Income Statement

Particulars
Sales
Less: Cost of Goods Sold
Gross Profit:
Less Expenses
Cash Operating Costs
Depreciation of Plant and Machinery
Depreciation of Building
Depreciation of Motor Vehicle
Total Operating Costs
EBIT
Less Interest
EBT
Taxes 35%
Profit after Tax
Less: Dividends
Retaied Earning

Year 1

Year 2

PKR 7,500,000.00
PKR 4,500,000.00
PKR 3,000,000.00

PKR 12,600,000.00
PKR 7,560,000.00
PKR 5,040,000.00

PKR 1,500,000.00
PKR 300,000.00
PKR 40,000.00
PKR 80,000.00
PKR 1,920,000.00
PKR 1,080,000.00
PKR 431,250.00
PKR 648,750.00
PKR 227,062.50
PKR 421,687.50
PKR 194,950.00
PKR 226,737.50

PKR 2,520,000.00
PKR 300,000.00
PKR 40,000.00
PKR 80,000.00
PKR 2,940,000.00
PKR 2,100,000.00
PKR 443,400.00
PKR 1,656,600.00
PKR 579,810.00
PKR 1,076,790.00
PKR 0.00
PKR 1,076,790.00

tement
Year 3

Year 4

Year 5

PKR 21,168,000.00
PKR 12,700,800.00
PKR 8,467,200.00

PKR 35,562,240.00
PKR 21,337,344.00
PKR 14,224,896.00

PKR 42,941,404.80
PKR 25,764,842.88
PKR 17,176,561.92

PKR 4,233,600.00
PKR 300,000.00
PKR 65,200.00
PKR 80,000.00
PKR 4,678,800.00
PKR 3,788,400.00
PKR 524,562.00
PKR 3,263,838.00
PKR 1,142,343.30
PKR 2,121,494.70
0
PKR 2,121,494.70

PKR 7,112,448.00
PKR 363,504.00
PKR 65,200.00
PKR 80,000.00
PKR 7,621,152.00
PKR 6,603,744.00
PKR 645,636.66
PKR 5,958,107.34
PKR 2,085,337.57
PKR 3,872,769.77
0

PKR 8,588,280.96

Balance Sheet
Particulars
Fixed Assets
Plant and Machinery
Less: Accumulated Depreciation
P&M Net Book Value

Beginning
PKR 5,000,000.00
PKR 5,000,000.00

Year 1

Year 2

PKR 5,000,000.00
PKR 750,000.00
PKR 4,250,000.00

PKR 5,000,000.00
PKR 1,500,000.00
PKR 3,500,000.00

PKR 2,000,000.00
PKR 100,000.00
PKR 1,900,000.00

PKR 3,260,000.00
PKR 200,000.00
PKR 3,060,000.00
PKR 1,000,000.00
PKR 400,000.00
PKR 600,000.00

Building
Less: Accumulated Depreciation
Net Book Value of Building

PKR 2,000,000.00

Motor Vehicle
Less: Accumulated Depreciation
Net Book value of M.V.

PKR 1,000,000.00
PKR 1,000,000.00

PKR 1,000,000.00
PKR 200,000.00
PKR 800,000.00

Land

PKR 2,000,000.00

PKR 2,000,000.00

PKR 2,000,000.00

PKR 10,000,000.00

PKR 8,950,000.00

PKR 9,160,000.00

Total Fixed Assets

Current Assets
Cash
Inventory
Accounts Receivables
Total Current Assets
Total Assets
Less Current Liabilities
Accounts Payable

PKR 2,000,000.00

PKR 1,500,000.00
PKR 375,000.00
PKR 630,000.00
PKR 0.00 PKR 1,134,000.00 PKR 1,905,120.00
PKR 0.00 PKR 1,500,000.00 PKR 2,520,000.00
PKR 1,500,000.00 PKR 3,009,000.00 PKR 5,055,120.00
PKR 11,500,000.00 PKR 11,959,000.00 PKR 14,215,120.00

Total Current Liabilities

PKR 135,000.00

PKR 226,800.00

PKR 135,000.00

PKR 226,800.00

Long Term Liabilities

Long Term Debt

PKR 3,450,000.00

PKR 3,547,200.00

PKR 4,196,496.00

Total Long Term Debt

PKR 3,450,000.00

PKR 3,547,200.00

PKR 4,196,496.00

PKR 8,050,000.00

PKR 8,050,000.00
PKR 226,737.50
PKR 8,276,737.50

PKR 8,488,234.00
PKR 1,076,790.00
PKR 9,565,024.00

Total Equity
Paid up Capital
Retained Earnings
Total Shareholders' Equity
Shareholders'

PKR 8,050,000.00

t
Year 3

Year 4

Year 5

PKR 6,058,400.00
PKR 2,250,000.00
PKR 3,808,400.00
PKR 3,260,000.00
PKR 363,000.00
PKR 2,897,000.00
PKR 1,000,000.00
PKR 600,000.00
PKR 400,000.00
PKR 2,000,000.00

PKR 2,000,000.00

PKR 2,000,000.00

PKR 9,105,400.00

PKR 1,058,400.00 PKR 1,778,112.00 PKR 2,147,070.24

PKR 3,200,601.60 PKR 3,864,726.43
PKR 0.00
PKR 4,233,600.00 PKR 7,112,448.00 PKR 8,588,280.96
PKR 8,492,601.60 PKR 12,755,286.43 PKR 10,735,351.20
PKR 17,598,001.60
PKR 381,024.00
PKR 381,024.00

PKR 5,165,093.28
PKR 5,165,093.28

PKR 8,626,799.62
PKR 2,121,494.70
PKR 10,748,294.32

Optimum Capital Struc

Options Debt
Equity
0 0.00%
1 10.00%
2 20.00%
3 30.00%
4 40.00%

100.00%
90.00%
80.00%
70.00%
60.00%

Total Funds needed:

Debt Percentage
Equity Percentage
Total Funds needed:

Growth Needs
Growth Needs
Debt Taking for growth @ 30%
Equity consumption for growth @ 70%
Growth Need

Bu Bl
0.9
0.9
0.9
0.9
0.9

0.9
0.965
1.04625
1.150714286
1.29
PKR 11,500,000.00
PKR 3,450,000.00
PKR 8,050,000.00
PKR 11,500,000.00

Year 1
TA(e) - TA(b) - Change in A/P
PKR 324,000.00
PKR 97,200.00
PKR 226,800.00
PKR 324,000.00

Optimum Capital Structure

Rf

Rd
8.00%
8.00%
8.00%
8.00%
8.00%

Rm - Rf
0.00%
10.75%
11.50%
12.50%
16.00%

6.00%
6.00%
6.00%
6.00%
6.00%

Year 2
Year 3
TA(e) - TA(b) - Change in A/P
TA(e) - TA(b) - Change in A/P
TA(e) - TA(b) - Change in A/P
PKR 2,164,320.00
PKR 3,228,657.60
PKR 649,296.00
PKR 968,597.28
PKR 1,515,024.00
PKR 2,260,060.32
PKR 2,164,320.00
PKR 3,228,657.60

Re
13.40%
13.79%
14.28%
14.90%
15.74%

TA(e) - TA(b) - Change in A/P

WACC
13.40%
13.11%
12.917%
12.871%
13.60%