New Heritage Doll Company_resuelto Solution

New Heritage Doll Company: Capital Budgeting Exhibit 1 ,ele(ted perating 'ro4e(tion) or  Match My Doll Clothing  Clothing  5ine  5ine Expan)ion 2010

2011

2012

2013

!"#00

$"%$0

%"!0&

52.4%

22.6%

55

55

5!

2&'5

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0

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#"02&

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&&!

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+ini,u, $ash -alance as % o /ales

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*a0s /ales 1utstandin

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!.'x

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52

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Reenue

Revenue Growth 'rodu(tion Co)t)

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perating 'roit

1"2#0

Working Capital Assumptions:

3nventor0 urnover (prod. costendin inv.) *a0s Pa0a#le 1utstandin (#ased on tot. op. exp.)

$apital Expenditures

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201!

201#

201$

201+

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201&

2020

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New Heritage Doll Company: Capital Budgeting Exhibit 2 ,ele(ted perating 'ro4e(tion) or  Design Your Own Doll  2010

2011

2012

0

$"000

Fixed Production Expense (excl depreciation)

&

65&

"aria#le Production $osts

&

225&

*epreciation

&

'&

*otal 'rodu(tion Co)t)

&

42&

Reenue

Revenue Growth 'rodu(tion Co)t)

,elling" -eneral . /dmini)tratie

2&

&

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2&

&

545&

(2&)

&

55&

perating 'roit

Working Capital Assumptions: +ini,u, $ash -alance as % o /ales

'.&%

*a0s /ales 1utstandin

5.2x

3nventor0 urnover (prod. costendin inv.)

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2013

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New Heritage Doll Company: Capital Budgeting /naly)i)  Match My Doll Clothing Line Expansion Cashflow Estimation and Investment Analysis 2010

less less less less less less add less less < add

Revenue "aria#le Production $osts Contribution Fixed Production $osts R  * expenditure /ellin +8t General and 9d,in Exp. perating 'roit *epreciation Earnins #eore ax ax Earnins ater ax *epreciation 9dd. :$ re;uired $apex

2011

2012

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7625 7625

7!&& 74&

$ashlow er,inal $ashlow = '% rowth rate

7'52&

$ashlow or the 0ear

7'52&

&

&

&

&

&

E)timation o 6or7ing Capital Re8uired

add add less <

$ash -alance (&.&' x /ales) 9c Receiva#les 3nventor0 9c Pa0a#les  >et :$ or the 0ear

2013

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2020

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New Heritage Doll Company: Capital Budgeting /naly)i)  Design Your Own Doll Cashflow Estimation and Investment Analysis 2010

less less less less less less add less less < add

Revenue "aria#le Production $osts Contribution Fixed Production $osts R  * expenditure /ellin +8t General and 9d,in Exp. perating 'roit *epreciation Earnins #eore ax ax Earnins ater ax *epreciation 9dd. :$ re;uired $apex

2011

2012

6&&&

7!4 7'6&

7&&& 746&

$ashlow er,inal $ashlow = '% rowth rate

75!

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(&&&)

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&

&

&

E)timation o 6or7ing Capital Re8uired

add add less <

$ash -alance (&.&' x /ales) 9c Receiva#les 3nventor0 9c Pa0a#les  >et :$ or the 0ear

2013

201!

201#

201$

201+

201%

201&

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2020

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