You have been asked to evaluate Company A and Company B and make your recommendation for acquiring one or both companies. Based on your initial assessment, you have created balanced scorecards for both companies. You are now ready to analyze the informati
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MBA620TransglobalAirLinesFinancialInformation.xlsxINSTRUCTIONS
BigCo_BalanceSheet2019
| 3/4/21 | |||||||||||||||||||
| TransGlobal Airlines, Inc. | |||||||||||||||||||
| Consolidated Balance Sheet | |||||||||||||||||||
| (For instructional purposes only) | |||||||||||||||||||
| (in millions, except share data) | 12/31/19 | 12/31/18 | |||||||||||||||||
| ASSETS | |||||||||||||||||||
| Current Assets: | |||||||||||||||||||
| Cash and Cash Equivalents | $ 908 | $ 493 | |||||||||||||||||
| Accounts receivable, net of an allowance for uncollectible accounts of $4.1 and $3.8 at December 31, 2019 and 2018, respectively | 899 | 729 | |||||||||||||||||
| Fuel Inventory | 230 | 186 | |||||||||||||||||
| Expendable parts and supplies inventories, net of an allowance for obsolescence of $25.8 and $32.12 at December 31, 2019 and 2018, respectively | 164 | 146 | |||||||||||||||||
| Prepaid Expenses and Other | 397 | 443 | |||||||||||||||||
| Total Current Assets | $ 2,598 | $ 1,996 | |||||||||||||||||
| Noncurrent Assets: | |||||||||||||||||||
| Property and Equipment, net of accumulated depreciation and amortization of $5,360 and $4,983 at December 31, 2019 and 2018, respectively | 9,860 | 8,923 | |||||||||||||||||
| Operating Lease Right-of-Use Assets | 1,772 | 1,888 | |||||||||||||||||
| Goodwill | 3,080 | 3,080 | |||||||||||||||||
| Identifiable Intangibles, net of accumulated amortization | 1,626 | 1,521 | |||||||||||||||||
| Cash Restricted for Airport Construction | 200 | 358 | |||||||||||||||||
| Other Noncurrent Assets | 1,186 | 1,212 | |||||||||||||||||
| Total Noncurrent Assets | $ 17,724 | $ 16,981 | |||||||||||||||||
| Total Assets | $ 20,321 | $ 18,978 | |||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Current Liabilities: | |||||||||||||||||||
| Current Maturities of Debt and Finance Leases | 72 | 478 | |||||||||||||||||
| Current Maturities of Operating Leases | 252 | 301 | |||||||||||||||||
| Air Traffic Liability | 1,611 | 1,468 | |||||||||||||||||
| Accounts Payable | 1,028 | 937 | |||||||||||||||||
| Accrued Salaries and Related Benefits | 1,165 | 1,035 | |||||||||||||||||
| Loyalty Program Deferred Revenue | 1,014 | 941 | |||||||||||||||||
| Fuel Card Obligation | 232 | 339 | |||||||||||||||||
| Other Accrued Liabilities | 339 | 352 | |||||||||||||||||
| Total Current Liabilities | $ 6,362 | $ 5,850 | |||||||||||||||||
| Noncurrent Liabilities: | |||||||||||||||||||
| Debt and Finance Leases | 2,794 | 2,599 | |||||||||||||||||
| Pension, Postretirement, and Related Benefits | 2,662 | 2,885 | |||||||||||||||||
| Loyalty Program Deferred Revenue | 1,105 | 1,150 | |||||||||||||||||
| Noncurrent Operating Leases | 1,667 | 1,827 | |||||||||||||||||
| Deferred Income Taxes, net | 458 | 51 | |||||||||||||||||
| Other Noncurrent Liabilities | 436 | 305 | |||||||||||||||||
| Total Noncurrent Liabilities | $ 9,123 | $ 8,818 | |||||||||||||||||
| Commitments and Contingencies | |||||||||||||||||||
| Stockholders' Equity: | |||||||||||||||||||
| Common Stock at $0.0001 par value; 1,500,000,000 shares authorized | |||||||||||||||||||
| Additional Paid-in Capital | 3,505 | 3,675 | |||||||||||||||||
| Retained Earnings | 3,922 | 3,161 | |||||||||||||||||
| Accumulated Other Comprehensive Loss | (2,516) | (2,464) | |||||||||||||||||
| Treasury Stock, at cost | (74) | (62) | |||||||||||||||||
| Total Stockholders' Equity | $ 4,893 | $ 4,310 | |||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ 20,321 | $ 18,978 | |||||||||||||||||
| Copyright, SNHU, 2021. All rights reserved. | |||||||||||||||||||
Big_INCOME_2019
| 3/4/21 | ||||||||||||
| TransGlobal, Inc. | ||||||||||||
| Consolidated Statement of Operations (INCOME STATEMENT) | ||||||||||||
| (For instructional purposes only) | ||||||||||||
| All values in millions, except per-share data | 2019 | 2018 | 2017 | |||||||||
| Operating Revenue: | ||||||||||||
| Passenger | $13,313 | $12,519 | $11,635 | |||||||||
| Cargo | 237 | 272 | 234 | |||||||||
| Other | 1,252 | 1,202 | 1,085 | |||||||||
| Total operating revenue | 14,803 | 13,994 | 12,954 | |||||||||
| Operating Expense: | ||||||||||||
| Salaries and related costs | 3,535 | 3,383 | 3,167 | |||||||||
| Aircraft fuel and related taxes | 2,683 | 2,840 | 2,127 | |||||||||
| Regional carriers expense, excluding fuel | 1,129 | 1,083 | 1,091 | |||||||||
| Contracted services | 832 | 685 | 664 | |||||||||
| Depreciation and amortization | 813 | 733 | 700 | |||||||||
| Passenger commissions and other selling expenses | 628 | 611 | 575 | |||||||||
| Landing fees and other rents | 555 | 523 | 473 | |||||||||
| Aircraft maintenance materials and outside repairs | 551 | 496 | 501 | |||||||||
| Profit sharing | 517 | 410 | 335 | |||||||||
| Passenger service | 394 | 371 | 354 | |||||||||
| Ancillary businesses and refinery | 392 | 534 | 471 | |||||||||
| Aircraft rent | 133 | 124 | 111 | |||||||||
| Other | 558 | 543 | 507 | |||||||||
| Total operating expense | $12,718 | $12,336 | $11,076 | |||||||||
| Operating Income | $ 2,084 | $ 1,658 | $ 1,879 | |||||||||
| Non-Operating Expense: | ||||||||||||
| Interest expense, net | (95) | (98) | (125) | |||||||||
| Gain/(loss) on investments, net | 37 | 12 | - | |||||||||
| Miscellaneous, net | (75) | 50 | (22) | |||||||||
| Total non-operating expense, net | (132) | (36) | (147) | |||||||||
| Income Before Income Taxes | 1,952 | 1,622 | 1,732 | |||||||||
| - | ||||||||||||
| Income Tax Provision | (451) | (383) | (723) | |||||||||
| Net Income | 1,501 | 1,239 | 1,009 | |||||||||
| Basic Earnings Per Share | $2.31 | $1.79 | $1.40 | |||||||||
| Diluted Earnings Per Share | $2.30 | $1.79 | $1.40 | |||||||||
| Cash Dividends Declared Per Share | $0.48 | $0.41 | $0.32 | |||||||||
| Copyright, SNHU, 2021 All rights reserved. | ||||||||||||
BIGCASHFLOW2019
| 3/4/21 | |||||||||||||||||
| TransGlobal, Inc. | |||||||||||||||||
| Consolidated Statement of Cash Flows | |||||||||||||||||
| (All data are for educational purposes only) | |||||||||||||||||
| (in millions) | Year ending December 31, | Year ending December 31, | Year ending December 31, | ||||||||||||||
| Cash Flows From Operating Activities: | 2019 | 2018 | 2017 | ||||||||||||||
| Net income | $ 1,501.1 | $ 1,239.1 | $ 1,009.3 | ||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | $ 812.76 | $ 733.40 | $ 699.71 | ||||||||||||||
| Deferred income taxes | $ 463.85 | $ 429.52 | $ 706.01 | ||||||||||||||
| Pension, postretirement and postemployment payments greater than expense | $ (290.34) | $ (248.77) | $ (1,039.80) | ||||||||||||||
| Changes in certain assets and liabilities: | |||||||||||||||||
| Receivables | $ (244.05) | $ 34.01 | $ (134.78) | ||||||||||||||
| Fuel inventory | $ (43.77) | $ 102.03 | $ (125.02) | ||||||||||||||
| Prepaid expenses and other current assets | $ 29.60 | $ (138.56) | $ (17.95) | ||||||||||||||
| Air traffic liability | $ 142.96 | $ 93.53 | $ 89.43 | ||||||||||||||
| Loyalty program deferred revenue | $ 27.40 | $ 100.45 | $ 125.65 | ||||||||||||||
| Profit sharing | $ 111.47 | $ 73.37 | $ (16.06) | ||||||||||||||
| Accounts payable and accrued liabilities | $ 45.35 | $ (131.63) | $ 300.73 | ||||||||||||||
| Other, net | $ 96.67 | $ (77.78) | $ (15.43) | ||||||||||||||
| Net cash provided by operating activities | $ 2,653.0 | $ 2,208.7 | $ 1,581.7 | ||||||||||||||
| Cash Flows From Investing Activities: | |||||||||||||||||
| Property and equipment additions: | |||||||||||||||||
| Flight equipment, including advance payments | $ (1,053.03) | $ (1,166.39) | $ (851.49) | ||||||||||||||
| Ground property and equipment, including technology | $ (501.32) | $ (461.01) | $ (373.79) | ||||||||||||||
| Purchase of equity investments | $ (53.53) | $ - 0 | $ (392.05) | ||||||||||||||
| Sale of equity investments | $ 87.86 | $ 8.82 | $ - 0 | ||||||||||||||
| Purchase of short-term investments | $ - 0 | $ (45.66) | $ (291.28) | ||||||||||||||
| Redemption of short-term investments | $ 64.87 | $ 241.21 | $ 183.90 | ||||||||||||||
| Other, net | $ 18.26 | $ 39.68 | $ 66.44 | ||||||||||||||
| Net cash used in investing activities | $ (1,436.9) | $ (1,383.4) | $ (1,658.3) | ||||||||||||||
| Cash Flows From Financing Activities: | |||||||||||||||||
| Payments on debt and finance lease obligations | $ (1,045.47) | $ (961.07) | $ (396.14) | ||||||||||||||
| Repurchase of common stock | $ (638.30) | $ (495.97) | $ (528.09) | ||||||||||||||
| Cash dividends | $ (308.60) | $ (286.24) | $ (230.19) | ||||||||||||||
| Fuel card obligation | $ (106.75) | $ 2.20 | $ 200.28 | ||||||||||||||
| Proceeds from short-term obligations | $ 551.08 | $ - 0 | ` | $ - 0 | |||||||||||||
| Proceeds from long-term obligations | $ 647.75 | $ 1,179.30 | $ 772.76 | ||||||||||||||
| Other, net | $ (6.61) | $ 18.26 | $ (48.49) | ||||||||||||||
| Net cash used in financing activities | $ (906.9) | $ (543.5) | $ (229.9) | ||||||||||||||
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $ 309.23 | $ 281.84 | $ (306.40) | ||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | $ 865.35 | $ 583.51 | $ 889.91 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ 1,174.6 | $ 865.3 | $ 583.5 | ||||||||||||||
| Supplemental Disclosure of Cash Paid for Interest | $ 151.5 | $ 118.4 | $ 122.8 | ||||||||||||||
| Non-Cash Transactions: | |||||||||||||||||
| Treasury stock contributed to pension plans | $ - 0 | $ - 0 | $ 110.2 | ||||||||||||||
| Right-of-use assets acquired under operating leases | $ 146.1 | $ - 0 | $ - 0 | ||||||||||||||
| Flight and ground equipment acquired | $ 204.7 | $ 29.3 | $ 82.2 | ||||||||||||||
| Operating leases converted to finance leases | $ 59.8 | $ 2.2 | $ - 0 | ||||||||||||||
| The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same such amounts shown above: | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| (in millions) | 2019 | 2018 | 2017 | ||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $ 907.5 | $ 492.8 | $ 571.2 | ||||||||||||||
| Restricted cash included in prepaid expenses and other | $ 66.8 | $ 14.8 | $ 12.3 | ||||||||||||||
| Noncurrent assets: | |||||||||||||||||
| Cash restricted for airport construction | $ 200.3 | $ 357.7 | $ - 0 | ||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 1174.6 | $ | 865.3 | $ | 583.5 | |||||||||||
| Copyright, SNHU, 2021 All rights reserved |
