Tire City - Worksheet
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Transcript of Tire City - Worksheet
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Tire City, Inc.
Exhibit 1 Financial Statements
For years ending 12/31 1993 1994 1995 1996
INCOME STATEMENT
Net sales 16,230$ 20,355$ 23,505$ $ 28,206
Cost of sales 9,430 11,898 13,612 16,403
Gross profit 6,800 8,457 9,893 11,803
SG&A expenses 5,195 6,352 7,471 8,932
Depreciation (on existing PPE) 160 180 213 213
Depreciation (on new warehouse)
Operating Income (EBIT) 1,445 1,925 2,209 2,658
Interest expense (on existing loan) 119 106 94 63
Interest expense (on new loan) 37
Pre-tax income 1,326 1,819 2,115 2,559
Income taxes 546 822 925 1,110
Net Income 780$ 997$ 1,190$ $ 1,449
Tax rate 41% 45% 44% 43%
STATEMENT OF RETAINED EARNINGS
Beginning balance 1,508$ 2,133$ 2,930$ $ 3,880
Net income 780 997 1,190 1,449
Dividends 155 200 240 290
Ending balance 2,133$ 2,930$ 3,880$ 5,039$
BALANCE SHEET
Cash 508$ 609$ 706$ $ 858
Excess Cash -
Accounts receivable 2,545 3,095 3,652 4,365
Inventories 1,630 1,838 2,190 1,625
Total current assets 4,683 5,542 6,548 6,848
Gross plant & equipment 3,232 3,795 4,163 6,163
1,335 1,515 1,728 1,941
Net plant & equipment 1,897 2,280 2,435 4,222
Total assets 6,580$ 7,822$ 8,983$ $ 11,070
Current maturities of LTD 125$ 125$ 125$ $ 125
Accounts payable 1,042 1,325 1,440 1,792
Accrued expenses 1,145 1,432 1,653 1,986Total current liabilities 2,312 2,882 3,218 3,903
Long-term debt 1,000 875 750 625
Long-term debt (new bank loan) 368
Common stock 1,135 1,135 1,135 1,135
Retained eamings 2,133 2,930 3,880 5,039
Total liabilities and equity 6,580$ 7,822$ 8,983$ 11,070$
Total Assets EXCEPT asset plug 11,070
Liab. & Equity EXCEPT liab plug 10,701
Financing plug required 368
Atual Proje
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1997 For years ending 12/31 1993
COMMON SIZE ANALYSIS (%)
$ 33,847 20% Growth rate Net sales 100.00%
19,684 58% of Sales Cost of sales 58.10%
14,163 Gross profit 41.90%
10,718 32% of Sales SG&A expense 32.01%
213 the same as 1995 Depreciation 0.99%
120 5% of cost of new warehouse Depreciation (on new warehouse) 0.00%
3,232 Operating income (EBIT) 8.90%
50 10% on LTD Interest expense (STD) 0.73%
103 10% on LTD Interest expense (LTD) 0.00%
3,079 Pre-tax income 8.17%
1,335 43% Tax rate Tax allowance 3.36%
$ 1,744 Net income 4.81%
43% Dividend Payout Ratio 19.87%
$ 5,039 ACTIVITY RATES
1,744 Sales per day (365 day/yr) $ 44.47
349 20% of Net income Cost of sales per day $ 25.84
6,433$
ACTIVITY RATIOS
$ 1,030 3% of Sales Cash on hand % of sales 3.13%
- ASSET PLUG Account receivable % of sales 15.68%
5,238 15% of Sales Inventory % of sales 10.04%
3,203 9% of Sales for 1997 Account payable % of sales 6.42%
9,470 Accrued expense % of sales 7.05%
6,563 add. $2,000 in 1996, $400 in 1997
2,274
4,289 LIQUIDITY RATIOS
$ 13,759 Current ratio 2.03
Quick ratio 1.32
$ 125 Cash ratio 0.22
2,150 6% of Sales
2,383 7% of Sales4,658 LEVERAGE RATIOS
500 Total debt to assets 0.50
1,033 LIAB. PLUG Long term debt to equity 0.31
1,135 Time interest earned 12.14
6,433
13,759$
PROFITABILITY RATIOS
13,759 Gross profit margin 41.90%
12,726 Operating profit margin 8.90%1,033 Net profit margin 4.81%
Return on assets 11.85%
Return on equity 23.87%
tions Assumptions
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1994 1995 1996 1997
100.00% 100.00% 100.00% 100.00%
58.45% 57.91% 58.16% 58.16%
41.55% 42.09% 41.84% 41.84%
31.21% 31.78% 31.67% 31.67%
0.88% 0.91% 0.76% 0.63%
0.00% 0.00% 0.00% 0.35%
9.46% 9.40% 9.42% 9.55%
0.52% 0.40% 0.22% 0.15%
0.00% 0.00% 0.13% 0.31%
8.94% 9.00% 9.07% 9.10%
4.04% 3.94% 3.93% 3.94%
4.90% 5.06% 5.14% 5.15%
20.06% 20.17% 20.03% 20.03%
$ 55.77 $ 64.40 $ 77.28 $ 92.73
$ 32.60 $ 37.29 $ 44.94 $ 53.93
2.99% 3.00% 3.04% 3.04%
15.21% 15.54% 15.47% 15.47%
9.03% 9.32% 5.76% 9.46%
6.51% 6.13% 6.35% 6.35%
7.04% 7.03% 7.04% 7.04%
1.92 2.03 1.75 2.03
1.29 1.35 1.34 1.35
0.21 0.22 0.22 0.22
0.48 0.44 0.44 0.45
0.22 0.15 0.16 0.20
18.16 23.50 26.76 21.08
41.55% 42.09% 41.84% 41.84%
9.46% 9.40% 9.42% 9.55%
4.90% 5.06% 5.14% 5.15%
12.75% 13.25% 13.09% 12.67%
24.53% 23.73% 23.47% 23.04%
