Annual Income Statements$1000s20141,9231,43848511654501502113209337562013$ 1,20294026273544002075502510152013$ 1,2029402627354400207550251015DividendsAdditions to Retained Earnings561515Old Accumulated Retained EarningsAdditions to Retained EarningsNew Accumulated Retained Earnings1556710151501515Net SalesCost of Goods SoldGross ProfitSG&AResearch and DevelopmentDepreciationLease PaymentsOther Operating ExpensesEBITInterest ExpenseEBTTaxes (40%)Net IncomeSG&A = Sales, General, & AdministrativeSG&A includes Marketing ExpensesEBIT = Earnings Before Interest And TaxesEBIT is also known as Operating IncomeEBT = Earnings Before Taxes$Pierpont FishBalance Sheets As of December 31$1000’s2014AssetsCashMarketable SecuritiesAccounts ReceivableInventoriesTotal Current AssetsGross Plant and EquipmentAccumulated DepreciationNet Plant and EquipmentTotal AssetsLiabilities and EquityAccounts PayableNotes PayableAccrualsTotal Current LiabilitiesMortgageTotal LiabilitiesContributed CapitalAccumulated Retained EarningsTotal Common EquityTotal Liabilities and Equity$10Ave201420131841703646110150145365$111201151203667911006911,05572175646101165050600966145050195105143302786528510360214409575716461,05521349147743520101021257237915394966Statement of Cash FlowsFor Year 2014 ($1,000s)Funds from OperationsNet IncomeDepreciation Expense+ Increase in Accounts Payable+Increase in Accruals-Increase in Receivables-Increase in InventoriesTotal Funds from Operations$56508040(69)(50)$$Funds from Investing ActivitiesIncrease in Gross Fixed AssetsTotal Funds from Investing Activities(141)$(87)$(121)(141)Funds from Financing ActivitiesIncrease in Notes PayableIncrease in MortgagesIncrease in Contributed CapitalLess DividendsTotal Funds from Financing Activities107(285)21960Change in Cash and Marketable SecuritiesCash Flow Analysis$1000sEBITDA = EBIT + Dep Exp + Amortizatin Exp$2014163NOPAT = EBIT*(1-t)Total Net Operating Capital (TNOC)Free Cash Flow = NOPAT – Increase in TNOC$68Cash Fixed Costs = Fixed Cash Operating Costs + Interest +LeasingVariable Cost Ratio = CGS/SalesContribution Margin = (1 – CGS/Sales) = GPM%Cash Breakeven RevenueCash Burn = CGS + CFC + Taxes + DInventory +DGFA -DSpLiabCash Build = Sales – Increase in ReceivablesNet Cash Burn = – TFO Activities -TFI ActivitiesMonthly Cash BurnMonrhly BuildMonthly Net Cash BurnEBDAT = Revenues – CFC*TNOC = Cash + A/R + Inv + NFA – A/P – Accruals)$2013115$45Common Size Annual Income Statements$1000s2014Net SalesCost of Goods SoldGross ProfitSG&AResearch and DevelopmentDepreciationLease PaymentsOther Operating ExpensesEBITInterest ExpenseEBTTaxes (40%)Net Income2013IndustryAverage2014100%77.00%23.00%6.00%1.40%4.00%1.12%1.48%9.00%2.00%7.00%2.80%4.20%Ratio Analysis20142014A2013Ind1.00.70.62%2.20.814.00%Liquidity ratiosCurrent Ratio = CA/CLQuick Ratio = (CA – Inventories)/CLNWC to Total AssetsAsset Management ratiosTotal Asset Turnover = Sales/TAAsset Intensity = TA/SalesFixed Asset Turnover = Sales/Fixed assetsDays Sales Outstanding = Accounts receivable/Daily salesInventory Turnover = COGS/Inventories1.90250%33010Debt Management RatiosDebt Ratio = Debt-to-Assets Ratio = Total debt/TADebt-to-Equity Ratio = Total debt/Total common equityEquity Multiplier = TA/TotalEquityTimes Interest Earned = EBIT/Interest expenseInterest Coverage = EBITDA/Interest ExpenseFixed Charge Coverage Coverage Ratio* = (EBITDA +Leasing)/(Int. + Lease + Rep.)35.0%0.541.545.09.03.0Profitability ratiosGross Profit Margin = Gross Profit /SalesOperating Profit Margin = EBIT/SalesNOPAT Margin = NOPAT/salesNet Profit Margin = Net income/SalesBasic Earning Power = EBIT/TAReturn on Assets = Net income/TAReturn on Equity = Net income/Total common equity23.00%9.00%5.40%4.20%18.00%11.00%19.00%Cash Conversion CycleAverage201412%Marginal InterestSales / DayCGS/DaySimple201412%Simple201313%Purchase to Payment Period = Sp. Lib / CGS per dayInventory to Sale Period = Inv. / CGS per daySale to Cash = Accs Rec / Sales per dayCash Conversion Cycle (C3)InputsD Payables DaysD Inventory DaysD Receivables PeriodResulting Decrease in Financing CostsFrom D in Payables DaysFrom D in Inventory DaysFrom D in Receivables PeriodTotal SavingsSee Page 161 of the Text.Days of InventoryDays PayablesDays ReceivablesCash Conversion Cycle C3
bigthoughtwritingservices is a unique service that provides guidance with different types of content. Please rest assured that the service is absolutely legal and doesn’t violate any regulations. It can be used for generating new ideas and thoughts for your own project, additional insight into the subject, or encouragement for further researches.