Financial Statement Analysis Worksheet

Analysis of Financial Statements Balance Sheets

EXHIBITS: INPUT DATA (XYZ)

Table 1 Balance Sheets 2013E 2012 2011

Assets

Cash $ 85,632 $ 7,282 $ 57,600

Accounts receivable 878,000 632,160 351,200

Inventories 1,716,480 1,287,360 715,200

Total current assets $2,680,112 $1,926,802 $ 1,124,000

Gross fixed assets 1,197,160 1,202,950 491,000

Less: accumulated depreciation 380,120 263,160 146,200

Net fixed assets $ 817,040 $ 939,790 $ 344,800

Total assets $3,497,152 $2,866,592 $ 1,468,800

Liabilities and equity

Accounts payable $ 436,800 $ 524,160 $ 145,600

Notes payable 300,000 636,808 200,000

Accruals 408,000 489,600 136,000

Total current liabilities $1,144,800 $1,650,568 $ 481,600

Long-term bonds 400,000 723,432 323,432

Total debt $1,544,800 $2,374,000 $ 805,032

Common stock (100,000 shares) 1,721,176 460,000 460,000

Retained earnings 231,176 32,592 203,768

Total common equity $1,952,352 $ 492,592 $ 663,768

Total liabilities and equity $3,497,152 $2,866,592 $ 1,468,800

Analysis of Financial Statements Income Statements

Table 2 Income Statements 2013E 2012 2011

Sales $7,035,600 $6,034,000 $ 3,432,000

Cost of goods sold 5,875,992 5,528,000 2,864,000

Other expenses 550,000 519,988 358,672

Total operating exp. excl. depreciation and amortization $6,425,992 $6,047,988 $ 3,222,672

EBITDA $ 609,608 $ (13,988) $ 209,328

Depreciation and amortization 116,960 116,960 18,900

Earnings before interest and taxes (EBIT) $ 492,648 $ (130,948) $ 190,428

Interest expense 70,008 136,012 43,828

Earnings before taxes (EBT) $ 422,640 $ (266,960) $ 146,600

Taxes (40%) 169,056 (106,784) 58,640

Net Income $ 253,584 $ (160,176) $ 87,960

Earnings per share (EPS) $ 1.014 $ (1.602) $ 0.880

Dividends per share (DPS) $ 0.220 $ 0.110 $ 0.220

Book value per share (BVPS) $ 7.809 $ 4.926 $ 6.638

Stock price $ 12.17 $ 2.25 $ 8.50

Shares outstanding 250,000 100,000 100,000

Tax rate 40.00% 40.00% 40.00%

Lease payments $ 40,000 $ 40,000 $ 40,000

Sinking fund payments 0 0 0

Analysis of Financial Statements Ratio Analysis

Industry

2013E 2012 2011 Average

Current ratio * 1.2 2.3 2.7

Quick ratio * 0.4 0.8 1.0

Inventory turnover * 4.7 4.8 6.1

Days sales outstanding (DSO) * 38.2 37.4 32.0

Fixed assets turnover * 6.4 10.0 7.0

Total assets turnover * 2.1 2.3 2.6

Debt-to-assets ratio * 82.8% 54.8% 50.0%

Times interest earned (TIE) * -1.0 4.3 6.2

Operating margin * -2.2% 5.6% 7.3%

Profit margin * -2.7% 2.6% 3.5%

Basic earning power (BEP) * -4.6% 13.0% 19.1%

Return on assets (ROA) * -5.6% 6.0% 9.1%

Return on equity (ROE) * -32.5% 13.3% 18.2%

Price/earnings (P/E) * -1.4 9.7 14.2

Market/book (M/B) * 0.5 1.3 2.4

Book value per share (BVPS) * $4.93 $6.64 n.a.

*The calculations from your module 2 assignment would complete column 2013E. You are not required to complete the ratio analysis chart as

part of your assignment, you will submit the calculations with rationale in a word document.