Financial Model

Contents
Operating Budget Contains revenue budget, COGS budget, and operating expenses budget
Financial Statements Provides three financial statements: income statement, balance sheet, cash flow statement
D1 - COGS Budget Explains the detail of COGS components and calculations
D2 - PPE Schedule Outlines the schedule of PPE and intangible acquisitions with depreciation and amortization calculation
D3 - Financing Schedule Outlines the schedule of debt and equity financing schedule along with interest and dividend payment

Notes
This Excel model is for educational purposes only and should not be used for any other reason.

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OPERATING BUDGET
Current Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Assumptions
Sales Volume Growth (%) 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Sales Price Increase (%) 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%
Cost Increase (%) 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Income Tax Rate (%) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

Revenue Budget

Volume
[Product 1] 500,000 515,000 530,450 546,364 562,755 579,638 597,028 614,939 633,388 652,390 671,962
[Product 2] 750,000 772,500 795,675 819,546 844,133 869,457 895,541 922,408 950,081 978,584 1,007,942
[Product 3] 300,000 309,000 318,270 327,819 337,654 347,784 358,218 368,965 380,034 391,436 403,180

Price per Unit

[Product 1] 25.00 26.25 27.57 28.95 30.40 31.92 33.52 35.20 36.96 38.81 40.76
[Product 2] 12.00 12.60 13.23 13.90 14.60 15.33 16.10 16.91 17.76 18.65 19.59
[Product 3] 18.00 18.90 19.85 20.85 21.90 23.00 24.15 25.36 26.63 27.97 29.37

Revenue
[Product 1] 12,500,000 13,518,750 14,624,507 15,817,238 17,107,752 18,502,045 20,012,379 21,645,853 23,410,020 25,319,256 27,389,171
[Product 2] 9,000,000 9,733,500 10,526,780 11,391,689 12,324,342 13,328,776 14,418,210 15,597,919 16,873,439 18,250,592 19,745,584
[Product 3] 5,400,000 5,840,100 6,317,660 6,835,026 7,394,623 7,999,032 8,650,965 9,356,952 10,120,305 10,948,465 11,841,397

Total Revenue 26,900,000 29,092,350 31,468,946 34,043,953 36,826,716 39,829,853 43,081,553 46,600,724 50,403,764 54,518,312 58,976,152

COGS Budget

Standard COGS per Unit Note: Jika perhitungan COGS perlu dijelaskan lebih detail, dapat membuat sheet terpisah untuk Input Asumsi COGS.
[Product 1] 5.99 6.14 6.29 6.45 6.61 6.78 6.95 7.12 7.30 7.48 7.67
[Product 2] 7.56 7.75 7.95 8.15 8.35 8.56 8.77 8.99 9.22 9.45 9.68
[Product 3] 11.75 12.04 12.34 12.65 12.97 13.29 13.62 13.96 14.31 14.67 15.04

COGS
[Product 1] 2,995,420 3,162,415 3,338,719 3,524,856 3,721,367 3,928,836 4,147,874 4,379,119 4,623,261 4,881,011 5,153,130
[Product 2] 5,673,378 5,989,669 6,323,593 6,676,139 7,048,339 7,441,284 7,856,138 8,294,125 8,756,529 9,244,711 9,760,108
[Product 3] 3,523,702 3,720,149 3,927,547 4,146,519 4,377,693 4,621,755 4,879,424 5,151,458 5,438,653 5,741,872 6,061,995

Total COGS 12,192,500 12,872,232 13,589,859 14,347,514 15,147,399 15,991,874 16,883,436 17,824,702 18,818,443 19,867,594 20,975,233

Gross Profit 14,707,500 16,220,118 17,879,087 19,696,439 21,679,317 23,837,978 26,198,117 28,776,022 31,585,321 34,650,718 38,000,918

Operating Expense Budget

Operating Expenses
[Operating Expense 1] 1,000,000 1,025,000 1,050,625 1,076,891 1,103,813 1,131,408 1,159,693 1,188,686 1,218,403 1,248,863 1,280,085
[Operating Expense 2] 2,000,000 2,050,000 2,101,250 2,153,781 2,207,626 2,262,816 2,319,387 2,377,372 2,436,806 2,497,726 2,560,169
[Operating Expense 3] 4,000,000 4,100,000 4,202,500 4,307,563 4,415,252 4,525,633 4,638,774 4,754,743 4,873,612 4,995,452 5,120,338

Depreciation & Amortization

[Depreciation] 600,000 600,000 1,600,000 1,600,000 1,600,000 2,000,000 1,000,000 1,000,000 2,000,000 2,000,000 1,000,000 Note: Perlu membuat skedul depresiasi dan amortisasi secara terpisah.
[Amortization] 200,000 200,000 325,000 325,000 325,000 625,000 625,000 625,000 975,000 975,000 650,000

Total Operating Expenses 7,800,000 7,975,000 9,279,375 9,463,234 9,651,690 10,544,857 9,742,854 9,945,800 11,503,820 11,717,041 10,610,592

EBIT 6,907,500 8,245,118 8,599,712 10,233,205 12,027,627 13,293,121 16,455,263 18,830,222 20,081,501 22,933,678 27,390,326

[Interest Expense] (375,000) (348,493) (319,998) (289,365) (526,435) (445,921) (358,691) (264,181) (361,779) (190,398) (73,112) Note: Perlu membuat skedul perhitungan bunga secara terpisah.

EBT 6,532,500 7,896,625 8,279,715 9,943,840 11,501,192 12,847,200 16,096,572 18,566,041 19,719,722 22,743,280 27,317,215

[Income Tax Expense] 1,633,125 1,974,156 2,069,929 2,485,960 2,875,298 3,211,800 4,024,143 4,641,510 4,929,930 5,685,820 6,829,304

Net Income 4,899,375 5,922,469 6,209,786 7,457,880 8,625,894 9,635,400 12,072,429 13,924,530 14,789,791 17,057,460 20,487,911

468356747.xlsx 04/04/2020 00:55:59

FINANCIAL STATEMENTS
Current Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024
Balance Sheet Check OK OK OK OK OK OK

Assumptions
Accounts Receivable (Days) 18 18 18 18 18 18
Inventory (Days) 73 73 73 73 73 73
Accounts Payable (Days) 37 37 37 37 37 37
Days in a year 365 366 365 365 365 366

Income Statement
Reveneue 26,900,000 29,092,350 31,468,946 34,043,953 36,826,716 39,829,853
Cost of Goods Sold (COGS) 12,192,500 12,872,232 13,589,859 14,347,514 15,147,399 15,991,874
Gross Profit 14,707,500 16,220,118 17,879,087 19,696,439 21,679,317 23,837,978

Operating Expenses
Operating Expense 1 1,000,000 1,025,000 1,050,625 1,076,891 1,103,813 1,131,408
Operating Expense 2 2,000,000 2,050,000 2,101,250 2,153,781 2,207,626 2,262,816
Operating Expense 3 4,000,000 4,100,000 4,202,500 4,307,563 4,415,252 4,525,633
Depreciation & Amortization 800,000 800,000 1,925,000 1,925,000 1,925,000 2,625,000
Total Operating Expense 7,800,000 7,975,000 9,279,375 9,463,234 9,651,690 10,544,857

Earnings Before Interest and Tax 6,907,500 8,245,118 8,599,712 10,233,205 12,027,627 13,293,121
Interest Expense (375,000) (348,493) (319,998) (289,365) (526,435) (445,921)
Earnings Before Tax 6,532,500 7,896,625 8,279,715 9,943,840 11,501,192 12,847,200

Income Tax Expense 1,633,125 1,974,156 2,069,929 2,485,960 2,875,298 3,211,800

Net Income 4,899,375 5,922,469 6,209,786 7,457,880 8,625,894 9,635,400
FINANCIAL STATEMENTS
Current Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024
Balance Sheet Check OK OK OK OK OK OK

Balance Sheet
Assets
Cash 4,716,822 10,771,585 13,162,569 21,744,670 33,926,167 36,711,066
Accounts Receivable 1,326,575 1,430,771 1,551,893 1,678,880 1,816,112 1,958,845
Inventory 2,438,500 2,567,412 2,717,972 2,869,503 3,029,480 3,189,636
Fixed Assets (net) 2,400,000 1,800,000 4,200,000 2,600,000 1,000,000 4,000,000
Intangible Assets (net) 1,800,000 1,600,000 2,275,000 1,950,000 1,625,000 4,000,000
Total Assets 12,681,897 18,169,769 23,907,434 30,843,052 41,396,759 49,859,548

Liabilities
Accounts Payable 1,235,952 1,301,291 1,377,602 1,454,406 1,535,490 1,616,665
Debt 4,646,570 4,266,634 3,858,201 3,419,137 5,445,865 4,392,079
Total Liabilities 5,882,522 5,567,925 5,235,804 4,873,542 6,981,355 6,008,744

Shareholder's Equity
Equity Capital 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Retained Earnings 4,799,375 10,601,844 16,671,630 23,969,510 32,415,404 41,850,804
Shareholder's Equity 6,799,375 12,601,844 18,671,630 25,969,510 34,415,404 43,850,804
Total Liabilities & Shareholder's Equity 12,681,897 18,169,769 23,907,434 30,843,052 41,396,759 49,859,548

Check - - - - - -
FINANCIAL STATEMENTS
Current Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024
Balance Sheet Check OK OK OK OK OK OK

Cash Flow Statement

Operating Cash Flow - Indirect Method
Net Income 4,899,375 5,922,469 6,209,786 7,457,880 8,625,894 9,635,400
Plus: Depreciation & Amortization 800,000 800,000 1,925,000 1,925,000 1,925,000 2,625,000
Less: Changes in Noncash Working Capital (2,529,123) (167,769) (195,370) (201,714) (216,125) (221,714)
Plus: Interest Expense 375,000 348,493 319,998 289,365 526,435 445,921
Cash from Operations 3,545,252 6,903,193 8,259,413 9,470,531 10,861,204 12,484,607

Investing Cash Flow

Investments in PPE (3,000,000) - (4,000,000) - - (5,000,000)
Investments in Intangible Assets (2,000,000) - (1,000,000) - - (3,000,000)
Cash from Investing (5,000,000) - (5,000,000) - - (8,000,000)

Financing Cash Flow

Issuance of debt 5,000,000 - - - 3,000,000 -
Repayment of debt (including interest) (728,430) (728,430) (728,430) (728,430) (1,499,707) (1,499,707)
Issuance of equity 2,000,000 - - - - -
Repayment of equity - - - - - -
Dividend Payment (100,000) (120,000) (140,000) (160,000) (180,000) (200,000)
Cash from Financing 6,171,570 (848,430) (868,430) (888,430) 1,320,293 (1,699,707)

Net Increase (decrease) in Cash 4,716,822 6,054,763 2,390,984 8,582,101 12,181,497 2,784,900
Opening Cash Balance - 4,716,822 10,771,585 13,162,569 21,744,670 33,926,167
Closing Cash Balance 4,716,822 10,771,585 13,162,569 21,744,670 33,926,167 36,711,066

Check - - - - - -
FINANCIAL STATEMENTS
Current Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024
Balance Sheet Check OK OK OK OK OK OK
Operating Cash Flow - Direct Method
Cash received from customers 25,573,425 28,988,154 31,347,824 33,916,967 36,689,484 39,687,120
Cash paid to suppliers (13,395,048) (12,935,805) (13,664,107) (14,422,242) (15,226,292) (16,070,856)
Cash paid for operating expenses (7,000,000) (7,175,000) (7,354,375) (7,538,234) (7,726,690) (7,919,857)
Cash paid for income taxes (1,633,125) (1,974,156) (2,069,929) (2,485,960) (2,875,298) (3,211,800)
Cash from Operations 3,545,252 6,903,193 8,259,413 9,470,531 10,861,204 12,484,607

Check - - - - - -
COGS BUDGET - Detail

HOME Product 1 Product 2 Product 3

Assumptions

Current Production
Units produced 500,000 750,000 300,000

DM Budget

Standard DM Usage per Unit

Direct Material 1 1.00 1.00 1.00
Direct Material 2 1.50 2.00 2.50
Direct Material 3 0.50 0.40 0.30
Direct Material 4 2.00 4.00 6.00

Standard DM Cost per Unit DM

Direct Material 1 0.10 0.10 0.10
Direct Material 2 0.50 0.50 0.50
Direct Material 3 1.00 1.00 1.00
Direct Material 4 1.20 1.20 1.20

Total DM Costs per Unit 3.75 6.30 8.85

DL Budget

Standard DL Hour per Unit

DL Hours 0.25 0.15 0.30

Standard DL Cost per Hour

DL Cost per Hour 5.00 5.00 5.00

Total DL Costs per Unit 1.25 0.75 1.50

Overhead Budget

Specific Overhead (Total) 400,000 300,000 350,000

Common Overhead (Total) 250,000

Allocation Base - Alternative 1 Unit production 500,000 750,000 300,000

Allocation Base - Alternative 2 DL Hours 125,000 112,500 90,000
Allocation Base - Alternative 3 Total DL costs 625,000 562,500 450,000

Allocation Base - Chosen DL Hours 125,000 112,500 90,000

Common Overhead - Allocated 95,420 85,878 68,702

Total Overhead Costs 495,420 385,878 418,702

Total Overhead Costs per Unit 0.99 0.51 1.40

Total COGS per Unit 5.99 7.56 11.75

Specific overhead occurs for each product.
Common overhead occurs to all products, so that it needs to be allocated.
PPE and Intangible Assets Schedule
Current Forecast Forecast Forecast
HOME 2019 2020 2021 2022

Opening Balance
Property, Plant and Equipment 0 2,400,000 1,800,000 4,200,000
Intangible Assets 0 1,800,000 1,600,000 2,275,000
Total 0 4,200,000 3,400,000 6,475,000

PPE Acquisition
Name Year Cost Residual Useful Life Depreciation Expense
PPE 1 2019 3,000,000 0 5 600,000 600,000 600,000 600,000
PPE 2 2021 4,000,000 0 4 0 0 1,000,000 1,000,000
PPE 3 2024 5,000,000 0 5 0 0 0 0
PPE 4 2027 10,000,000 0 10 0 0 0 0
Total Depreciation Expense 600,000 600,000 1,600,000 1,600,000

Intangible Assets Acquisition

Name Year Cost Residual Useful Life Amortization Expense
Int. Asset 1 2019 2,000,000 0 10 200,000 200,000 200,000 200,000
Int. Asset 2 2021 1,000,000 0 8 0 0 125,000 125,000
Int. Asset 3 2024 3,000,000 0 10 0 0 0 0
Int. Asset 4 2027 7,000,000 0 20 0 0 0 0
Total Amortization Expense 200,000 200,000 325,000 325,000

Closing Balance
Property, Plant and Equipment 2,400,000 1,800,000 4,200,000 2,600,000
Intangible Assets 1,800,000 1,600,000 2,275,000 1,950,000
Total 4,200,000 3,400,000 6,475,000 4,550,000
Forecast Forecast Forecast Forecast Forecast Forecast Forecast
2023 2024 2025 2026 2027 2028 2029

2,600,000 1,000,000 4,000,000 3,000,000 2,000,000 10,000,000 8,000,000

1,950,000 1,625,000 4,000,000 3,375,000 2,750,000 8,775,000 7,800,000
4,550,000 2,625,000 8,000,000 6,375,000 4,750,000 18,775,000 15,800,000

600,000 0 0 0 0 0 0
1,000,000 1,000,000 0 0 0 0 0
0 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 0
0 0 0 0 1,000,000 1,000,000 1,000,000
1,600,000 2,000,000 1,000,000 1,000,000 2,000,000 2,000,000 1,000,000

200,000 200,000 200,000 200,000 200,000 200,000 0

125,000 125,000 125,000 125,000 125,000 125,000 0
0 300,000 300,000 300,000 300,000 300,000 300,000
0 0 0 0 350,000 350,000 350,000
325,000 625,000 625,000 625,000 975,000 975,000 650,000

1,000,000 4,000,000 3,000,000 2,000,000 10,000,000 8,000,000 7,000,000

1,625,000 4,000,000 3,375,000 2,750,000 8,775,000 7,800,000 7,150,000
2,625,000 8,000,000 6,375,000 4,750,000 18,775,000 15,800,000 14,150,000
Financing Schedule
Current Forecast Forecast Forecast Forecast Forecast Forecast
HOME 2019 2020 2021 2022 2023 2024 2025

Debt Financing Schedules

Debt Issuance
Year Issuance Due Periods Interest Rate Debt Payment Schedule
2019 5,000,000 10 7.5% (728,430) (728,430) (728,430) (728,430) (728,430) (728,430) (728,430)
2023 3,000,000 5 9.0% 0 0 0 0 (771,277) (771,277) (771,277)
2027 2,000,000 3 10.0% 0 0 0 0 0 0 0
Total Debt Payments (728,430) (728,430) (728,430) (728,430) (1,499,707) (1,499,707) (1,499,707)

Interest Expense Calculation

Year Issuance Due Periods Interest Rate Interest Expense (Effective Interest Method)
2019 5,000,000 10 7.5% (375,000) (348,493) (319,998) (289,365) (256,435) (221,036) (182,981)
2023 3,000,000 5 9.0% 0 0 0 0 (270,000) (224,885) (175,710)
2027 2,000,000 3 10.0% 0 0 0 0 0 0 0
Total Interest Expense (375,000) (348,493) (319,998) (289,365) (526,435) (445,921) (358,691)

Debt Financing Summary

Opening Balance 0 4,646,570 4,266,634 3,858,201 3,419,137 5,445,865 4,392,079
Issuance 5,000,000 0 0 0 3,000,000 0 0
Repayment (728,430) (728,430) (728,430) (728,430) (1,499,707) (1,499,707) (1,499,707)
Interest Expense (375,000) (348,493) (319,998) (289,365) (526,435) (445,921) (358,691)
Ending Balance 4,646,570 4,266,634 3,858,201 3,419,137 5,445,865 4,392,079 3,251,063

Equity Financing Schedules

Opening Balance 0 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Issuance 2,000,000 0 0 0 0 0 0
Repayment 0 0 0 0 0 0 0
Ending Balance 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Dividend (%) 5% 6% 7% 8% 9% 10% 11%

Dividend Payment 100,000 120,000 140,000 160,000 180,000 200,000 220,000
Forecast Forecast Forecast Forecast
2026 2027 2028 2029

(728,430) (728,430) (728,430) 0

(771,277) (771,277) 0 0
0 (804,230) (804,230) (804,230)
(1,499,707) (2,303,937) (1,532,659) (804,230)

(142,073) (98,096) (50,821) 0

(122,109) (63,683) 0 0
0 (200,000) (139,577) (73,112)
(264,181) (361,779) (190,398) (73,112)

3,251,063 2,015,537 2,073,379 731,118

0 2,000,000 0 0
(1,499,707) (2,303,937) (1,532,659) (804,230)
(264,181) (361,779) (190,398) (73,112)
2,015,537 2,073,379 731,118 0

2,000,000 2,000,000 2,000,000 2,000,000

0 0 0 0
0 0 0 0
2,000,000 2,000,000 2,000,000 2,000,000

12% 13% 14% 15%

240,000 260,000 280,000 300,000