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These spreadsheet exhibits relate to the case Teuer Furniture (A): Discounted Cash
Flow Valuation, Case
#KEL778.
©2015 by the Kellogg School of Management at Northwestern University. This case was
prepared by
Professor Mitchell A. Petersen. Teuer Furniture is a fictional company whose
profile was created based on
data from real industry leaders. Cases are developed solely as the basis for class
discussion. Cases are not
intended to serve as endorsements, sources of primary data, or illustrations of
effective or ineffective
management. To order copies or request permission to reproduce materials, call 800-
545-7685 (or 617-7837600 outside the United States or Canada) or e-mail
custserv@hbsp.harvard.edu. No part of this publication
may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any
means—electronic, mechanical, photocopying, recording, or otherwise—without the
permission of Kellogg
Case Publishing.
low Valuation, Case
as prepared by
as created based on
cussion. Cases are not
e or ineffective
545-7685 (or 617-783part of this publication
d in any form or by any
ermission of Kellogg
Exhibit 1: Teuer Furnitures Showrooms and Square Footage
Stores
Opened
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
Stores
1
3
4
5
6
2
1
2
2
3
2
2
2
763655
764480
1
4
8
13
19
21
22
24
26
29
31
33
35
SQ FT
Opened
17,200
17,600
18,500
21,100
22,100
15,500
14,500
14,700
15,400
16,300
16,000
16,000
15,000
1290960
48900
Total
SQ FT
17,200
70,000
144,000
249,500
382,100
413,100
427,600
457,000
487,800
536,700
568,700
600,700
630,700
40
35
30
25
20
15
10
5
0
2003
2005
40
700,000
35
600,000
30
500,000
25
400,000
20
300,000
15
200,000
10
100,000
5
0
2003
2005
2007
2009
Number of Showrooms
2011
2013
0
2015
Exhibit 2: Economic Indicators: GDP and Furniture Sales Growth
CPI index
Inflation (CPI)
GDP (T$)
GDP growth
Furniture sales ($B)
Furniture sales growth
2002
180.9
10,642
94.44
2003
184.3
1.9%
11,142
4.7%
96.7
2.4%
2004
190.3
3.3%
11,853
6.4%
103.8
7.3%
2005
196.8
3.4%
12,623
6.5%
109.1
5.2%
2006
201.8
2.5%
13,377
6.0%
112.8
3.4%
2007
210.0
4.1%
14,029
4.9%
111.1
-1.5%
2008
210.2
0.1%
14,292
1.9%
99.6
-10.4%
2009
215.9
2.7%
13,974
-2.2%
86.3
-13.4%
2010
219.2
1.5%
14,499
3.8%
87.3
1.2%
2011
225.7
3.0%
15,076
4.0%
90.1
3.2%
2012
229.6
1.7%
15,685
4.0%
93.1
3.4%
10.0%
5.0%
0.0%
2003
2005
2007
2009
2011
2013
-5.0%
-10.0%
-15.0%
GDP Growth
2015
2017
2013
233.5
1.7%
16,238
3.5%
95.9
3.0%
2014
237.7
1.8%
17,049
5.0%
98.6
2.8%
2015
242.3
1.9%
18,012
5.6%
101.2
2.6%
2016
247.4
2.1%
19,021
5.6%
103.6
2.4%
2017
252.1
1.9%
20,078
5.6%
105.9
2.2%
2018
256.6
1.8%
21,101
5.1%
108.0
2.0%
2019
261.3
1.8%
110.2
2.0%
Exhibit 3: Teuer Furniture Income Statement
2003
Sales
Cost of goods sold
Selling, general and admin
Advertising
Depreciation
Lease
Corporate expense
Taxable income
Tax loss carry forward
Taxes
Net income
Parameters:
Corporate tax rate
Sales Growth
2004
2,057
-1,463
-410
-203
-72
-250
-185
-526
526
0
-526
2005
10,415
-7,057
-1,812
-1,019
-307
-1,080
-729
-1,588
2,114
0
-1,588
2006
26,701
-17,424
-4,958
-2,411
-669
-2,330
-1,602
-2,693
4,807
0
-2,693
2007
51,540
-30,730
-9,230
-4,588
-1,264
-4,240
-3,092
-1,604
6,411
0
-1,604
2008
79,191
-43,834
-13,576
-6,585
-2,075
-6,770
-4,751
1,600
4,811
0
1,600
2009
90,680
-47,290
-14,679
-7,532
-2,188
-7,380
-5,441
6,170
0
-543
5,626
2010
111,451
-49,068
-16,471
-8,367
-2,032
-7,712
-5,573
22,229
0
-8,892
13,337
2011
134,093
-55,487
-18,698
-9,545
-1,820
-8,450
-6,705
33,389
0
-13,356
20,033
2012
148,218
-61,955
-21,253
-10,744
-1,450
-9,320
-7,411
36,086
0
-14,434
21,651
406.44%
156.37%
93.03%
53.65%
14.51%
22.91%
20.32%
10.53%
40%
Exhibit 4: Teuer Furniture Balance Sheet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
671
671
358
1,029
751
3,151
3,902
1,461
5,364
3,479
8,216
11,695
2,969
14,663
8,675
15,125
23,800
5,270
29,070
16,946
20,908
37,853
8,065
45,918
25,272
21,715
46,987
6,914
53,900
29,059
24,868
53,927
5,119
59,046
36,625
26,808
63,433
3,839
67,272
42,421
29,216
71,637
3,142
74,779
48,200
33,343
81,543
3,920
85,463
236
29
265
0
764
1,029
1,158
145
1,303
0
4,061
5,364
2,781
358
3,139
0
11,525
14,663
5,119
658
5,777
0
23,293
29,070
7,228
958
8,186
0
37,732
45,918
7,767
1,055
8,822
0
45,079
53,900
8,277
1,203
9,480
0
49,565
59,046
9,133
1,359
10,493
0
56,779
67,272
9,986
1,519
11,505
0
63,274
74,779
11,364
1,682
13,046
0
72,417
85,463
Assets
Accounts Receivable
Inventory
Total Current Assets
PPE
Total Assets
Liabilities and Equity
Accounts Payable
Accrued Expenses
Total Current Liabilities
Debt
Equity
Total Liabilities and Equity
Balance sheet check
Exhibit 5: Teuer Furniture Income Statement for Individual Showrooms
#
2003
Avg Size
1
17,200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
9
10
11
12
13
14
15
16
Sales
2,057
3,754
5,224
6,148
6,341
5,503
5,636
5,871
6,034
6,235
6,430
6,618
6,799
6,971
7,133
7,299
CGS
1,463
2,309
3,018
2,394
2,753
2,311
2,194
2,150
2,416
2,476
2,554
2,629
2,700
2,769
2,833
2,899
SGA
410
640
857
856
815
765
767
687
791
848
874
900
925
948
970
993
203
334
399
434
422
423
391
401
457
449
463
477
490
502
514
526
72
72
72
72
72
65
65
65
65
65
0
0
250
250
250
250
250
250
302
302
302
302
302
302
365
365
365
365
10
11
12
13
14
15
Sales
6,661
11,907
15,158
16,488
15,446
16,187
17,279
17,869
18,464
19,041
19,599
20,134
20,643
21,123
21,615
CGS
4,748
7,428
7,894
7,216
6,031
6,675
6,691
7,176
7,330
7,559
7,781
7,993
8,195
8,386
8,581
SGA
1,171
2,148
2,631
2,323
2,239
2,224
2,395
2,319
2,511
2,590
2,665
2,738
2,807
2,873
2,940
Advertising
685
971
1,266
1,213
1,235
1,241
1,245
1,287
1,329
1,371
1,411
1,450
1,486
1,521
1,556
Depreciation
235
235
235
235
235
187
187
187
187
187
830
830
830
830
830
830
1,003
1,003
1,003
1,003
1,003
1,003
1,212
1,212
1,212
10
11
12
13
14
Sales
9,570
16,651
19,785
20,951
22,847
24,451
24,499
25,315
26,108
26,872
27,605
28,303
28,962
29,636
CGS
6,978
10,917
11,430
8,499
9,387
9,857
9,042
10,050
10,365
10,668
10,959
11,236
11,498
11,765
SGA
1,953
2,977
3,371
3,039
3,021
3,228
3,693
3,443
3,551
3,655
3,754
3,849
3,939
4,030
1,041
1,488
1,587
1,598
1,605
1,645
1,793
1,823
1,880
1,935
1,988
2,038
2,085
2,134
Advertising
Depreciation
Lease
2004
17,600
Lease
2005
4
18,500
Advertising
Depreciation
Lease
2006
21,100
Sales
363
363
363
363
363
301
301
301
301
301
1,250
1,250
1,250
1,250
1,250
1,250
1,510
1,510
1,510
1,510
1,510
1,510
1,825
1,510
10
11
12
13
13,583
21,142
23,592
29,702
34,105
34,824
35,984
37,110
38,197
39,239
40,231
41,167
42,125
CGS
9,526
11,229
13,594
9,902
13,259
13,932
14,286
14,733
15,164
15,578
15,972
16,343
16,724
SGA
2,767
4,016
4,237
3,780
4,895
4,946
4,894
5,047
5,195
5,337
5,471
5,599
5,729
1,400
1,784
1,964
2,014
2,327
2,287
2,591
2,672
2,750
2,825
2,897
2,964
3,033
594
594
594
594
594
490
490
490
490
490
1,910
1,910
1,910
1,910
1,910
1,910
2,309
2,309
2,309
2,309
2,309
2,309
2,791
10
11
12
Sales
15,435
22,001
30,466
39,628
43,541
45,542
46,967
48,343
49,662
50,917
52,102
53,315
CGS
11,205
14,801
16,422
15,232
17,856
18,080
18,646
19,192
19,716
20,214
20,685
21,166
SGA
3,050
3,878
5,471
5,166
5,917
6,194
6,388
6,575
6,754
6,925
7,086
7,251
1,578
1,986
2,458
2,748
3,109
3,279
3,382
3,481
3,576
3,666
3,751
3,839
812
812
812
812
812
655
655
655
655
2,530
2,530
2,530
2,530
2,530
2,530
3,058
3,058
3,058
3,058
3,058
3,058
10
11
Sales
3,187
5,176
7,244
9,257
10,461
10,921
11,241
11,547
11,839
12,115
12,397
CGS
2,053
3,467
4,421
3,764
4,153
4,336
4,462
4,584
4,700
4,809
4,921
SGA
Advertising
Depreciation
Lease
2007
22,100
Advertising
Depreciation
Lease
2008
15,500
522
951
1,225
1,243
1,423
1,485
1,529
1,570
1,610
1,648
1,686
Advertising
326
499
598
675
753
786
809
831
852
872
893
Depreciation
185
185
185
185
185
152
152
610
610
610
610
610
610
737
737
737
737
Lease
2009
14,500
152
737
10
Sales
1,437
2,507
3,540
4,481
5,054
5,266
5,410
5,546
5,676
5,808
CGS
1,021
1,652
1,887
1,779
2,007
2,091
2,148
2,202
2,253
2,306
SGA
257
480
615
609
687
716
736
754
772
790
158
227
303
323
364
379
389
399
409
418
79
79
79
79
79
64
280
280
280
280
280
280
338
338
338
Advertising
Depreciation
Lease
2010
2
14,700
64
338
Sales
3,008
5,300
7,288
9,207
10,364
10,778
11,050
11,307
11,570
CGS
2,226
3,526
4,096
3,655
4,115
4,279
4,387
4,489
4,593
SGA
623
1,028
1,261
1,252
1,410
1,466
1,503
1,538
1,574
Advertising
353
473
598
663
746
776
796
814
833
Depreciation
150
150
150
150
150
0
0
123
565
565
565
565
565
565
683
683
Sales
3,354
5,879
8,069
10,174
11,430
11,863
12,139
12,421
CGS
2,357
3,745
4,535
4,039
4,538
4,709
4,819
4,931
SGA
Lease
2011
15,400
683
701
1,076
1,396
1,384
1,555
1,613
1,651
1,689
Advertising
358
523
662
733
823
854
874
894
Depreciation
160
160
160
160
160
610
610
610
610
610
610
737
610
Sales
5,379
9,411
12,891
16,223
18,191
18,842
19,280
CGS
3,814
5,995
7,245
6,441
7,222
7,480
7,654
SGA
1,038
1,722
2,230
2,206
2,474
2,562
2,622
838
1,057
1,168
1,310
1,357
1,388
Lease
2012
16,300
Advertising
570
Depreciation
259
259
259
259
259
1,000
1,000
1,000
1,000
1,000
1,000
1,209
Sales
3,622
6,326
8,647
10,861
12,155
12,590
CGS
2,568
4,029
4,860
4,312
4,825
4,998
SGA
Lease
2013
16,000
699
1,158
1,496
1,477
1,653
1,712
Advertising
384
563
709
782
875
906
Depreciation
172
172
172
172
172
0
668
668
668
668
668
668
Sales
3,731
6,503
8,872
11,122
12,447
CGS
2,097
2,582
3,522
4,416
4,941
SGA
720
1,190
1,535
1,513
1,693
720
1,190
1,535
1,513
1,693
175
175
175
175
175
682
682
682
682
Sales
3,597
6,257
8,520
10,680
CGS
1,428
2,484
3,382
4,240
SGA
Lease
2014
16,000
Advertising
Depreciation
Lease
2015
15,000
682
694
1,145
1,474
1,453
Advertising
381
557
699
769
Depreciation
167
167
167
167
652
652
652
652
Lease
Parameters:
Lease rate (2013)
Lease inflation
20.88
2.0%
Exhibit 6: Teuer Furniture Balance Sheet for Individual Showrooms
#
2003
Avg Size
1
17,200
Cap expenditure
2003
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
10
11
12
13
14
15
2,040
1,700
1,745
1,742
1,902
2,020
2,083
2,144
2,203
2,259
2,311
324
671
1,090
1,330
1,206
1,167
980
972
1,082
1,027
1,090
1,216
1,251
236
396
448
405
403
350
345
370
369
390
416
29
49
62
61
61
53
54
57
58
PPE
Cap expenditure
1,285
1,318
1,349
1,380
428
440
451
462
473
58
64
66
68
70
71
73
260
195
130
65
10
11
12
13
14
2,292
3,870
5,029
5,526
5,276
5,599
5,612
5,691
5,982
9,064
9,329
9,584
9,826
10,055
1,175
Accts receivable
Inventory
2018
4
1,975
Accr expenses
17,600
2017
3
1,665
Accts payable
2016
2
1,187
Inventory
2004
2015
1
751
358
Accts receivable
936
2,061
3,590
4,304
3,352
2,851
3,042
3,248
3,397
3,619
3,598
3,704
3,805
3,901
3,992
4,085
Accts payable
762
1,255
1,421
1,124
1,025
1,090
1,124
1,139
1,153
1,232
1,268
1,303
1,336
1,367
1,399
Accr expenses
95
158
193
173
162
162
175
177
179
190
196
201
206
211
216
936
748
561
374
187
10
11
12
13
2005
4
18,500
Cap expenditure
1,814
Accts receivable
1,506
3,140
5,508
6,296
6,231
7,149
7,751
7,950
8,202
8,459
8,707
8,944
9,170
9,384
Inventory
3,296
5,271
4,640
3,975
4,075
4,427
4,354
5,114
4,934
5,078
Accts payable
1,078
1,760
1,742
1,381
1,523
1,572
1,565
1,631
1,689
Accr expenses
138
212
240
203
240
244
251
259
2006
21,100
Cap expenditure
0
5,217
5,349
5,473
5,600
1,739
1,786
1,832
1,874
1,918
261
268
276
283
289
296
1,506
1,205
904
603
301
7
8
10
11
12
2,971
Accts receivable
2,450
4,433
6,593
7,974
10,040
10,908
11,761
11,659
12,024
12,376
12,713
13,035
13,338
Inventory
4,344
6,518
6,635
5,870
6,689
6,854
6,348
7,013
7,218
7,415
7,603
7,779
7,960
Accts payable
1,533
2,227
2,181
1,889
2,165
2,325
2,377
2,401
2,472
2,539
2,603
2,664
2,726
Accr expenses
193
272
300
291
337
343
362
371
381
392
402
411
421
2,450
1,960
1,470
980
490
10
11
2007
22,100
Cap expenditure
4,058
Accts receivable
3,277
4,817
6,829
9,849
12,400
13,920
14,756
15,217
15,663
16,091
16,497
16,881
Inventory
5,232
6,246
8,710
7,320
8,121
9,022
8,876
9,135
9,385
9,622
9,846
10,075
Accts payable
1,732
2,480
2,712
2,631
2,712
2,919
3,039
3,128
3,214
3,295
3,372
3,450
Accr expenses
213
293
362
381
436
435
469
483
496
508
520
532
3,277
2,622
1,966
1,311
10
2008
15,500
Cap expenditure
2
3
1,048
1,758
2,212
2,905
3,389
3,538
3,642
3,741
3,836
3,925
1,028
1,711
2,147
1,727
349
547
662
924
Accts receivable
Inventory
Accts payable
Accr expenses
2009
14,500
Cap expenditure
761
1,911
2,064
2,124
2,182
2,237
2,289
2,343
586
690
707
727
747
766
784
802
43
72
88
94
101
109
112
115
118
121
124
924
739
554
370
185
761
609
457
394
Accts receivable
Inventory
Accts payable
Accr expenses
2010
14,700
Cap expenditure
484
840
1,191
1,452
1,638
1,706
1,753
1,797
1,839
488
882
881
823
955
995
1,022
1,048
1,073
1,097
171
261
327
367
376
281
327
341
350
359
21
34
43
44
50
53
54
55
394
315
236
158
79
57
58
322
258
752
Accts receivable
Inventory
322
8
616
956
1,787
2,361
2,983
3,358
3,492
3,580
3,664
1,013
1,787
1,913
1,740
1,959
2,037
2,088
2,137
2,186
Accts payable
348
577
683
596
671
697
715
732
749
Accr expenses
44
71
91
92
103
108
110
113
116
752
602
451
301
150
1,093
1,905
2,614
3,296
3,703
3,844
3,933
1,067
1,795
2,158
387
623
2011
2
15,400
Cap expenditure
Inventory
Accts payable
Accr expenses
2012
616
798
Accts receivable
16,300
Cap expenditure
1,923
2,160
2,242
2,294
2,347
739
658
740
768
786
804
47
76
99
102
114
118
121
124
798
638
479
319
160
1,743
3,049
4,177
5,256
5,894
6,105
1,293
Accts receivable
Inventory
1,708
2,854
3,448
3,066
3,438
3,561
3,643
Accts payable
617
977
1,181
1,050
1,177
1,219
1,248
Accr expenses
79
123
158
162
182
188
192
1,293
1,034
776
517
259
1,174
2,050
2,802
3,519
3,938
1,918
2,313
657
2013
16,000
Cap expenditure
860
Accts receivable
Inventory
2,053
2,297
2,379
792
703
787
815
83
106
108
121
126
688
516
344
172
0
0
Accts receivable
1,209
2,107
2,875
3,604
Inventory
1,229
1,677
2,102
2,352
421
574
720
805
114
147
145
163
701
526
350
175
1
2
Accts receivable
1,165
2,027
2,760
Inventory
2,018
Accts payable
Accr expenses
860
2014
16,000
Cap expenditure
876
Accts payable
Accr expenses
876
2015
2
Cap expenditure
15,000
837
1,182
1,610
Accts payable
405
551
Accr expenses
73
97
103
670
502
335
837
691
Exhibit 7: Teuer Furniture Cash Flow Assets
2003
Sales
- Costs
- Taxes
Net income
- Capital expenditure
+ Depreciation
- Increase in NWC
Cash flow to assets
0
-358
0
-406
-764
2004
2,057
-2,582
0
-526
-1,175
72
-2,193
-3,823
2005
10,415
-12,003
0
-1,588
-1,814
307
-5,957
-9,052
2006
26,701
-29,394
0
-2,693
-2,971
669
-9,467
-14,461
2007
51,540
-53,144
0
-1,604
-4,058
1,264
-11,645
-16,043
2008
79,191
-77,591
0
1,600
-924
2,075
-8,498
-5,747
2009
90,680
-84,510
-543
5,626
-394
2,188
-6,281
1,139
2011
134,093
-100,704
-13,356
20,033
-1,122
1,820
-7,192
13,539
0.8466941 1.1630737
2012
148,218
-112,132
-14,434
21,651
-2,229
1,450
-8,365
12,508
Exhibit 8: Forecasting Sales Revenue and Costs
Sales growth
CGS
SGA
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
2
73.6%
72.9%
76.6%
73.8%
64.5%
60.5%
69.0%
70.4%
3
34.6%
29.2%
32.6%
28.8%
36.8%
35.6%
36.6%
4
19.5%
21.4%
22.2%
24.4%
26.1%
23.6%
5
15.1%
8.1%
7.8%
11.3%
6.3%
6
0.2%
3.6%
3.7%
-1.3%
7
1.2%
3.4%
-3.1%
70.2%
33.5%
22.9%
9.7%
1.5%
0.3%
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
1
71.1%
71.3%
72.9%
70.1%
72.6%
64.4%
71.0%
74.0%
70.3%
70.9%
2
61.5%
62.4%
65.6%
53.1%
67.3%
67.0%
65.9%
66.5%
3
57.8%
52.1%
57.8%
57.6%
53.9%
61.0%
53.3%
4
38.9%
43.8%
40.6%
33.3%
38.4%
40.7%
5
43.4%
39.0%
41.1%
38.9%
41.0%
6
42.0%
41.2%
40.3%
40.0%
7
38.9%
38.7%
36.9%
63.7%
56.2%
39.7%
39.9%
39.5%
38.6%
Year
2003
2004
2005
2006
2007
2008
2009
1
19.9%
17.6%
20.4%
20.4%
19.8%
16.4%
17.9%
2
17.1%
18.0%
17.9%
19.0%
17.6%
18.4%
19.2%
3
16.4%
17.4%
17.0%
18.0%
18.0%
16.9%
17.4%
4
13.9%
14.1%
14.5%
12.7%
13.0%
13.4%
5
12.9%
14.5%
13.2%
14.4%
13.6%
6
13.9%
13.7%
13.2%
14.2%
7
13.6%
13.9%
15.1%
8
1.0%
0.0%
8
36.6%
40.2%
8
11.7%
13.0%
Advertising
2010
2011
Average
20.7%
20.9%
19.3%
19.4%
18.3%
17.3%
13.6%
13.6%
13.5%
13.4%
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
1
9.9%
10.3%
10.9%
10.3%
10.2%
10.2%
11.0%
11.7%
10.7%
10.6%
2
8.9%
8.2%
8.9%
8.4%
9.0%
9.6%
9.1%
8.9%
3
7.6%
8.3%
8.0%
8.3%
8.1%
8.3%
8.6%
4
7.1%
7.4%
7.6%
6.8%
6.9%
7.3%
5
6.7%
8.0%
7.0%
6.8%
7.1%
6
7.7%
7.7%
6.7%
6.6%
7
6.9%
7.2%
7.3%
8.9%
8.2%
7.2%
8
6.8%
7.2%
9
-0.6%
9
40.0%
9
13.1%
9
7.6%
Exhibit 9: Forecasting Investment
Accounts Receivable
Inventory
Accounts Payable
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
1
36.5%
34.4%
32.8%
32.6%
31.2%
32.9%
33.7%
31.8%
32.6%
32.4%
2
31.6%
32.5%
33.1%
31.2%
31.0%
34.0%
33.5%
33.7%
3
31.9%
33.2%
31.8%
33.8%
32.3%
30.5%
33.6%
4
32.1%
33.5%
29.7%
33.8%
31.3%
31.4%
5
32.2%
34.2%
31.3%
32.0%
32.0%
6
30.9%
34.6%
31.7%
33.8%
7
31.0%
32.5%
32.4%
8
29.7%
31.9%
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
1
45.9%
43.4%
47.2%
45.6%
46.7%
50.1%
47.8%
45.5%
45.3%
47.6%
2
47.2%
48.3%
48.3%
58.0%
42.2%
49.4%
53.4%
50.7%
3
44.0%
54.5%
40.6%
48.8%
53.0%
48.6%
46.7%
4
50.4%
46.4%
46.8%
59.3%
48.1%
45.9%
5
42.4%
47.3%
43.4%
50.4%
45.5%
6
42.4%
45.6%
44.9%
49.2%
7
44.3%
48.5%
48.2%
8
50.3%
47.3%
Year
2003
2004
2005
2006
2007
2008
2009
1
16.1%
16.1%
15.4%
16.1%
15.5%
17.0%
16.8%
2
17.2%
16.9%
16.1%
19.8%
16.8%
15.8%
15.8%
3
14.8%
18.0%
15.2%
16.0%
16.5%
15.0%
17.3%
4
16.9%
15.6%
16.2%
19.1%
17.3%
15.6%
5
14.6%
17.0%
16.2%
16.3%
15.2%
6
15.2%
16.3%
15.9%
16.7%
7
15.7%
16.8%
17.3%
8
17.2%
15.9%
Accrued Expenses
Construction costs
2010
2011
Average
15.6%
16.4%
16.3%
16.4%
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average
1
4.7%
5.1%
4.6%
4.6%
4.6%
5.1%
5.2%
4.5%
4.4%
4.8%
2
5.1%
5.1%
4.7%
4.7%
5.0%
5.0%
4.8%
4.7%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Nominal
20.8
22.3
24.5
28.2
30.6
29.8
27.2
25.6
25.9
26.4
26.9
27.4
27.9
Real
25.9
26.8
28.6
32.0
33.5
32.6
28.9
26.8
26.4
26.4
26.4
26.4
26.4
Nominal
Real
3
4.9%
4.9%
4.8%
4.8%
4.6%
4.8%
4.7%
4
4.7%
4.9%
4.4%
5.0%
4.8%
4.9%
5
4.9%
4.7%
5.2%
4.7%
4.8%
6
4.5%
4.7%
5.0%
4.7%
7
4.6%
4.8%
4.6%
8
5.2%
4.9%
Refresh cost
2003
2004
Average
90.6%
79.6%
74.0%
66.0%
70.0%
9
31.5%
9
42.5%
9
15.3%
9
4.7%
Exhibit 10: Forecasting Parameters
1
Sales growth
CGS (% sales)
SGA (% sales, excluding dep & advertising)
Advertising (% sales)
Accounts Receivable (% sales)
Inventory (% next year's CGS)
Accounts Payable (% next year's CGS)
Accrued expenses (next year's SGA adv)
Depreciation (years)
Refresh cost
Corporate tax rate
Corporate expenses
Discount rate
Long-term growth rate
Shares outstanding (K)
70.9%
19.3%
10.6%
32.4%
47.6%
16.3%
4.8%
5
70.0%
40.0%
5.0%
12.1%
3.5%
9,945
2
70.2%
63.7%
18.3%
8.9%
3
33.5%
56.2%
17.3%
8.2%
4
22.9%
39.7%
13.6%
7.2%
5
9.7%
39.7%
13.6%
7.2%
6
1.5%
39.7%
13.6%
7.2%
7
0.3%
39.7%
13.6%
7.2%
Teuer Furniture Pro Forma Income Statement
Sales
CGS
SGA (exc adv & dep)
Advertising
Depreciation
Lease (stores)
Corp Expense (inc lease/adv)
Tax calculation
Tax loss carry forwards
Taxes
Net income
Parameters:
Corporate tax rate
Corporate expenses
2012
148,218
-61,955
-21,253
-10,744
-1,450
-9,320
-7,411
-14,434
0
-14,434
21,651
40%
5%
2013
165,028
69,809
23,296
12,238
1,084
10,719
8,251
2014
181,941
76,952
25,691
13,464
1,373
11,915
9,097
2015
199,623
83,512
28,136
15,061
1,959
12,724
9,981
2016
217,575
87,805
30,421
16,596
2,631
13,497
10,879
2017
231,545
91,925
32,112
17,674
2,559
13,825
11,577
2018
242,363
96,219
33,277
18,247
2,178
14,267
12,118
2019
251,183
99,721
34,161
18,882
1,828
14,516
12,559
15,852
23,778
17,380
26,069
19,300
28,950
22,298
33,447
24,749
37,124
26,423
39,634
27,807
41,710
Teuer Furniture Pro Forma Balance Sheet
2012
2013
2014
2015
2016
2017
2018
48,200
33,343
81,543
0
3,920
85,463
53,469
35,407
88,876
17,226
5,203
111,305
61,843
38,754
100,597
29,982
7,155
137,734
67,657
41,116
108,772
49,198
9,310
167,281
73,555
43,756
117,311
76,905
7,440
201,656
78,158
45,800
123,959
110,055
5,203
239,216
81,736
47,467
129,203
146,624
3,641
279,469
11,364
1,682
13,046
0
72,417
85,463
12,247
2,862
15,109
0
96,196
111,305
12,772
2,698
15,469
0
122,265
137,734
13,449
2,617
16,066
0
151,215
167,281
14,462
2,531
16,994
0
184,662
201,656
15,085
2,345
17,430
0
221,786
239,216
15,632
2,417
18,049
0
261,420
279,469
Assets
Accounts Receivable
Inventory
Total Current Assets
Cash (balance)
PPE
Total Assets
Liabilities and Equity
Accounts Payable
Accrued Expenses
Total Current Liabilities
Debt
Equity
Total Liabilities and Equity
Balance sheet check (A=L+E)
Teuer Furniture Pro Forma Cash Flow Assets
Sales
- Costs
- Taxes
Net income
- Capital expenditure
+ Depreciation
- Increase in NWC
Cash flow assets
PV
Terminal value
Asset value
Share value
Parameters:
Asset discount rate
Long-term growth rate
Shareholders (#)
Shares outstanding (K)
2012
148,218
-112,132
-14,434
21,651
-2,229
1,450
-8,365
12,508
1
12,508.10
₹ 328,148.97
₹ 440,109.09
328,149
33.00
12.1%
3.5%
187
9,945
2013
165,028
-125,398
-15,852
23,778
-2,367
1,084
-5,269
17,226
0.89
15,367.05
2014
181,941
-138,492
-17,380
26,069
-3,325
1,373
-11,361
12,756
0.80
10,150.53
2015
199,623
-151,373
-19,300
28,950
-4,114
1,959
-7,579
19,216
0.71
13,641.07
2016
217,575
-161,829
-22,298
33,447
-761
2,631
-7,610
27,707
0.63
17,545.66
2017
231,545
-169,672
-24,749
37,124
-322
2,559
-6,212
33,149
0.56
18,726.10
2018
242,363
-176,306
-26,423
39,634
-616
2,178
-4,626
36,569
0.50
240,210.5
2012
TCA
81,543
TCL
13,046
WC
68,497
Increase in NWC
2013
88,876
15,109
73,766
5,269
2014
100,597
15,469
85,128
11,361
2015
108,772
16,066
92,707
7,579
2016
117,311
16,994
100,317
7,610
2017
123,959
17,430
106,528
6,212
2018
129,203
18,049
111,154
4,626