Harmonic Hearing

In: Business and Management

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

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
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)

$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









$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


$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



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



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