The Inc Stmt, Bal Sht, Cash Flw tabs and The Inc Stmt, Bal Sht, Ratios, Equa tabs

Instructions Page

This worksheet will be used for EOC 11 & EOC 12.

Print all of the tabs:

Inc Stmt

,

Bal Sht

,

Cash Flw

,

Ratios

,

Equa

The Inc Stmt, Bal Sht, Cash Flw tabs will be used for EOC 11. The Inc Stmt, Bal Sht, Ratios, Equa tabs will be used for EOC 12.

Inc Stmt

07

8

,600

0

)

)

70 80 90 90

8,320

Net Sales

100.0% 100.0% 100.0% 100.0%

Cost of Sales

Gross Profit

Selling, G&A Exp

10.0% 10.5% 10.0%

Operating Profit

12.5%

Interest Expense

-0.5% -0.5%

Interest Income 0.2% 0.1% 0.1% 0.1% 0.1%
G(L) Sale Assets

0.5%

3.0%

Income Before Txs

Provision for Txs

4.5% 5.0%

5.5%

Net Income

10.0%

Southwest Materials, Inc.
Consolidated Statements of Income
Five Tabs, Print All of Thm
2

0 200 2009 2010 2011
Net Sales 61,540 72,

410 83,200 89,4

60 93,000
Cost of Sales 48,000 55,760 64,4

80 68,440 70
Gross Profit 13,540 16,650 18,720 21,020 22,400
Selling, G&A Exp 6,150 7,600 8,320 9,3

90 9,

30
Operating Profit 7,390 9,050 10,400 11,

630 13,100
Interest Expense (60) (150) (

420 (450) (

470
Interest Income 120
G(L) Sale Assets 190 370 2,420 2,710 2,450
Income Before Txs 7,640 9,340 12,480 13,980 15,170
Provision for Txs 2,770 3,260 4,160 4,920 5,110
Net Income 4,870 6,080 9,060 10,060
Percentage Presentation
100.0%
78.0% 77.0% 77.5% 76.5% 75.9%
22.0% 2

3.0% 22.5% 23.5% 24.1%
10.0% 1

0.5%
12.0% 12.5% 13.0% 14.1%

0.1%

0.2% -0.5%
0.3% 2.9% 2.6%
12.4% 12.9% 1

5.0% 15.6% 16.3%
4.5% 5.5%
7.9% 8.4% 10.1% 10.8%

Bal Sht

Southwest Materials, Inc.

2009 2010 2011

470 420

660

290 470

950

9,340

18,950

240 240 240 240

2,350 2,350 2,350 2,350

56,440 75,520 86,260 94,390 100,320

Consolidated Balance Sheets
2007 2008
Current Assets
Cash & Equivalents 560 3,640 4,270
Accounts Receivable (Net) 8,170 9,420 10,470 11,310 12,000
Inventories 3,190 2,

950 3,870 3,840 4,000
Prepaid Expense 660 520 750 900
Total Current Assets 12,580 13,360 15,420 19,540 21,170
Other Assets 2,590 3,800 3,880 4,380 5,000
Goodwill 1,

140 5,870 6,140 6,

830 7,000
Property, Plant & Equip.
Land 15,010 17,460 18,

910 20,110 21,770
Plant & Equip & C-I-P 65,370 76,190 89,560 94,750 101,390
Gross P. P. & E. 80,380 93,650 108,470 114,860 123,160
Less: Accum Depreciation 40,250 41,160 47,650 51,220 56,010
Net P. P. & E. 40,130 52,490 60,820 63,640 67,150
Total Assets 56,440 75,520 86,260 94,390 100,320
Current Liabilities
Accounts Payable 4,850 5,200 5,260 5,320 5,400
Accrued Liabilities 4,200 7,960 4,360 4,320 4,300
Current Portion L-T-Debt 290 1,140
Total Current Liabilities 13,450 10,090 10,780 10,650
Long-Term Debt 2,990 11,560 18,950 15,120 11,500
Deferred Income Taxes 3,

570 3,990 4,820 6,910 7,500
Accrued Employee Benefits 3,050 3,680 3,410 3,610 3,500
Total Liabilities 32,680 37,270 36,420 33,150
Stockholders’ Equity
Common Stk, $.10 Par Val 240
Capital in Excess of Par 2,

350
Retained Earnings 35,240 40,730 48,120 56,020 64,880
Less Cost of Treas Stk (340) (480) (1,720) (640) (300)
Total Stockholders’ Equity 37,490 42,840 48,990 57,970 67,170
Total Liablities & Equity

Cash Flw

Southwest Materials, Inc.

2007 2008 2009 2010 2011

Net Income 6,080 8,320 9,060

910

240

30

140

350 60 60

0

570

3,570

7,390

420 830

630 (270) 200

(140)

(90)

560 470 420

470 420 3,640

(13,470) (18,130) (7,250)

570 5,730 3,570

(370) (2,420) (2,710)

Consolidated Statements of Cash Flows
Cash, Operating Activities
Adjustments to Reconcile
Net Income to Net Cash
From Operations
Deprec/Depl/Amort 6,490 3,570
(Gain)Loss Asset Sale (370) (2,420) (2,710)
Net Changes in Operating
Assets & Liabilities
(Incr)Decr Acc Rec (1,250) (1,050) (840)
(Incr)Decr Inventories (920)
(Incr)Decr Prepaids (140) (90)
Incr(Decr) Acc Pay
Incr(Decr) Accrued Liab 3,760 (3,600) (40)
Incr(Decr) Cur L-T Debt 180 670
Net Cash, Operating Activ 9,860 6,920 9,710
Cash, Investing Activities
Purchase, P. P. & E. (13,470) (18,130) (7,250)
Proceeds, Sale of Assets 5,730
Additions, Other Assets (1,210) (80) (500)
Business Acquistions (4,730) (270) (690)
Net Cash, Investing Activ (18,840) (12,750) (4,870)
Cash, Financing Activities
Incr(Decr) L-T Debt 8,570 (3,830)
Incr(Decr) Deferred Tax 2,090
Incr(Decr) Employee Ben
Repurchase, Company Stk (1,240) 1,080
Payment of Dividends (590) (930) (1,160)
Net Cash, Financing Activ 8,890 5,780 (1,620)
Net Incr(Decr) in Cash (50) 3,220
Cash, Beginning of Year
Cash, End of Year
Because P.P.&E. was bought and sold during each year, use the following
information concerning Capital Expenditures, Proceeds and (Gain)loss.
(Capital Expenditures) (9,750)
Proceeds, P.P.&E. Sale 3,900
(Gain)Loss P.P.&E. Sale (2,450)
Net (Incr) P.P.&E. (13,270) (14,820) (6,390) (8,300)

Ratios

Southwest Materials, Inc.

2007 2008 2009 2010 2011

0.76

0.99

30

5,300 5,300 5,300 5,300

350 410 420

(90)

Other Assets 2,590 3,800 3,880 4,380 5,000
Goodwill 1,140 5,870 6,140

7,000

40,130 52,490 60,820 63,640 67,150

0.00%

0.00%

0.00%

Industrial Development Bonds

0.15% 0.25%

0.00% 0.00%

Secured Note

0.25%

Economic Value Added

Financial Statement Analysis
Liquidity Analysis
Current Ratio 1.35 0.99 1.53 1.81
Acid-Test Ratio 0.93 0.74 1.08 1.39
Acc Receivable Turnover Ratio 8.27 8.23 8.37 8.21
Days’ Sales in Receivables 43.53 43.73 43.03 43.82
Inventory Turnover Ratio 18.28 18.16 18.91 17.75
Days’ Goods in Inventory 19.69 19.82 19.04 20.28
Cash-to-Cash Operating Cycle 63.22 63.55 62.07 64.10
Solvency Analysis
Debt-to-Equity Ratio 0.51 0.76 0.63
Times Interest Earned 128.33 63.27 30.71 32.07
Profitability Analysis
Gross Margin 22.00% 22.99% 22.50% 23.50%
Profit Margin 7.91% 8.40% 1

0.00% 10.13%
Return on Assets Ratio 1.18% 9.36% 10.62% 10.35%
Return on Equity Ratio 1.73% 15.14% 18.12% 16.94%
Asset Turnover Ratio 0.15 1.10 1.03
Sales Per Employee 186.48 206.89 202.93 213.00 218.82
Gross Profit Per Employee 41.03 47.57 45.66 50.05 52.71
Net Income Per Employee 14.76 17.37 20.29 21.57 23.67
Other Data
Average Market Price Per Share 26.49 34.18 31.03 27.88
Weighted Avg Share Oustanding 5,300
Employees at Year End 330 425
Economic Value Added
Working Capital 3,240 5,330 8,760 10,520
6,830
Net Fixed Assets
Capital Employed 47,100 62,070 76,170 83,610 89,670
Average Prime Interest Rate 6.92% 4.68% 4.12% 4.34% 6.19%
Estimated W. Avg. Cost of Cap.
Unsecured Notes 0.64% 0.07% 0.03% 0.01%
Revolving Credit Agreement 6.39% 5.11% 4.50%
Industrial Development Bonds 1.39% 0.25% 1.12% 0.15% 0.50%
1.90% 0.49% 0.51%
Secured Note 2.28% 0.59% 1.00%
0.53% 0.12% 0.54% 0.75%
Total W.A.C.C. 4.46% 7.32% 4.20% 6.56% 7.00%
Net Operating Profit After Tax 4,711 5,891 6,933 7,537 8,687
(Capital Employed * WACC) 2,103 4,544 3,197 5,483 6,277
2,608 1,348 3,737 2,054 2,410

Equa

Southwest Materials, Inc.

Financial Statement Analysis

Liquidity Analysis

Current Ratio

Acid-Test Ratio

Acc Receivable Turnover Ratio

Days’ Sales in Receivables

Inventory Turnover Ratio

Cash-to-Cash Operating Cycle

Solvency Analysis

Debt-to-Equity Ratio

Times Interest Earned

Profitability Analysis

Gross Margin

Profit Margin

Return on Assets Ratio

Return on Equity Ratio

Asset Turnover Ratio

Sales Per Employee

Gross Profit Per Employee

Net Income Per Employee

Economic Value Added

= Current Assets/Current Liabilities
= (Cash+Marketable Securities+Accounts Receivable)/Cur Liab
= Net Credit Sales/Average Accounts Receivable
= Days in Period/Accounts Receivable Turnover Ratio
= Cost of Goods Sold/Average Inventory
Days’ Sales in Inventory = Days in Period/Inventory Turnover Ratio
= Days’ Sales in Inventory + Days’ Sales in Receivables
= Total Liabilities/Total Stockholders’ Equity
=(Net Income + Interest Expense + Taxes)/Interest Expense
= Gross Profit/Net Sales
= Net Income/Net Sales
= (Net Income + Interest Expense, Net of Tax)/Avg Tot Assets
= (Net Income – Pref Div)/Avg Common Stockholders’ Equity
= Net Sales/Average Total Assets
= Net Sales/Number of Employees
= Gross Profit/Number of Employees
= Net Income/Number of Employees
= Net Operating Profit After Tax – (Capital Employed * WACC)
Still stressed with your coursework?
Get quality coursework help from an expert!