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Teuer Furniture (A) : Group 9 Aman Amit Jain - Shivram - Satvik - Kamaljeet

The document outlines the process for preparing income statements, balance sheets, and free cash flows for Teuer Furniture over multiple years. It describes how sales, costs of goods sold, expenses, assets, liabilities, capital expenditures, depreciation, taxes, and cash flows will be calculated and projected. The projections will then be rolled up and consolidated into pro forma income statements, balance sheets, and a calculation of free cash flows, discounted terminal value and share value over time.

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Kuldeep Barwal
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396 views7 pages

Teuer Furniture (A) : Group 9 Aman Amit Jain - Shivram - Satvik - Kamaljeet

The document outlines the process for preparing income statements, balance sheets, and free cash flows for Teuer Furniture over multiple years. It describes how sales, costs of goods sold, expenses, assets, liabilities, capital expenditures, depreciation, taxes, and cash flows will be calculated and projected. The projections will then be rolled up and consolidated into pro forma income statements, balance sheets, and a calculation of free cash flows, discounted terminal value and share value over time.

Uploaded by

Kuldeep Barwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Teuer Furniture (A)

Group 9
Aman Amit Jain | Shivram | Satvik | Kamaljeet
INCOME STATEMENT PREPARATION
 Sales: In terms of Previous year sales growing at (Constant rate of 0.3%+ Furniture sales growth @3% per
year)
 For 2013 : (6034*(1+0.3%)*(1+3%)=6235
 CGS: In terms of Sales growing at 39.4%
 Sales* Average of forecast percentage CGS
 SGA: In terms of Sales growing at 13.6%
 Sales *Average of forecast percentage SGA
 Advertising: In terms of Sales growing at 7.2%
 Sales * Average of forecast percentage of Advertising
 Depreciation: Depreciate the Capex by SL for 5 years
 Lease: Renegotiated every 6 Years, 2% growth every year
BALANCE SHEET PREPARATION

Accounts Receivable: In terms of Sales at constant rate of 32.4 percent

Inventory: In terms of CGS of Next Year at constant growth rate of 47.6 percent

Accounts Payable: In terms of CGS of Next Year @ 16.3 percent

Accrued Expenses: In terms of Sum of (SGA+Advertising) @ 4.8 percent

Capex is estimate as follows - Stores *Area per store*cost per sqft.*70% for (Refreshing cost). This happens every 8 years
• For 2005 we have 4 stores with area of each as 18500 with nominal cost of 26.9 for construction but
for refreshing we have to take 70 percent of the Construction cost
PERFORMA IS
Store level data for Income Statement have been rolled up to prepare the final consolidate Income statement for
Teuer Furniture (Pro forma IS)

Store level data for Balance Sheet have been rolled up to prepare the final consolidate Balance Sheet for Teuer
Furniture (Pro forma BS)

Corporate Expenses is 5% of Sales

Taxes is taken as 40% of EBIT

PPE is calculated as (Capex - Dep)


FREE CASH FLOW
2012 2013 2014 2015 2016 2017 2018

Cash flow assets 12508 15290 17080 19825 27120 32766 36731

Terminal value 442048

Discounting Factor 1.0000 0.8921 0.7958 0.7099 0.6333 0.5649 0.5039

Discounted Value 12508 13640 13592 14073 17174 18509 241269

Asset value 318257 341476 365714 390141 410228 427099 442048

Share value 32 34 37 39 41 43 44
SPREADSHEET
Thank You

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