Sandhanalakshmy R prepared a mock projection of Berkshire Hathaway's financial statements for an MBA class assignment. The document outlines objectives to project the profit and loss statement, balance sheet, cash flow and fund flow statements, and calculate the internal rate of return. It also aims to analyze the impact of GDP growth on Berkshire Hathaway's turnover. Key assumptions are an escalation rate of 1%, discount rates of 12% and 8% for calculations, and 10% straight-line depreciation for fixed investments.

1. MOCK PROJECTION
OF
FINANCIAL STATEMENTS
OF
BERKSHIRE HATHAWAY
INC.,
SANDHANALAKSHMY. R (I year MBA, VIT
Business School,
Chennai campus)
Prepared by:-

2. 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.

3. 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.

4. 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

5. FIXED INVESTMENT COST

6. Projected Profit and Loss

7. CASH FLOW AND FUND FLOW
STATEMENTS

8. BALANCE SHEET

9. 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.

10. INTERNAL RATE OF RETURN
(IRR)

11. REGRESSION CHART

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