C D E F G M 2 N 0 1 2 3 3 REVENUE 4 5 600 624 649 4 COGS 450 5 GROSS PROFIT 150 656&A 75 27 79 7 DEPRECIATION 30 30 30 22 OPERATING INCOME 45 9 EBITDA 75 10 Debt 300 60 300 300 11 12 13 NOTES 14 15 (1) Revenue increase in year 2 is 4% volume driven, 0% price driven 16 (2) Revenue increase in year 3 is 3% price driven, 1% volume driven 17 (3) In year 3, $250 of COGS are variable and $200 are fixed 18 20 1. Calculate Gross Profit and EBITDA in years 2 and 3. 21 22 23 241 25 26 27 2. Caluciate Debt/EBITDA and interest coverage in year 3 28 29 30 31 32 33 34 35 36 37 3. Project Revenue, COGS and EBITDA in years 4 and 5. Assume 5% revenue growth driven by 3% volume increase and 2% price increase in each year. 38 39 4. Calculate Debt/EBITDA and interest coverage in years 4 and 5 40