - Accounts Receivable Inventories - Accounts payable Accrued liabilities Required NWC - Increase in Required NWC 1000 2000 2000 -1500 -1000 2500 5000 Capital Expenditures (CAPEX): Net fixed assets Increase in net fixed assets Depreciation Increase in gross fixed assets Trinity Corp. Valuation Actual Projected ---- 30.0% Percent Sales Increase------> 30.0% 30.0% 7.0% 3% 2019 Sales 100.0% -50.0% 50.0% -2.0% 2019 2020 2021 2022 2023 $ 20,000.00 $ 26,000.00 $ 33,800.00 $ 43,940.00 $ 47,015.80 $(10,000.00) $(13,000.00) $ (16,900.00) $ (21,970.00) $ (23,507.90) $ 10,000.00 $ 13,000.00 $ 16,900.00 $ 21,970.00 $ 23,507.90 $ (7,500.00) $ (9,187.50) $(11,254.69) $(13,786.99) $(14,510.81) $ (400.00) $ (520.00) $ (676.00) $ (878.80) $ (940.32) $ 2,100.00 $ 3,292.50 $ 4,969.31 $ 7,304.21 $ 8.056.77 $ (100.00) $ (130.00) $ (169.00) $ (219.70) $ (235.08) $ 2,000.00 $ 3,162.50 $ 4,800.31 $ 7,084.51 $ 7,821.70 $ (800.00) $ (1.265.00) $ (1,920.12) $ (2,833.80) $ (3,128.68) $ 1,200.00 $ 1,897.50 $ 2,880.19 $ 4,250.71 $ 4,693.02 -0.5% Income Statements Sales Cost of goods sold Gross profit Operating expenses Depreciation EBIT Interest EBT Taxes (40%) Net income Balance Sheets Cash - Marketable Securities Accounts receivable Inventories Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets Accounts payable Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total equity Total liabilities & equity 5.0% $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 - $ (52.50) $ 292.69 $ 1,247.89 $ 4,941.27 10.0% $ 2,000.00 $ 2,600.00 $ 3.380.00 $ 4.394.00 $ 4.701.58 10.0% $ 2,000.00 $ 2,600.00 $ 3,380.00 $ 4,394.00 $ 4,701.58 $ 5,000.00 $ 6,447.50 $ 8,742.69 $ 12,232.89 $ 16,695.22 $ 5,400.00 $ 7,420.00 $ 10,046.00 $ 13,459.80 $ 15,169.07 $ (400.00) $ (920.00) $ (1,596.00 $ 2.474.80 $ 3,415.12 25.0% $ 5,000.00 $ 6,500.00 $ 8,450.00 $ 10,985.00 $ 11,753.95 50.0% $ 10.000.00 $ 12,947.50 $ 17,192.69 $ 23,217.89 $ 28,449.17 7.5% $ 1,500.00 $ 1,950.00 $ 2,535.00 $ 3,295.50 $ 3,526.19 5.0% $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 $ 2,500.00 $ 3,250.00 $ 4,225.00 $ 5,492.50 $ 5,876.98 0.1 $ 1,000.00 $ 1,300.00 $ 1,690.00 $ 2,197.00 $ 2,350.79 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 5,300.00 $ 1.200.00 $ 3,097.50 $ 5.977.69 $ 10.228.39 $ 14,921.41 $ 6,500.00 $ 8,397.50 $ 11,277.69 $ 15,528.39 $ 20,221.41 $ 10,000.00 $ 12,947.50 $ 17,192.69 $ 23,217.89 $ 28,449.17 2020 2021 2022 2023 Work Sheet for Estimating Free Cash Flows to Firm: 2019 Income Statement Flows: NOPAT Depreciation Required Net Working Capital: Required Cash - Accounts Receivable Inventories - Accounts payable Accrued liabilities Required NWC - Increase in Required NWC 1000 2000 2000 -1500 -1000 2500 5000 Capital Expenditures (CAPEX): Net fixed assets Increase in net fixed assets Depreciation Increase in gross fixed assets