596
Table 15.3:Pro Forma P&L statements
time (year) 0 1 2 3 4 5
Investments
Land 5
Plant and Equipment 10
Training 5
Upfront License 2
P&L Projections (1999 prices)
Revenue:
Gross Sales 0 10 17 22 24 25
<excise tax> 0 0.3 0.51 0.66 0.72 0.75
<rebates> 0 0.5 0.85 1.1 1.2 1.25
<provisions bad debt> 0 0.15 0.255 0.33 0.36 0.375
Net Sales 0 9.05 15.385 19.91 21.72 22.625
Cost:
Variable Production Costs 0 4 6 7 8 8.5
Depreciation P&E 2.5 2.5 2.5 2.5
Depreciation Training 2.5 2.5
Overhead 1 2 2.5 3 3 3
License: Upfront Fee 2
Royalties 0 0.46 0.782 1.012 1.104 1.15
Interest Paid 1.6 1.6 1.28 0.96 0.64 0.32
Profit Before Tax -9.6 -4.01 2.323 5.438 8.976 9.655
Tax computations
Cumulative profits -9.6 -13.61 -11.287 -5.849 3.127 12.782
Losses carry Back -9.6 -13.61 -11.287 -5.849 0 0
Taxable income 0 0 0 0 3.127 9.655
Taxes 0 0 0 0 1.2508 3.862
Profit After Tax -9.6 -4.01 2.323 5.438 7.7252 5.793
Cash flows to shareholders
Add Back Depreciation 5 5 2.5 2.5 0 0
<Amortization Of Loan> 0 4 4 4 4 4
Cash Flow -4.6 -3.01 0.823 3.938 3.7252 1.793- ProjectedP/Lare based on the following figures listed below and the following
addenda:- Sales in the first year start as of 1/1/2001. Gross sales is computed
as (volumes sold)×(list prices). The list prices include the excise tax
(3%), which must be deducted for the purpose of profit calculations. Also
deducted is an estimated 5% representing rebates for large orders, and a
provision for non-performing receivables estimated at 1.5%. The result
is net sales income. Customers obtain a 30-day credit period. - Production costs (variable, depreciation, overhead) are as shown in the
table. Training can be depreciated over two years, and equipment over
four years, starting in year zero. Depreciation has to be linear. - Know-how and financial charges. There is a 2m upfront licensing fee and
- Sales in the first year start as of 1/1/2001. Gross sales is computed