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CASH FLOW ANALYSIS

Beginning cash balance


Cash receipts
Total cash available
Cash disbursements:
Material purchases
Out-of-pocket expenses
Interest
Capital expenditure
Pay back stockholder loans
Total cash disbursements
Cash excess (deficiency)
Financing:
Loans
Loan Repayments
Total financing
Ending cash balance
Loan Balance
Collateral base:
Accounts receivable
Inventory
Total

April-May Jun
1978
1978
156
272
1,463
500
1,619
772

375
802
43
127
1,347
272

251
500
24
50

Jul
1978
250
250

Aug
1978
450
450

Sep
1978
588
588

Oct
1978
1,000
1,000

330
621
29
65

433
714
36
95

208
661
45
78

208
622
54
69

992
(404)

953
47

825 1,045 1,278


(53) (795) (828)
53

795

828

404

Nov
1978
1,054
1,054

431
634
56
62
841
2,024
(970)
970

47
(47)
-

272

53
-

795
-

828
-

404
-

970
-

1,547

1,600

2,395

3,223

3,627

3,580

4,550

310
1,058
1,368

1,176
927
2,103

2,564
844
3,408

3,206
656
3,862

3,794
529
4,323

3,862
554
4,416

Dec
1978
2,518
2,518

Jan
1979
2,300
2,300

Feb
1979
1,000
1,000

Mar
1979
500
500

252
551
58
48

241
476
43
46

201
514
24
39

201
389
19
37

909
1,609

806
1,494

778
222

646
(146)
146

1,609
1,494
(1,609) (1,494)
-

222
(222)
-

146
-

2,941

1,447

1,225

1,371

2,730
477
3,207

1,321
700
2,021

817
905
1,722

626
1,119
1,745

Assumptions:
Sales growth rate
COGS/Sales
Operating expense/Sales
Interest expense/Sales
Tax rate

20%
53.26%
28.43%
5.19%
40%
Hanson Industries
Income Statement (1979-1983)
(in $000)
1979

Revenue
COGS
Gross Margin
Less: Operating Expenses
Operating Earnings
Less: Interest Expense
Income Before Taxes
Taxes
Net Income

Assumptions:
Account Receivables/Sales
Inventory/Sales
Account Payable in 1979
Account Payable/Sales (1980-1983)
Prepaid expenses/Sales
Annual capital expenditures
Depreciation

$
$
$
$
$
$
$
$
$

13,095
6,974
6,121
3,723
2,398
680
1,719
687
1,031

1980
$
$
$
$
$
$
$
$
$

15,714
8,369
7,345
4,467
2,878
816
2,062
824.93
1,237

1981
$
$
$
$
$
$
$
$
$

18,857
10,042
8,814
5,361
3,453
979
2,475
990
1,485

15.50%
20.00%
$ 944
10.13%
2.68%
$ 500
$ 500
Hanson Ski Industries
Balance Sheet (1979-1983)
(in $000)
1979

Current assets:
Cash
Accounts receivable

$
$

104%
598 $
2,030 $

1980
45%
1,217 $
2,436 $

1981
37%
1,767
2,923

Inventories
Prepaid expenses
Total current assets
Fixed assets:
Property, plant & equipment
Less: Accumulated depreciation
Net fixed assets
Total assets
Liabilities:
Accounts payable
Notes payable
Total liabilities
Stockholder's equity:
Capital stocks
Retained earnings
Total equity
Total liabilities & Stockholder's Equity

Net working capital


Change in working capital
Less: Change in Retained earnings
Outside funds needed

1978
$ 2,603

$
$
$

2,619
351
5,598

$
$
$

3,143
421
7,217

$
$
$

3,771
505
8,967

$
$
$
$

2,638
500
2,138
7,736
21%

$
$
$
$

2,638
500
2,138
9,355
19%

$
$
$
$

2,638
500
2,138
11,105
19%

$
$
$

944
4,005
4,949

$
$
$

1,326
4,005
5,331

$
$
$

1,591
4,005
5,596

$
$
$
$

1,354
1,433
2,787
7,736

$
$
$
$

1,354
2,671
4,025
9,355

$
$
$
$

1,354
4,155
5,509
11,105

1979
$
4,056

1980
$
4,674

$
$
$

$
$
$

1,453
1,031
422

1981
$
5,608

618 $
1,237 $
(619) $

935
1,485
(550)

1982
$
$
$
$
$
$
$
$
$

22,628
12,051
10,577
6,433
4,144
1,174
2,970
1,188
1,782

1983
$
$
$
$
$
$
$
$
$

1982

$
$

33%
2,427 $
3,507 $

27,154
14,461
12,693
7,720
4,973
1,409
3,564
1,425
2,138

1983
55%
3,219
4,209

$
$
$

4,526
606
11,066

$
$
$

5,431
728
13,586

$
$
$
$

2,638
500
2,138
13,204
19%

$
$
$
$

2,638
500
2,138
15,724

$
$
$

1,909
4,005
5,914

$
$
$

2,291
4,005
6,296

$
$
$
$

1,354
5,937
7,291
13,206

$
$
$
$

1,354
8,075
9,429
15,726

1982
$
6,730
$
$
$

19%

1983
$
8,076

1,122 $
1,782 $
(660) $

1,346
2,138
(792)

Assumptions:
Sales growth rate
20%
COGS/Sales
53.26%
Operating expense/Sales 28.43%
Interest expense/Sales
5.19%
Tax rate
40%

Assumptions:
Account Receivables/Sales
15.50%
Inventory/Sales
20.00%
Account Payable in 1979
$ 944
Account Payable/Sales (1980-1983) 10.13%
Prepaid expenses/Sales
2.68%
Annual capital expenditures
$ 500
Depreciation
$ 500

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