Excel

Excel Skills
Skills || Annual
Annual Cash
Cash Flow
Flow Projection
Projection Template
Template
About
About this
this template
template
This
This template
template enables
enables usersusers to to compile
compile aa 55 year year annual
annual cash
cash flow
flow projection
projection andand includes
includes aa detailed
detailed income
income statem
statem
balance
balance sheet. User input is limited to specifying the input values that form part of the template assumptions. The
sheet. User input is limited to specifying the input values that form part of the template assumptions. The temte
businesses
businesses but but can
can also
also bebe used
used for for service
service based
based businesses
businesses by by simply
simply specifying
specifying aa 100%
100% gross
gross profit
profit percentage
percentage in in th
t
About
About ourour unique
unique templates
templates
Our
Our unique,
unique, practical
practical templates
templates produce
produce results
results thatthat are
are more
more comparable
comparable to to software
software solutions
solutions than
than regular
regular Excel
Excel tem te
only
only contain
contain limited
limited functionality
functionality but but our
our templates
templates produce
produce complex
complex automated
automated reports
reports based
based onon limited
limited user
user input.
input. Y
Excel
Excel skills
skills in
in order
order toto use
use our
our templates
templates -- all all our
our templates
templates only
only require
require basic
basic user
user input
input and
and include
include comprehensive
comprehensive ste ste
About this sample
About this sample file file
This
This Excel
Excel document
document is is only
only aa sample
sample of of the
the annual
annual cash
cash flow
flow projection
projection template.
template. Weve
Weve created
created this
this sample
sample toto enabl
enab
and
and features
features of of this
this template.
template. You You will
will therefore
therefore notnot bebe able
able to
to use
use this
this version
version ofof the
the template
template -- the
the full
full version
version of
of the
the tem
tem
after
after buying
buying thethe template
template or or aa full
full membership
membership of of the
the Excel
Excel Skills
Skills website.
website.
Our
Our full
full membership
membership includes: includes:
Access
Access to to all
all 40+
40+ of of our
our unique
unique Excel
Excel templates
templates
365
365 days access to our 300+ Excel video
days access to our 300+ Excel video tutorials
tutorials

Buy this template

enable editing & click here
dd includes
includes aa detailed
detailed income
income statement,
statement, cashcash flow
flow statement
statement and
and
of the template assumptions. The template is ideal for trade
f the template assumptions. The template is ideal for trade based
based
g aa 100%
100% gross
gross profit
profit percentage
percentage in
in the
the template
template assumptions.
assumptions.

ware
ware solutions
solutions than
than regular
regular Excel
Excel templates.
templates. Most
Most Excel
Excel templates
templates
eports
eports based
based onon limited
limited user
user input.
input. You
You also
also don't
don't need
need advanced
advanced
input
input and
and include
include comprehensive
comprehensive step
step by
by step
step instructions.
instructions.

. Weve
Weve created
created thisthis sample
sample to
to enable
enable customers
customers toto view
view the
the layout
layout
ee template
template -- the
the full
full version
version of
of the
the template
template can
can only
only be
be downloaded
downloaded

s template Register for a full membership

ng & click here enable editing & click here
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

This template enables users to compile a 5 year annual cash flow projection and includes a detailed income statement, cash
flow statement and balance sheet. User input is limited to specifying the input values that form part of the template
assumptions. The template is ideal for trade based businesses but can also be used for service based businesses by simply
specifying gross profit percentages of 100% in the template assumptions.

Note: The templates section of our website also includes a Monthly Cash Flow template and a Forecast vs Actual Cash Flow
template which enable users to compile a 36 month cash flow forecast and to compare the forecasted balances to actual
account balances.

The following sheets are included in this template:

Assumptions - this sheet contains all the user input values that are used in order to compile the annual cash flow
projections. Additional expense accounts can be added by inserting the appropriate number of rows in the Expenses section
on this sheet.
IncState - this sheet includes a detailed income statement for a five year period. All the calculations on this sheet are
automated and based on the input values that are specified on the Assumptions sheet. Additional expense accounts can be
added by inserting the appropriate number of accounts on the Assumptions sheet (and on this sheet) and copying the
formulas from any of the existing rows in the Expenses section on this sheet.
CashFlow - this sheet includes a detailed cash flow statement for a five year period. All the calculations on this sheet are
automated and based on the input values that are specified on the Assumptions sheet. No user input is required on this
sheet.
BalanceSheet - all balance sheet account balances are automatically calculated from the input values that are specified on
the Assumptions sheet. No user input is required on this sheet.
Loans - this sheet includes a loan amortization table which is used to calculate the annual interest and capital repayment
amounts relating to the start-up long term loan balance and the additional financing amounts that are entered on the
Assumptions sheet.

Template Assumptions

Turnover

The turnover amounts on the annual income statement are based on the year 1 amount that is specified on the Assumptions
sheet. All subsequent turnover amounts are calculated by applying the annual increase percentages that are specified in row
7 to the previous year's turnover amount.

Gross Profit %

The annual gross profit percentages need to be entered in row 9. The gross profit amount for the appropriate year is
calculated by multiplying the user defined gross profit percentage by the appropriate turnover amount. The cost of sales
amounts are then calculated by deducting annual gross profit amounts from the appropriate turnover amounts.

Note: If you are using the template to compile a cash flow forecast for a service based business (entities that hold no
inventory), you will need to specify a gross profit percentage of 100% in all five years. The gross profit amount that is
calculated will therefore be the same as the turnover amount and the cost of sales amount will be nil. You may also want to
consider hiding the cost of sales and gross profit rows on the IncState sheet.

Expenses

The template includes 23 default expense accounts. These expense accounts can be edited by simply replacing the default
expense description and you can delete the expenses that are not required. After customizing the list of expense accounts,
we also recommend sorting it in an ascending order based on the descriptions.

Page 3 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

Additional expense accounts can be added to the list by simply inserting a new row anywhere above the "Add new expense
items above this row" text and entering the appropriate description of the expense in column A. The Expenses section on the
income statement (IncState sheet) is automatically compiled from the expenses that are included on the Assumptions sheet.

After entering descriptions for all the required expense accounts on the Assumptions sheet, you need to enter a year 1
projection amount for each of the expenses in column C. All the expense amounts for subsequent years are calculated by
applying the annual expense increase percentages that are specified in row 35 to the appropriate previous year's expenses.

Page 4 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

Note: All the input values that are specified for turnover and expense accounts should be entered exclusive of any sales tax
that may be applicable to these line items.

Working Capital

The annual closing balances of inventory, receivables and payables are calculated based on the days that are specified in
the working capital assumptions. We believe that this is the easiest and most accurate technique for calculating the closing
balances of each working capital component at the end of the appropriate periods.

The inventory days assumption is multiplied by the average daily cost of sales amount in order to calculate the inventory
balance on the balance sheet at the end of each year. The average daily cost of sales amount is calculated by simply
dividing the appropriate annual cost of sales amount by 365 days.

The debtors days assumption is multiplied by the average daily turnover amount in order to calculate the receivables balance
on the balance sheet at the end of each year. The average daily turnover amount is calculated by simply dividing the
appropriate annual turnover amount by 365 days. The standard trading terms that are negotiated with customers can also be
entered into this input cell. If products are not sold on credit, a nil value should be entered.

The creditors days assumption is multiplied by the sum of the annual cost of sales amount and the total annual expenses
before dividing the total by 365 days in order to determine the payables balance on the balance sheet at the end of each
year. The value that is entered in this input cell should therefore be carefully considered. Even if the trading terms that are
negotiated with suppliers stipulate that payments are only due 30 days after the invoice date, you should take into account
that a lot of expenses are paid on a cash basis (for example: salaries & wages). You should therefore not only consider
supplier trading terms when determining the creditors days, but also the percentage of expenses & cost of sales amounts
that are paid on a cash basis.

Capital Expenditure & Depreciation

This line item relates to the acquisition of property, plant & equipment (fixed assets). It is important to note that only the cost
of fixed assets that have a useful life of more than one year should be included in this line. All fixed assets with a useful life of
less than one year should be included in the appropriate expense item.

All capital expenditure (fixed asset acquisitions) should be entered as positive values. Note that this assumption relates to
the total annual acquisition of fixed assets, not the closing balance of fixed assets at the end of each year.

The condition of all fixed assets deteriorates over time and asset depreciation is therefore usually recorded in the income
statement in order to account for the decrease in value of fixed assets. Although depreciation is a non-cash accounting
adjustment and therefore does not have a direct effect on cash flow calculations we have included depreciation in the
template assumptions in order to account for the tax effect of wear and tear tax allowances.

The depreciation amounts for each period therefore needs to be recorded in row 42 on the Assumptions sheet. These
amounts are included separately on the income statement below the Expenses section and added back from the profit or
loss for the period on the cash flow statement.

Note: The depreciation amounts need to be calculated based on the effective depreciation rate for each class of fixed assets
after taking the remaining useful life of the start-up assets into account and applying the appropriate effective depreciation
rates to all capital expenditure amounts. For the purpose of the cash flow projections, it is assumed that the wear & tear
allowances (for income tax purposes) are the same as the depreciation rates.

Additional Financing

Page 5 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

This line item relates to loans that are raised during the course of the five year cash flow projection period. The annual loan
amounts are added to the start-up long term loans amount and the interest and capital repayment amounts on the Loans
sheet are calculated based on the total of these amounts.

Note: All loan repayment calculations are based on the loan terms (interest rate, repayment period and interest only
selection) that are specified in the Loan Terms section of the Assumptions sheet.

Page 6 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

Shareholders' Contributions

This line relates to all the equity amounts that are contributed by the shareholders of the business. Annual amounts need to
be entered as positive values and are added to the Shareholders' Contributions line on the cash flow report and balance
sheet.

Start-up Balances

This section of the template assumptions relates to the balance sheet balances at the start of the cash flow projection period.
If you are compiling a cash flow projection for an existing business, you should enter the appropriate opening balance sheet
balances in this section. If the business is being acquired from another party, the balance sheet balances as per the
acquisition agreement should be entered in this section.

Note: Equity and liability balances should be entered as negative values and the total of all the start-up balances that are
entered in this section should be nil. We have added conditional formatting to the input cells in this section in order to
highlight the entire section in orange if the total of all the start-up balances does not equal nil.

Note: If you want to include a line or even several lines for start-up expenses on the income statement, you will have to
include the required accounts in the Expenses section on the Assumptions sheet, make sure that the accounts are reflected
on the income statement and then delete the formulas in all the cells that relate to subsequent years. By default, the expense
increase percentage is applied to all expenses but the formulas can simply be deleted if an expense account only relates to
the first cash flow projection year.

Loan Details

The loan details that are entered in this section are applied to the long term loan and loans raised amounts that are specified
in the template assumptions. You are required to enter the appropriate interest rate and loan repayment period and to select
"Yes" or "No" from the interest only list box. If the "Yes" option is selected (for interest only loans), no loan repayments are
included in the cash flow projections.

Note: The maximum loan repayment period that is provided for is 10 years. Refer to the Loans sheet for a loan amortization
table which contains the calculation of the interest and capital repayment amounts that are included in the cash flow
projection calculations.

Taxation

The income tax percentage that is entered in this input cell is applied to the profit before taxation in order to calculate the
taxation amount for each year (as per the income statement). If a net loss before taxation is projected, the taxation amount
will be nil and the loss will be carried over to the next cash projection period.

Income Statement

The income statement on the IncState sheet is automatically calculated from the user assumptions that are specified on the
Assumptions sheet. Most of the line item calculations are discussed in the Assumptions section of these instructions. The
only user input that is required on the IncState sheet is to add or remove expense items from the Expenses section of the
income statement.

The order in which expenses are displayed on the income statement is exactly the same as the order in which the expense
accounts are listed on the Assumptions sheet. If you remove some of the expenses from the Assumptions sheet, the row
below the last existing expense account on the income statement will include the "Add new expense items above this row"
text. This row and all the other rows below it in the Expenses section should then be deleted.

Page 7 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

If you've added additional expense accounts to the Assumptions sheet, you may notice that all the expense accounts are
probably not included on the income statement. You therefore need to insert additional rows in the Expenses section by
placing your cursor anywhere inside this section and using the Insert Rows Excel feature to insert the appropriate number of
rows. After the required number of rows has been inserted, simply copy the formulas in column A to F from one of the
existing rows and paste the formulas into the new rows. The account descriptions of the rows below the new rows will
change automatically (after inserting the new rows) and the formulas that are copied to the new rows ensure that the correct
number of accounts are now included on the sheet.

Page 8 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

Note: When all expense accounts have been included on the income statement, the description of the last expense account
on the Assumptions sheet should be the same as the description of the last expense account on the IncState sheet. We've
added conditional formatting to the Total row in the Expenses section on the income statement in order to highlight the
description of the Total row in orange if the number of expense accounts on the income statement is not the same as the
number of expense accounts on the Assumptions sheet. If the Total row therefore contains orange highlighting, check that
the correct number of expense accounts has been added to the income statement on the IncState sheet!

Refer to the Loans sheet in order to review the calculation of interest and loan repayments. The taxation amount is
calculated by applying the income tax percentage on the Assumptions sheet to the profit before taxation on the income
statement.

Note: The interest cover financial ratio is calculated by dividing the net profit before interest and taxation by the annual
interest charges and indicates whether the annual profit is sufficient to cover annual interest charges.

Cash Flow Statement

The cash flow statement on the CashFlow sheet is automatically compiled based on the user input on the Assumptions sheet
and the calculations of the balance sheet account balances on the BalanceSheet sheet. No user input is required on this
sheet.

Balance Sheet

All balance sheet balances are calculated from the input values that are specified on the Assumptions sheet and the income
statement that is compiled on the IncState sheet. No user input is required on this sheet. All the financial ratios that have
been included below the balance sheet are based on the appropriate amounts on the income statement and balance sheet.

Interest & Loan Repayments

The Loans sheet includes a loan amortization table which is used to calculate the interest charges and capital repayment
amounts that are associated with the long term loans start-up balance (specified in cell B54 on the Assumptions sheet) and
the loans raised amounts (row 44 on the Assumptions sheet). The loan terms that are displayed at the top of the sheet are
also specified on the Assumptions sheet and the same loan terms are applied to start-up and additional loan balances.

Note: When the interest only option is selected from the input cell in the Loan Details section on the Assumptions sheet, no
loan repayments are included in the amortization table or cash flow projection calculations.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility in
mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation of
your requirements.

Copyright

Page 9 of 15
Excel Skills | Annual Cash Flow Projection Template
Instructions
www.excel-skills.com

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws. Any
publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited. In
terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template
as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by
parties outside of the organisation is however expressly prohibited and represents an infringement of international copyright
laws.

Page 10 of 15
Example Trading (Pty) Limited
Cash Flow Projections - Assumptions
www.excel-skills.com
Start-up Year 1 Year 2 Year 3 Year 4 Year 5
Turnover
Annual Turnover 3,500,000
Annual Increase % 10.0% 5.0% 5.0% 5.0%
Gross Profit
Gross Profit % 35.0% 40.0% 40.0% 40.0% 35.0%
Expenses
Accounting Fees 24,000
Advertising & Marketing 60,000
Bank Charges 3,000 On
On this
this sheet:
sheet:
This
This sheet
sheet includes
includes all
all the
the input
input assumptions
assumptions that that are
are used
used toto compile
compile the
the annual
annual
Cleaning Expenses 6,000
cash
cash flow
flow projections.
projections. Simply
Simply edit
edit the
the default
default values
values to
to update
update thethe cash
cash flow
flow
Computer Expenses 4,000 projections
projections on the IncState, CashFlow and BalanceSheet worksheets. Note
on the IncState, CashFlow and BalanceSheet worksheets. Note
Consumables 15,000 that
that you
you can
can add
add additional
additional expense
expense accounts
accounts byby inserting
inserting the
the appropriate
appropriate
Electricity & Water 12,000 number
number of of rows
rows onon this
this sheet
sheet and
and on
on thethe IncState
IncState sheet.
sheet. IfIf you
you want
want to
to use
use this
this
Entertainment 8,000 template
template for
for aa service
service based
based business,
business, simply
simply enter
enter gross
gross profit
profit percentages
percentages of of
100%.
100%.
Equipment Hire 6,000
Insurance 10,000
Legal Fees 4,500
Motor Vehicle Expenses 36,000
Postage 2,000
Printing & Stationery 5,500
Professional Fees 17,000
Rent 120,000
Repairs & Maintenance 11,000
Salaries & Wages 245,000
Security 13,000
Subscriptions 5,800
Telephone & Fax 28,000
Training 18,000
Uniforms 5,000
Add new expense items above this row
Annual Increase % 7.0% 6.0% 6.0% 6.0%
Working Capital
Inventory Days 20 20 20 20 20
Debtors Days 30 30 30 30 30
Creditors Days 20 20 20 20 20
Capital Expenditure
Annual Capital Expenses - - 50,000 100,000 70,000
Depreciation Expense 240,000 240,000 250,000 110,000 44,000
Additional Financing
Loans Raised 20,000 10,000 20,000 30,000 15,000
Shareholders' Contributions
Contributions by Shareholders - 500 - - -
Start-up Balances
Property, Plant & Equipment 800,000
Inventory 100,000
Debtors 240,000
Cash 1,000
Share Capital (1,000)
Retained Earnings -
Long Term Loans (1,000,000)
Creditors (140,000)
Loan Terms
Interest Rate 10.50%
Repayment Period (in years) 5.0
Interest Only No
Taxation
Income Tax % 28.0%
Business Details
Business Name Example Trading (Pty) Limited

Page 11 of 15
Example Trading (Pty) Limited
Cash Flow Projections - Income Statement
www.excel-skills.com
Year 1 Year 2 Year 3 Year 4 Year 5
Turnover 3,500,000 3,850,000 4,042,500 4,244,625 4,456,856

Cost of Sales 2,275,000 2,310,000 2,425,500 2,546,775 2,896,957

Gross Profit 1,225,000 1,540,000 1,617,000 1,697,850 1,559,900

Gross Profit % 35.0% 40.0% 40.0% 40.0% 35.0%

Expenses
Accounting Fees 24,000 25,680 27,221 28,854 30,585
Advertising & Marketing 60,000 64,200 68,052 72,135 76,463
Bank Charges 3,000 3,210 3,403 3,607 3,823
On
On this
this sheet:
sheet:
Cleaning Expenses The 6,000 6,420 sheet is automatically
6,805 7,214 7,646
The income
income statement
statement onon this
this sheet is automatically compiled
compiled from
from the
the
Computer Expenses input cells
cells on
4,000
input on the
the Assumptions
4,280
Assumptions sheet. IfIf you
4,537
sheet. you require additional
require4,809
additional 5,098
Consumables expenses,
15,000simply
expenses, simply insert
insert the
the appropriate
16,050 number
number of
appropriate17,013 of rows and
and copy
rows18,034 copy the
the 19,116
Electricity & Water formulas
formulas from
from
12,000 one
one of
of the
the existing
existing
12,840 rows
rows in
in the
the
13,610 Expenses
Expenses 14,427 of
section
section of the
the 15,293
income statement.
statement. This
income8,000 This sheet
sheet requires
requires no
no user
user input
input aside
aside from
from adding
adding
Entertainment 8,560 9,074 9,618 10,195
additional
additional expenses.
expenses.
Equipment Hire 6,000 6,420 6,805 7,214 7,646
Insurance 10,000 10,700 11,342 12,023 12,744
Legal Fees 4,500 4,815 5,104 5,410 5,735
Motor Vehicle Expenses 36,000 38,520 40,831 43,281 45,878
Postage 2,000 2,140 2,268 2,405 2,549
Printing & Stationery 5,500 5,885 6,238 6,612 7,009
Professional Fees 17,000 18,190 19,281 20,438 21,665
Rent 120,000 128,400 136,104 144,270 152,926
Repairs & Maintenance 11,000 11,770 12,476 13,225 14,018
Salaries & Wages 245,000 262,150 277,879 294,552 312,225
Security 13,000 13,910 14,745 15,629 16,567
Subscriptions 5,800 6,206 6,578 6,973 7,391
Telephone & Fax 28,000 29,960 31,758 33,663 35,683
Training 18,000 19,260 20,416 21,641 22,939
Uniforms 5,000 5,350 5,671 6,011 6,372
Total Expenses 658,800 704,916 747,211 792,044 839,566

Depreciation 240,000 240,000 250,000 110,000 44,000

Profit / (Loss) before Interest & Tax 326,200 595,084 619,789 795,806 676,333

Interest 107,100 90,781 73,518 54,931 31,976

Taxation 61,348 141,205 152,956 207,445 180,420

Profit / (Loss) for the year 157,752 363,098 393,315 533,430 463,937
Net Profit % 4.5% 9.4% 9.7% 12.6% 10.4%

Interest Cover 3.05 6.56 8.43 14.49 21.15

Page 12 of 15
Example Trading (Pty) Limited
Cash Flow Projections - Cash Flow Statement
www.excel-skills.com
Year 1 Year 2 Year 3 Year 4 Year 5
Cash flows from operating activities
Profit / (Loss) for the year 157,752 363,098 393,315 533,430 463,937
Interest 107,100 90,781 73,518 54,931 31,976
Taxation 61,348 141,205 152,956 207,445 180,420
Adjustment for non-cash expenses:
Depreciation 240,000 240,000 250,000 110,000 44,000
Changes in operating assets & liabilities
Inventory (24,658) (1,918) (6,329) (6,645) (19,188)
Receivables (47,671) (28,767) (15,822) (16,613) (17,444)
Payables 20,756 4,445 8,646 9,102 21,792
Cash generated from operations 514,627 808,844 856,285 891,650 705,494
Interest paid (107,100) (90,781) (73,518) (54,931) (31,976)
Taxation paid (61,348) (141,205) (152,956) (207,445) (180,420)
Net cash from operating activities 346,179 576,858 629,811 629,274 493,097

Cash flows from investing activities

On
On this
this sheet:
sheet:
Purchases of property, plant & equipment The
The cash- flow
cash statement- on
flow statement on this (50,000)
this sheet
sheet is (100,000)
is automatically
automatically compiled from(70,000)
compiled from
Net cash used in investing activities the input cells on the Assumptions sheet. No user input is required
the input cells on the Assumptions sheet. No user input is required(70,000)
- - (50,000) (100,000)
on
on this
this sheet.
sheet.
Cash flows from financing activities
Proceeds from shareholders' contributions - 500 - - -
Proceeds from loans 20,000 10,000 20,000 30,000 15,000
Repayment of loans (165,419) (184,410) (207,016) (233,618) (260,581)
Net cash from financing activities (145,419) (173,910) (187,016) (203,618) (245,581)

Increase / (Decrease) in cash equivalents 200,760 402,948 392,794 325,655 177,517

Cash & cash equivalents at beginning of year 1,000 201,760 604,709 997,503 1,323,158

Cash & cash equivalents at end of year 201,760 604,709 997,503 1,323,158 1,500,675

Page 13 of 15
Example Trading (Pty) Limited
Cash Flow Projections - Balance Sheet
www.excel-skills.com
Start-up Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Property, Plant & Equipment 800,000 560,000 320,000 120,000 110,000 136,000
Current Assets
Inventory 100,000 124,658 126,575 132,904 139,549 158,737
Receivables 240,000 287,671 316,438 332,260 348,873 366,317
Cash 1,000 201,760 604,709 997,503 1,323,158 1,500,675
1,141,000 1,174,089 1,367,722 1,582,667 1,921,581 2,161,729
Equity & Liabilities
Shareholders' Contributions 1,000 1,000 1,500 1,500 1,500 1,500
Retained Earnings - 157,752 520,850 914,165 1,447,595 1,911,533
Long Term Liabilities 1,000,000 854,581 680,171 493,155 289,537 43,956
Current Liabilities
Payables 140,000 160,756 165,201 173,847 182,949 204,741
1,141,000 1,174,089 1,367,722 1,582,667 1,921,581 2,161,729

Current Ratio 3.8 6.3 8.4 9.9 9.9

On this sheet:
On this sheet:
Quick Ratio 3.0 5.6 7.6 9.1 9.1
The
The projected
projected balance
balance sheet
sheet balances
balances on
on this
this sheet
sheet are
are calculated
calculated
Inventory Days automatically 20.0 20.0 20.0 the 20.0 20.0
automatically based
based on
on the
the input
input values
values that
that are
are specified
specified onon the
Debtors Days Assumptions
Assumptions sheet.
sheet. No
No user
30.0 user input
input is
is required
required on
30.0 on this
this sheet.
30.0
sheet. 30.0 30.0
Creditors Days 20.0 20.0 20.0 20.0 20.0
Debt / Equity 5.4 1.3 0.5 0.2 0.0
Return on Equity (ROE) 99.4% 69.5% 43.0% 36.8% 24.3%
Return on Net Assets (RONA) 15.6% 30.2% 27.9% 30.7% 23.7%

Page 14 of 15
Example Trading (Pty) Limited
Cash Flow Projections - Loan Repayment Schedule

Interest Rate 10.50%

Repayment Term 5
Interest Only No
www.excel-skills.com
Opening Additional Loan Interest Capital Closing
Year
Balance Financing Repayment Charged Repayment Balance
0 - 1,000,000 - - - 1,000,000
1 1,000,000 20,000 272,519 107,100 165,419 854,581
2 854,581 10,000 275,191 90,781 184,410 680,171
3 680,171 20,000 280,534 73,518 207,016 493,155
4 493,155 30,000 288,550 54,931 233,618 289,537
5 289,537 15,000 292,557 31,976 260,581 43,956
6 43,956 - 20,038 4,615 15,423 28,533
7 28,533 - 17,366 2,996 14,370 14,163
8 14,163 - 12,023 1,487 10,536 3,627
9 3,627 - 4,008 381 3,627 -
10 - - - - - -
11 - - - - - -
12 - - On
On this -
this sheet:
sheet: - - -
13 The
The annual
annual
- loan
loan amortization
amortization
- table
table on
- this
on this sheet
sheet is is- automatically
automatically- -
14 calculated
calculated
- from
from the
the long
long
- term
term loan
loan assumptions
assumptions
- that
- are
that are entered
entered- -
on
on the
the Assumptions
Assumptions sheet.
sheet. No
No user
user input
input is
is required
required on
on this
this -
15 - - - - -
sheet.
sheet.

Page 15 of 15