finance analysis

CH 17 HOMEWORK – WALGREENS FINANCIAL STATEMENTS.

Walgreens Income Statement

Period Ending Aug 31, 2013 Aug 31, 2012

Total Revenue 72,217,000 71,633,000

Cost of Revenue 51,098,000 51,291,000

Gross Profit 21,119,000 20,342,000

Operating Expenses

Research Development - -

Selling General and Administrative 17,543,000 16,878,000

Operating Income or Loss 3,940,000 3,464,000

Income from Continuing Operations

Total Other Income/Expenses Net 140,000 -

Earnings Before Interest And Taxes 4,060,000 3,464,000

Interest Expense 165,000 88,000

Income Before Tax 3,895,000 3,376,000

Income Tax Expense 1,445,000 1,249,000

Net Income From Continuing Ops 2,794,000 2,127,000

Net Income 2,450,000 2,127,000

CH 17 HOMEWORK – WALGREENS FINANCIAL STATEMENTS.

WALGREENS BALANCE SHEET FOR

2012 AND 2013

Period Ending

Aug 31, 2013 Aug 31, 2012

Assets

Current Assets

Cash And Cash Equivalents 2,106,000 1,297,000

Short Term Investments - -

Net Receivables 2,632,000 2,167,000

Inventory 6,852,000 7,036,000

Other Current Assets 284,000 260,000

Total Current Assets 11,874,000 10,760,000

Long Term Investments 7,100,000 7,006,000

Property Plant and Equipment 12,138,000 12,038,000

Goodwill 2,410,000 2,161,000

Intangible Assets - -

Accumulated Amortization - -

Other Assets 1,959,000 1,497,000

Deferred Long Term Asset Charges - -

Total Assets 35,481,000 33,462,000

CH 17 HOMEWORK – WALGREENS FINANCIAL STATEMENTS.

Liabilities

Current Liabilities

Accounts Payable 8,313,000 7,403,000

Short/Current Long Term Debt 570,000 1,319,000

Total Current Liabilities 8,883,000 8,722,000

Long Term Debt 4,477,000 4,073,000

Other Liabilities 2,067,000 1,886,000

Deferred Long Term Liability Charges 600,000 545,000

Total Liabilities 16,027,000 15,226,000

Stockholders' Equity

Common Stock 80,000 80,000

Retained Earnings 21,523,000 20,156,000

Treasury Stock (3,114,000) (2,985,000)

Capital Surplus 1,074,000 936,000

Other Stockholder Equity (109,000) 49,000

Total Stockholder Equity 19,454,000 18,236,000

CH 17 HOMEWORK – WALGREENS FINANCIAL STATEMENTS.

INSTRUCTIONS:

Using the Income Statement and Balance Sheet, please perform the following instructions.

1. Complete a Horizontal Analysis of the 2013 Income Statement

2. Complete a Vertical Analysis of the 2013 and 2012 Income Statement using Total Revenue as the base amount.

3. Indicate any unusual trends identified using Horizontal or Vertical Analysis.

4. Using the Balance Sheet of 2012 and 2013, compute the following ratios FOR 2012 AND 2013:

i. Current Ratio

ii. Inventory Turnover. Only Compute for 2013

iii. Gross Profit Percentage.

iv. AR Turnover. Only Compute for 2013. Please assume all revenue was sold on credit.

v. Debit-to-Equity Ratio

vi. Earnings Per Share (EPS). Please note Weighted Average Number of Shares Outstanding for 2013 was: 946,595,578 and for 2012 was 944,055,334

5. Identify any ratio changes from 2012 to 2013.