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Fin370 Week 4

In:

Submitted By Meylinnn
Words 291
Pages 2
CH 10
Integrative Problem: Caledonia
CAPEX $8,000,000
Straight line depreciation
Depreciation expense per year $1,600,000
Pro Forma 1 Pro Forma 2 Pro Forma 3
Sales $21,000,000 Sales $36,000,000 Sales $42,000,000
Variable Cost 12,600,000 Variable Cost 21,600,000 Variable Cost 25,200,000
Fixed Cost 200,000 Fixed Cost 200,000 Fixed Cost 200,000
Depreciation 1,600,000 Depreciation 1,600,000 Depreciation 1,600,000
EBIT 6,600,000 EBIT 12,600,000 EBIT 15,000,000
Tax(34%) 2,244,000 Tax(34%) 4,284,000 Tax(34%) 5,100,000
Net Income $4,356,000 Net Income $8,316,000 Net Income $9,900,000
OCF 1= $5,956,000 OCF 2= $9,916,000 OCF 3= $11,500,000
Pro Forma 4 Pro Forma 5
Sales $24,000,000 Sales $15,600,000
Variable Cost 14,400,000 Variable Cost 10,800,000
Fixed Cost 200,000 Fixed Cost 200,000
Depreciation 1,600,000 Depreciation 1,600,000
EBIT 7,800,000 EBIT 3,000,000
Tax(34%) 2,652,000 Tax(34%) 1,020,000
Net Income $5,148,000 Net Income $1,980,000
OCF 4= $6,748,000 OCF 5= $3,580,000
Year
0 1 2 3 4 5
OCF 0 $5,956,000 $9,916,000 $11,500,000 $6,748,000 $3,580,000
Capex -8,000,000 0 0 0 0 0
Changes in NWC -100,000 -2,100,000 -3,600,000 -4,200,000 -2,400,000 12,400,000
Total ($8,100,000) $3,856,000 $6,316,000 $7,300,000 $4,348,000 $15,980,000
NCF=

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