New Heritage Doll Company Solution

3448 Words Nov 20th, 2014 14 Pages
2014,00 2010,00 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs Depreciation Total Production Costs Selling, General & Administrative Total Operating Expenses 0,00 1250,00 1250,00 575,00 2035,00 152,20 2762,20 1155,00 3917,20 575,00 3403,80 152,20 4131,00 1735,00 5866,00 586,50 4290,60 152,20 5029,30 2102,20 7131,50 598,20 4669,00 152,20 5419,40 2270,30 7689,70 610,10 5078,40 164,40 5852,90 2452,00 8304,90 622,30 5521,30 177,50 6321,10 2648,10 8969,20 634,80 6000,30 191,70 6826,80 2860,00 9686,80 647,50 6518,50 207,10 7373,10 3088,80 10461,90 660,40 7078,80 223,60 7962,80 3335,90 11298,70 673,70 7684,70 241,50 8599,90 3602,80 12202,70 Operating Profit Operating Profit Operating …show more content…
11,00 -557,18 2012,00 168,99 2013,00 682,19 2014,00 540,96 2015,00 583,29 2016,00 629,99 2017,00 680,31 2018,00 734,70 2019,00 793,46 2020,00 17202,27

Payback Analysis
Cash flows Cumulative cash flow Payback period 5-year Cumulative EBITDA 2010,00 -3020,00 -3020,00 2011,00 -557,18 -3577,18 2012,00 168,99 -3408,20 2013,00 682,19 -2726,01 2014,00 540,96 -2185,05 2015,00 583,29 -1601,76 2016,00 629,99 -971,77 2017,00 680,31 -291,46 2018,00 2019,00 734,70 793,46 443,24 7,40 years 2020,00 17202,27

6522,20

Profitability Index
NPV/Initial Investment 2,37 NOTES: Cash (Net Working Capital) = Minimum Cash Balance as % of Sales x Revenue = 0.03 x 4,500 = 135 Account Receivable (Net Working Capital) = Days Sales Outstanding / 365 x Revenue = 59.17 / 365 x 4,500 = 729,5 Inventories (Net Working Capital) = Total Production Costs / Inventory Turnover = 2762,20 / 7.68 = 359.7 Accounts Payable (Net Working Capital) = Days Payable Outstanding / 365 x (Total Production Expenses - Depreciation) = 30.76 / 365 x (3917.20 - 152.20) = 317.3 Corporate tax rate, t = 40% EBIT = Operating Profit

-2,8 mean std dev

0,00913 0,16402 -0,459256

2010 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Additional development costs (IT personnel) Variable Production Costs Depreciation Total Production Costs Selling, General & Administrative Total Operating Expenses 0 1.201 1.201

2011 0

2012 6.000 NA

2013 14.360 139,3%

2014 20.222 40,8%

2015

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