ting Assumptions Miscellaneous revenue from order installations 15.00% 25.00% 35.00% (% collection) Amount per order $3,500 $3,500 $3,500 Tax rate (single value) 39.00% Annual bad debt expense (based on revenues) 2.50% Distribution Fraction Fraction Fraction Fraction of revenue revenue collected paidout by sales elements revenue retained revenue revenue 1st year Retail, direct Wholesale, direct Retail, channel Wholesale, channel Practical Design and Economic Parameters Table 10-7 cont. Distribution Fraction Fraction Fraction Fraction Operating of revenue revenue collected paidout Assumptions by sales elements revenue retained revenue revenue 2nd year Retail, direct Wholesale, direct Retail, channel Wholesale, channel 3rd year Retail, direct Wholesale, direct Retail, channel Wholesale, channel 4th year Retail, direct Wholesale, direct Retail, channel Wholesale, channel 5th year Retail, direct Wholesale, direct Retail, channel Wholesale, channel Table 10-8 depicts the kind of financial data you can derive from the model. Supporting these numbers is a balance sheet, cash flows, and state- ment of operations (not shown). Chapter 10 Table 10-8 Cumulative five years Summarized Finan- cial Information Total revenues $2,507,887,112 Expenses Building and CO order costs $48,335,732 1.93% Facilities administration and maintenance $628,775,830 25.07% $577,032,872 23.01% Bad debt expense $62,697,178 2.50% Depreciation and amortization $139,871,188 5.58% Total costs and expenses $1,456,712,800 58.09% Income (loss) from operations $1,051,174,314 41.91% Other income (expense) Interest and other income $38,192,560 1.52% Interest expense ($255,789,176) -10.20% Total other income (expense) ($217,596,616) -8.68% Income before taxes $833,577,696 33.24% Income taxes (39%) 0.00% Net income (loss) $833,577,696 33.00% 10.3 Simplified Modeling for the Number of Orders Needed to Make Revenue Goals We alluded previously to a full-fledged model to study in detail all the intri- cacies of a business plan for a startup next-generation carrier.