MOCK PROJECTION OF

FINANCIAL STATEMENTS OF

BERKSHIRE HATHAWAY INC.,

SANDHANALAKSHMY. R (I year MBA, VIT Business School, Chennai campus)Prepared

by:-

DISCLAIMER

I Sandhanalakshmy. R have prepared this report as an assignment for my class presentation for MBA programme at VIT Business school, Chennai and the data is based on the company’s website and other sources on Internet. Hence I will not be liable for any error.

Berkshire Hathaway Inc. is an American Multinational Conglomerate holding

company headquartered in Omaha, Nebraska, United States, that oversees and

manages a number of subsidiary companies. The company wholly owns GEICO,

BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, Flight

Safety International and Net Jets, an undisclosed percentage of Mars,

Incorporated, and has significant minority holdings in American Express, The

Coca-Cola Company, Wells Fargo, IBM and Restaurant Brands. Berkshire

Hathaway averaged an annual growth in book value of 19.7% to its shareholders

for the last 49 years (compared to 9.8% from the S&P 500 with dividends

included for the same period), while employing large amounts of capital, and

minimal debt.

OBJECTIVE

Projection of Profit and Loss Projection of Balance Sheet Generation of Cash Flow and Fund Flow

Statement Find Internal Rate of Return(IRR) Find the impact of GDP growth on the

company’s turnover

FIXED INVESTMENT COST

Projected Profit and Loss

CASH FLOW AND FUND FLOW STATEMENTS

BALANCE SHEET

ASSUMPTIONS

Escalation rate is assumed to be at 1% To determine the MIRR’s the re-

investment and borrowing rates are assumed to be 12% and 8% respectively. (discounting)

Straightline depreciation at 10%per annum is assumed for all fixed investments.

Reduced production cost by 5% to increase the IRR.

INTERNAL RATE OF RETURN (IRR)

REGRESSION CHART

REGRESSION GRAPH

Y-Axis: GDP of U.S ( in trillion USD)X-Axis: Turnover of Berkshire Hathaway (in million USD)