REVENUE 2 600 3 4 COGS 624 5 649 GROSS PROFIT 450 SGamp; A 150 DEPRECIATION 75 77 30 79 OPERATING INCOME 30 30 EBITDA 45 75 Debt 300 300 300 NOTES :...
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REVENUE260034COGS6245649GROSS PROFIT450SG& A150DEPRECIATION75773079OPERATING INCOME3030EBITDA4575Debt300300300NOTES :( 1 ) Revenue increase in year 2 is 4% volume driven , 0% price driven( 2 ) Revenue increase in year 3 is 3% price driven , 1% volume driven( 3 ) In year 1 , $250 of COGS are variable and $200 are fixed1 . Calculate Gross Profit and EBITDA in years 2 and 3.2 . Caluclate Debt / EBITDA and interest coverage in year 33 . Project Revenue , COGS and EBITDA in years 4 and 5 . Assume 5%revenue growth driven by 3% volume increase and 2% price increasein each year .4 . Calculate Debt / EBITDA and interest coverage in years 4 and 5 .
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