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Harmonic Hearing

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Submitted By scotta0053412
Words 456
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Harmonic Hearing Co.
Exhibit 2: Financial Forecasts Under Equity Financing Alternative

Year
Sales - existing hearing aids
Sales - new hearing aids
Total sales
COGS - existing hearing aids
COGS - new hearing aids
Selling, general & administrative
Research & development
Depreciation - new equipment
Depreciation - existing equipment
Rent payments
Equipment lease payments
Operating income
Interest
Income before income taxes
Income taxes
Net income
+ Depreciation - all equipment
- Investment in equipment
- Investment in accounts receivable
- Investment in inventory
+ Increase in accounts payable
- Principal repayments
Free cash flow
Terminal value (cash from sale)

2011
2012
2013
1
2
3
$30,687,000 $31,454,000 $31,861,000
$3,236,000 $7,551,000 $10,949,000
$33,923,000 $39,005,000 $42,810,000
$13,502,280 $13,839,760 $14,018,840
$1,229,680 $2,869,380 $4,160,620
$12,212,280 $14,041,800 $15,411,600
$1,700,000
$600,000
$600,000
$1,167,000
$0
$0
$4,111,760
$0
$4,111,760
$1,397,998
$2,713,762

$1,167,000
$0
$0
$6,487,060
$0
$6,487,060
$2,205,600
$4,281,460

$1,167,000
$0
$0
$7,451,940
$0
$7,451,940
$2,533,660
$4,918,280

$1,167,000

$1,167,000

$1,167,000

$7,549,002
$2,767,967
$1,660,780
$0

$7,737,684
$2,837,151
$1,702,290
$0

$7,837,806
$2,873,862
$1,724,317
$0

2014
2015
2016
4
5
6
$30,427,000 $28,298,000 $23,234,000
$15,548,000 $21,456,000 $28,966,000
$45,975,000 $49,754,000 $52,200,000

2017
7
$15,488,000
$39,104,000
$54,592,000

$13,387,880 $13,017,080 $10,222,960
$5,908,240 $8,153,280 $11,007,080
$16,551,000 $17,911,440 $18,792,000
$60,000
$600,000
$600,000

$6,814,720
$14,859,520
$19,653,120
$600,000

$1,167,000
$0
$0
$8,900,880
$0
$8,900,880
$3,026,299
$5,874,581

$1,167,000 $1,167,000
$0
$0
$0
$0
$8,905,200 $10,410,960
$0
$0
$8,905,200 $10,410,960
$3,027,768 $3,539,726
$5,877,432 $6,871,234

$1,167,000
$0
$0
$11,497,640
$0
$11,497,640
$3,909,198
$7,588,442

$1,167,000

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