3 Statement Model Strictly Confidential
Table of Contents
3 Statement Model
Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Assumptions
Income statement
Revenue Growth (% Change) 15.8% 11.2% 8.4% 5.9% 5.0% 4.5% 4.0% 3.5%
Cost of Goods Sold (% of Revenue) 38.3% 40.7% 37.4% 37.4% 38.0% 37.0% 37.0% 36.0% 36.0%
Salaries and Benefits ($000's) 26,427 22,658 23,872 23,002 25,245 25,000 25,000 25,000 25,000
Rent and Overhead ($000's) 10,963 10,125 10,087 11,020 11,412 10,000 10,000 10,000 10,000
Depreciation & Amortization (% of PP&E Open Bal) 39.0% 39.9% 40.6% 41.2% 41.7% 40.0% 40.0% 40.0% 40.0%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Tax Rate (% of Earnings Before Tax) 31.2% 29.2% 28.7% 29.0% 29.1% 28.0% 28.0% 28.0% 28.0%
Balance Sheet
Accounts Receivable (Days) 18 18 18 18 18 18 18 18 18
Inventory (Days) 73 73 73 72 72 73 73 73 73
Accounts Payable (Days) 37 37 37 36 36 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Debt Issuance (Repayment) ($000's) - - (20,000) - - - - (20,000) -
Equity Issued (Repaid) ($000's) 170,000 - - - - - - - (150,000)
Income Statement
Reveneue 102,007 118,086 131,345 142,341 150,772 158,311 165,435 172,052 178,074
Cost of Goods Sold (COGS) 39,023 48,004 49,123 53,254 57,310 58,575 61,211 61,939 64,107
Gross Profit 62,984 70,082 82,222 89,087 93,462 99,736 104,224 110,113 113,967
Expenses
Salaries and Benefits 26,427 22,658 23,872 23,002 25,245 25,000 25,000 25,000 25,000
Rent and Overhead 10,963 10,125 10,087 11,020 11,412 10,000 10,000 10,000 10,000
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
Interest 2,500 2,500 1,500 900 900 900 900 900 300
Total Expenses 59,390 53,433 52,664 51,466 53,637 50,908 50,905 48,903 53,102
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825 48,827 53,319 61,210 60,865
Taxes 1,120 4,858 8,483 10,908 11,598 13,672 14,929 17,139 17,042
Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156 38,389 44,071 43,823
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Balance Sheet
Assets
Cash 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798 229,912
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807 8,158 8,485 8,782
Inventory 7,805 9,601 9,825 10,531 11,342 11,715 12,242 12,388 12,821
Property & Equipment 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505 36,703
Total Assets 226,376 239,065 240,252 267,319 295,951 331,374 370,030 394,175 288,218
Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938 6,205 6,279 6,498
Debt 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000 10,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 35,938 36,205 16,279 16,498
Shareholder's Equity
Equity Capital 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 20,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 125,436 163,825 207,897 251,720
Shareholder's Equity 172,474 184,265 205,340 232,053 260,280 295,436 333,825 377,897 271,720
Total Liabilities & Shareholder's Equity 226,376 239,065 240,252 267,319 295,951 331,374 370,030 394,175 288,218
Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Cash Flow Statement
Operating Cash Flow
Net Earnings 2,474 11,791 21,075 26,713 28,227 35,156 38,389 44,071 43,823
Plus: Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
Less: Changes in Working Capital 9,003 1,702 775 903 827 375 611 398 511
Cash from Operations 12,971 28,239 37,505 42,354 43,480 49,789 52,783 56,676 61,114
Investing Cash Flow
Investments in Property & Equipment 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Cash from Investing 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Financing Cash Flow
Issuance (repayment) of debt - - (20,000) - - - - (20,000) -
Issuance (repayment) of equity 170,000 - - - - - - - (150,000)
Cash from Financing 170,000 - (20,000) - - - - (20,000) (150,000)
Net Increase (decrease) in Cash 167,971 13,239 2,505 27,354 28,480 34,789 42,783 11,676 (98,886)
Opening Cash Balance - 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798
Closing Cash Balance 167,971 181,210 183,715 211,069 239,550 274,339 317,122 328,798 229,912
Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807 8,158 8,485 8,782
Inventory 7,805 9,601 9,825 10,531 11,342 11,715 12,242 12,388 12,821
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938 6,205 6,279 6,498
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 13,584 14,196 14,594 15,105
Change in NWC 9,003 1,702 775 903 827 375 611 398 511
Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
PPE Closing 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505 36,703
Debt & Interest Schedule
Debt Opening 50,000 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000
Issuance (repayment) - - (20,000) - - - - (20,000) -
Debt Closing 50,000 50,000 30,000 30,000 30,000 30,000 30,000 10,000 10,000
Interest Expense 2,500 2,500 1,500 900 900 900 900 900 300
2021
OK
3.0%
35.0%
25,000
10,000
40.0%
3.0%
28.0%
18
73
37
15,000
-
-
183,416
64,196
119,220
25,000
10,000
14,681
300
49,981
69,239
19,387
49,852
2021
OK
279,174
9,045
12,839
37,022
338,080
6,507
10,000
16,507
20,000
301,572
321,572
338,080
0.000
2021
OK
49,852
14,681
272
64,261
15,000
15,000
-
-
-
49,261
229,912
279,174
0.000
2021
OK
9,045
12,839
6,507
15,377
272
36,703
15,000
14,681
37,022
10,000
-
10,000
300
© Corporate Finance Institute®. All rights reserved. Historical Results
FINANCIAL STATEMENTS 2012 2013 2014
Balance Sheet Check OK OK OK
Assumptions
Income statement
Revenue Growth (% Change) 15.8% 11.2%
Cost of Goods Sold (% of Revenue) 38.3% 40.7% 37.4%
Salaries and Benefits ($000's) 26,427 22,658 23,872
Rent and Overhead ($000's) 10,963 10,125 10,087
Depreciation & Amortization (% of PP&E Open Bal) 39.0% 39.9% 40.6%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0%
Tax Rate (% of Earnings Before Tax) 31.2% 29.2% 28.7%
Balance Sheet
Accounts Receivable (Days) 18 18 18
Inventory (Days) 73 73 73
Accounts Payable (Days) 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000)
Equity Issued (Repaid) ($000's) 170,000 - -
Income Statement
Reveneue 102,007 118,086 131,345
Cost of Goods Sold (COGS) 39,023 48,004 49,123
Gross Profit 62,984 70,082 82,222
Expenses
Salaries and Benefits 26,427 22,658 23,872
Rent and Overhead 10,963 10,125 10,087
Depreciation & Amortization 19,500 18,150 17,205
Interest 2,500 2,500 1,500
Total Expenses 59,390 53,433 52,664
Earnings Before Tax 3,594 16,649 29,558
Taxes 1,120 4,858 8,483
Net Earnings 2,474 11,791 21,075
Balance Sheet
Assets
Cash 167,971 181,210 183,715
Accounts Receivable 5,100 5,904 6,567
Inventory 7,805 9,601 9,825
Property & Equipment 45,500 42,350 40,145
Total Assets 226,376 239,065 240,252
Liabilities
Accounts Payable 3,902 4,800 4,912
Debt 50,000 50,000 30,000
Total Liabilities 53,902 54,800 34,912
Shareholder's Equity
Equity Capital 170,000 170,000 170,000
Retained Earnings 2,474 14,265 35,340
Shareholder's Equity 172,474 184,265 205,340
Total Liabilities & Shareholder's Equity 226,376 239,065 240,252
Check 0.000 0.000 0.000
Cash Flow Statement
Operating Cash Flow
Net Earnings 2,474 11,791 21,075
Plus: Depreciation & Amortization 19,500 18,150 17,205
Less: Changes in Working Capital 9,003 1,702 775
Cash from Operations 12,971 28,239 37,505
Investing Cash Flow
Investments in Property & Equipment 15,000 15,000 15,000
Cash from Investing 15,000 15,000 15,000
Financing Cash Flow
Issuance (repayment) of debt - - (20,000)
Issuance (repayment) of equity 170,000 - -
Cash from Financing 170,000 - (20,000)
Net Increase (decrease) in Cash 167,971 13,239 2,505
Opening Cash Balance - 167,971 181,210
Closing Cash Balance 167,971 181,210 183,715
Check 0.000 0.000 0.000
Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567
Inventory 7,805 9,601 9,825
Accounts Payable 3,902 4,800 4,912
Net Working Capital (NWC) 9,003 10,705 11,480
Change in NWC 9,003 1,702 775
Depreciation Schedule
PPE Opening 50,000 45,500 42,350
Plus Capex 15,000 15,000 15,000
Less Depreciation 19,500 18,150 17,205
PPE Closing 45,500 42,350 40,145
Debt & Interest Schedule
Debt Opening 50,000 50,000 50,000
Issuance (repayment) - - (20,000)
Debt Closing 50,000 50,000 30,000
Interest Expense 2,500 2,500 1,500
Charts and Graphs
Earnings (2012 - 2016)
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2012 2013 2014 2015 2016
Revenue Gross Profit Earning Before Tax
Revenue 102,007 118,086 131,345
Gross Profit 62,984 70,082 82,222
Earning Before Tax 3,594 16,649 29,558
Operating Cash Flow 12,971 28,239 37,505
Investing Cash Flow (15,000) (15,000) (15,000)
Financing Cash Flow 170,000 - (20,000)
This file is for educational purposes only. E&OE
Corporate Finance Institute®
https://corporatefinanceinstitute.com/
orical Results Forecast Period
2015 2016 2017 2018 2019 2020 2021
OK OK OK OK OK OK OK
8.4% 5.9% 5.0% 4.5% 4.0% 3.5% 3.0%
37.4% 38.0% 37.0% 37.0% 36.0% 36.0% 35.0%
23,002 25,245 25,000 25,000 25,000 25,000 25,000
11,020 11,412 10,000 10,000 10,000 10,000 10,000
41.2% 41.7% 40.0% 40.0% 40.0% 40.0% 40.0%
3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
29.0% 29.1% 28.0% 28.0% 28.0% 28.0% 28.0%
18 18 18 18 18 18 18
72 72 73 73 73 73 73
36 36 37 37 37 37 37
15,000 15,000 15,000 10,000 25,000 10,000 15,000
- - - - (20,000) - -
- - - - - (150,000) -
142,341 150,772 158,311 165,435 172,052 178,074 183,416
53,254 57,310 58,575 61,211 61,939 64,107 64,196
89,087 93,462 99,736 104,224 110,113 113,967 119,220
23,002 25,245 25,000 25,000 25,000 25,000 25,000
11,020 11,412 10,000 10,000 10,000 10,000 10,000
16,544 16,080 15,008 15,005 13,003 17,802 14,681
900 900 900 900 900 300 300
51,466 53,637 50,908 50,905 48,903 53,102 49,981
37,622 39,825 48,827 53,319 61,210 60,865 69,239
10,908 11,598 13,672 14,929 17,139 17,042 19,387
26,713 28,227 35,156 38,389 44,071 43,823 49,852
211,069 239,550 274,339 317,122 328,798 229,912 279,174
7,117 7,539 7,807 8,158 8,485 8,782 9,045
10,531 11,342 11,715 12,242 12,388 12,821 12,839
38,602 37,521 37,513 32,508 44,505 36,703 37,022
267,319 295,951 331,374 370,030 394,175 288,218 338,080
5,265 5,671 5,938 6,205 6,279 6,498 6,507
30,000 30,000 30,000 30,000 10,000 10,000 10,000
35,265 35,671 35,938 36,205 16,279 16,498 16,507
170,000 170,000 170,000 170,000 170,000 20,000 20,000
62,053 90,280 125,436 163,825 207,897 251,720 301,572
232,053 260,280 295,436 333,825 377,897 271,720 321,572
267,319 295,951 331,374 370,030 394,175 288,218 338,080
0.000 0.000 0.000 0.000 0.000 0.000 0.000
26,713 28,227 35,156 38,389 44,071 43,823 49,852
16,544 16,080 15,008 15,005 13,003 17,802 14,681
903 827 375 611 398 511 272
42,354 43,480 49,789 52,783 56,676 61,114 64,261
15,000 15,000 15,000 10,000 25,000 10,000 15,000
15,000 15,000 15,000 10,000 25,000 10,000 15,000
- - - - (20,000) - -
- - - - - (150,000) -
- - - - (20,000) (150,000) -
27,354 28,480 34,789 42,783 11,676 (98,886) 49,261
183,715 211,069 239,550 274,339 317,122 328,798 229,912
211,069 239,550 274,339 317,122 328,798 229,912 279,174
0.000 0.000 0.000 0.000 0.000 0.000 0.000
7,117 7,539 7,807 8,158 8,485 8,782 9,045
10,531 11,342 11,715 12,242 12,388 12,821 12,839
5,265 5,671 5,938 6,205 6,279 6,498 6,507
12,382 13,210 13,584 14,196 14,594 15,105 15,377
903 827 375 611 398 511 272
40,145 38,602 37,521 37,513 32,508 44,505 36,703
15,000 15,000 15,000 10,000 25,000 10,000 15,000
16,544 16,080 15,008 15,005 13,003 17,802 14,681
38,602 37,521 37,513 32,508 44,505 36,703 37,022
30,000 30,000 30,000 30,000 30,000 10,000 10,000
- - - - (20,000) - -
30,000 30,000 30,000 30,000 10,000 10,000 10,000
900 900 900 900 900 300 300
Cash Flows (2012 - 2016)
$200,000
$150,000
$100,000
$50,000
$0
2012 2013 2014 2015 2016
-$50,000
Operating Investing FInancing
142,341 150,772
89,087 93,462
37,622 39,825
42,354 43,480
(15,000) (15,000)
- -
