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• Sur Shah

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Tire City

Projected Statements

Sales Cost of goods sold Gross profit Selling, general and administrative expenses Depreciation Net interest expenses Pre-tax income Income Tax Net Income Dividends Dividend payout ratio Balance Sheet Cash Accounts receivable Inventories Total current assets Gross plant & equipment Accumulated depreciation Net plant and equipment Total assets

Common-size statement 1993 16,230 9,430 6,800 5,195 160 119 1,326 546 780 155

1994 20,355 11,898 8,457 6,352 180 106 1,819 822 997 200

1993

1994

508 2,545 1,630 4,683 3,232 1,335 1,897 6,580

609 3,095 1,838 5,542 3,795 1,515 2,280 7,822

1995 23,505 13,612 9,893 7,471 213 94 2,115 925 1190 240

1993 100 58.1 41.9 32.0

1994 100 58.5 41.5 31.2

1995 100 57.9 42.1 31.8

Average Used 100.0 growth 20% 58.2 58.2% 41.8 31.7 31.7%

8.2 41.2 4.8

8.9 45.2 4.9

9.0 43.7 5.1

8.7 43.4 4.9

43.4%

19.87

20.06

20.17

20.0

20.0%

10.0%

1995 Sales to current asset ratios 706 3,652 2,190 6,548 4,163 1,728 2,435 8,983

3.1 15.7 10.0 28.9

3.0 15.2 9.0 27.2

3.0 15.5 9.3 27.9

3.0 15.5 9.5 28.0

0.5 6.1 7.0 13.7

0.6 6.35 7.0 14.0

3.0% 15.5% 9.5%

1996 28,206 16,416 11,790 8,941 213 113 2,523 1,095 1,428 286

1997 33,847 19,699 14,148 10,730 333 168 2,917 1,266 1,651 330

1996

1997

846 4,372 1,625 6,843.11 6,163 1,941 4,222 11,065.11

1,015.42 5,246.32 3,147.79 9,409.52 6,563.00 2,274.00 4,289.00 13,698.52

125 1,805 1,974 4,283 378.09 625 1,135 5,022 6,157 11,065.11

125 2,166 2,369 4,661 1,059.7 500 1,135 6,343 7,478 13,698.52

Sales to current liabilities Liabilities Current maturities of loang-term debt Accounts payable Accrued expenses Total current liabilities New debt (plug figure) Long-term debt Common stock Retained earnings Total shareholders' equity Total liabilities

125 1,042 1,145 2,312

125 1,325 1,432 2,882

125 1,440 1,653 3,218

1,000 1,135 2,133 3,268 6,580

875 1,135 2,930 4,065 7,822

750 1,135 3,880 5,015 8,983

0.8 6.4 7.1 14.2

Page 1 of 11

0.6 6.5 7.0 14.2

6.4% 7.0%

Financial Performance 1993 1994 Liquidity: Current ratio Quick ratio

1995

1996

1997

2.03 1.32

1.92 1.29

2.03 1.35

1.60 1.22

2.02 1.34

Margins: Gross profit margin Net profit margin

58.1% 5.5%

58.5% 5.4%

57.9% 5.5%

41.8% 5.5%

41.8% 5.4%

Return ratios: ROE=PAT/Equity ROA=(PAT+Int.)/Assets

23.9% 13.7%

24.5% 14.1%

23.7% 14.3%

23.2% 13.9%

22.1% 13.3%

Leverage: Debt-equity Debt Ratio Interest coverage (1) Interest coverage (2)

34.4% 25.6% 13.5 12.1

24.6% 19.7% 19.9 18.2

17.4% 14.9% 25.8 23.5

18.3% 15.5% 25.3 23.4

22.5% 18.4% 20.3 18.3

2.5 63.1 57.2

2.6 56.4 55.5 39.9

2.6 58.7 56.7 37.6

2.5 36.1 56.6 41.6

2.5 58.3 56.6 37.3

25.4%

15.5%

Asset Utilization: Total assets turnover=Sales/Total assets Days' inventory Days' receivable Day's payable Interest coverage (1) Interest coverage (2) Sales growth Annual purchases are =COGS+End invent.-open

=(EBIT+Depn)/Interest =EBIT/Interest

TIRE CITY - 2011-12 Particulars INCOME STATEMENT Net Sales Cost of sales Gross Profit SGA Depreciation Net Interest Exp. Pre-tax income Income Tax Net Income Dividends BALANCE SHEET ASSETS Cash Accounts Receivable Inventories Total Current Assets Gross P & E Accumulated Depreciation Net P & E Total Assets LIABILITIES Cur Mat. of LT Debt Accounts Payable Accrued Expenses Total Current Liab. Long Term Debt-Old Long Term Debt New Common Stock Retained Earnings Total SH ' Equity Total Liabilities

1993 16,230 9,430 6,800 5,195 160 119 1,326 546 780

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para 11,898 13,612 16,359 19,631 Sales 8,457 9,893 11,847 14,216 6,352 7,471 9,026 10,831 Sales Given pg. 2 para 1 96= same; 97 180 213 213 333 ++120 106 94 131 192 Avg Loan Bal. 1,819 2,115 2,477 2,860 822 925 1,090 1,258 Pre-tax income 997 1,190 1,387 1,601

155

200

240

277

508 2,545 1,630 4,683 3,232 1,335 1,897 6,580

609 3,095 1,838 5,542 3,795 1,515 2,280 7,822

706 846 1,015 3,652 4,372 5,246 2,190 1,625 3,148 6,548 6,843 9,409 4,163 6,163 6,563 1,728 1,941 2,274 2,435 4,222 4,289 8,983 11,065 13,698

3% of sales, pg. 2 3rd para Sales 1996 given, 1997: Sales*9.3%

125 1,042 1,145 2,312 1,000

125 1,325 1,432 2,882 875

Accounting Sales Sales * 7%

1,135 2,133 3,268 6,580

1,135 2,930 4,065 7,822

125 125 125 1,440 1,721 2,065 1,653 1,974 2,369 3,218 3,820 4,559 750 625 500 0 496 1,234 1,135 1,135 1,135 3,880 4,990 6,271 5,015 6,125 7,406 8,983 11,065 13,698

1993

1994

1995 Assumed

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

5.0%

0.9% 0.9% 10.03% 16.10% 8.2% 8.9% 9.0% 41.2% 45.2% 43.7% 4.8% 4.9% 5.1%

1996

1997

20.0% 20.0% 58.0% 58.0%

32.0% Same as 1992 10.0% 10.0% 8.8% 44.0% 44.0% 4.9%

32.0% 213+1 20 10.0% 8.4% 44.0% 4.7%

320 page 2, para 3

Given, pg2 para 1 Given, pg2 para 1

Given page 1 Bal. Fig Same =op+pat-div

15.7% 10.0% 25.7% 3232 1335

15.2% 9.0% 24.2% 3795 1515

15.5% 9.3% 24.9% 4163 1728

125 125 125 6.4% 6.5% 6.1% 7.1% 7.0% 7.0% 125.1 125.135 125.132 1000 875 750 1135 1135 1135 2133 2930 3880 3268 4065 5015 4393 5065.14 5890.13

15.50% 9.30% Given 0

9.30% 0.093

0

0

6.10% 7%

TIRE CITY - 2011-12 (Q 3a) Particulars INCOME STATEMENT Net Sales Cost of sales Gross Profit SGA Depreciation Net Interest Exp. Pre-tax income Income Tax Net Income Dividends BALANCE SHEET ASSETS Cash Accounts Receivable Inventories Total Current Assets Gross P & E Accumulated Depreciation Net P & E Total Assets LIABILITIES Cur Mat. of LT Debt Accounts Payable Accrued Expenses Total Current Liab. Long Term Debt-Old Long Term Debt New Common Stock Retained Earnings Total SH ' Equity Total Liabilities

1993 16,230 9,430 6,800 5,195

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para 11,898 13,612 16,359 19,631 Sales 8,457 9,893 11,847 14,216 6,352 7,471 9,026 10,831 Sales 333 Given pg. 2 para 1 96= same; 97 ++120 200 Avg Loan Bal. 2,852 1,255 Pre-tax income 1,597

160 119 1,326 546 780

180 106 1,819 822 997

213 94 2,115 925 1,190

213 294 2,313 1,018 1,295

155

200

240

259

508 2,545 1,630 4,683 3,232 1,335 1,897 6,580

609 3,095 1,838 5,542 3,795 1,515 2,280 7,822

706 846 1,015 3,652 4,372 5,246 2,190 2,623 3,148 6,548 7,841 9,409 4,163 6,163 6,563 1,728 1,941 2,274 2,435 4,222 4,289 8,983 12,063 13,698

3% of sales, pg. 2 3rd para Sales 1996 = 9.3%, 1997: Sales*9.3%

125 1,042 1,145 2,312 1,000

125 1,325 1,432 2,882 875

Accounting Sales 1996: sales * 5%; 1997 =Sales * 7%

1,135 2,133 3,268 6,580

1,135 2,930 4,065 7,822

125 125 125 1,440 1,721 2,065 1,653 1,410 2,369 3,218 3,256 4,559 750 625 500 0 2,131 1,311 1,135 1,135 1,135 3,880 4,916 6,194 5,015 6,051 7,329 8,983 12,063 13,698

1993

1994

1995 Assumed

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

5.0%

0.9% 0.9% 10.03% 36.23% 8.2% 8.9% 9.0% 41.2% 45.2% 43.7% 4.8% 4.9% 5.1%

10.0% 44.0%

319

Given, pg2 para 1 Given, pg2 para 1

Given page 1 Bal. Fig Same =op+pat-div

15.7% 10.0% 25.7% 3232 1335

15.2% 9.0% 24.2% 3795 1515

15.5% 9.3% 24.9% 4163 1728

125 125 125 6.4% 6.5% 6.1% 7.1% 7.0% 7.0% 125.1 125.135 125.132 1000 875 750 1135 1135 1135 2133 2930 3880 3268 4065 5015 4393 5065.14 5890.13

15.50% 9.30%

6.10% 7%

TIRE CITY - 2011-12 Particulars INCOME STATEMENT Net Sales Cost of sales Gross Profit SGA Depreciation Net Interest Exp. Pre-tax income Income Tax Net Income Dividends BALANCE SHEET ASSETS Cash Accounts Receivable Inventories Total Current Assets Gross P & E Accumulated Depreciation Net P & E Total Assets LIABILITIES Cur Mat. of LT Debt Accounts Payable Accrued Expenses Total Current Liab. Long Term Debt-Old Long Term Debt New Common Stock Retained Earnings Total SH ' Equity Total Liabilities

1993 16,230 9,430 6,800 5,195 160 119 1,326 546 780

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para 11,898 13,612 16,359 19,631 Sales 8,457 9,893 11,847 14,216 6,352 7,471 9,026 10,831 Sales Given pg. 2 para 1 96= same; 97 180 213 213 453 ++240 (tax depn). 106 94 100 34 Avg Loan Bal. 1,819 2,115 2,508 2,898 822 925 1,103 1,275 Pre-tax income 997 1,190 1,404 1,623

155

200

240

281

508 2,545 1,630 4,683 3,232 1,335 1,897 6,580

609 3,095 1,838 5,542 3,795 1,515 2,280 7,822

706 846 1,015 3,652 4,372 4,173 2,190 1,625 3,148 6,548 6,843 8,336 4,163 6,163 6,563 1,728 1,941 2,394 2,435 4,222 4,169 8,983 11,065 12,505

3% of sales, pg. 2 3rd para Sales*45/365 1996 given, 1997: Sales*9.3%

125 1,042 1,145 2,312 1,000

125 1,325 1,432 2,882 875

Accounting Sales*45/365 Sales * 7%

1,135 2,133 3,268 6,580

1,135 2,930 4,065 7,822

125 125 125 1,440 2,017 2,420 1,653 1,974 2,369 3,218 4,116 4,915 750 625 500 0 185 -346 1,135 1,135 1,135 3,880 5,004 6,302 5,015 6,139 7,437 8,983 11,065 12,505

1993

1994

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

0.9% 10.03% 8.2% 8.9% 41.2% 45.2% 4.8% 4.9%

0.9% 12% 9.0% 43.7% 5.1%

15.7% 10.0% 25.7% 3232 1335

15.5% 9.3% 24.9% 4163 1728

5.0%

1995 Assumed

10.0% 44.0%

325

Given, pg2 para 1 Given, pg2 para 1

Given page 1 Bal. Fig Same =op+pat-div

new 15.2% 9.0% 24.2% 3795 1515

12.3% 9.30%

125 125 125 new 6.4% 6.5% 6.1% 7.15% 7.1% 7.0% 7.0% 7% 125.1 125.135 125.132 1000 875 750 1135 1135 1135 2133 2930 3880 3268 4065 5015 4393 5065.14 5890.13

TIRE CITY - 2011-12 Particulars INCOME STATEMENT Net Sales Cost of sales Gross Profit SGA Depreciation Net Interest Exp. Pre-tax income Income Tax Net Income Dividends BALANCE SHEET ASSETS Cash Accounts Receivable Inventories Total Current Assets Gross P & E Accumulated Depreciation Net P & E Total Assets LIABILITIES Cur Mat. of LT Debt Accounts Payable Accrued Expenses Total Current Liab. Long Term Debt-Old Long Term Debt New

1993 16,230 9,430 6,800 5,195 160 119 1,326 546 780

1994

1995

1996

20,355 23,505 11,898 13,612 8,457 9,893 6,352 7,471 180 213 106 94 1,819 2,115 822 925 997 1,190

28,206 16,359 11,847 9,026 213 -147 2,754 1,212 1,542

155

200

240

308

508 2,545 1,630 4,683 3,232 1,335 1,897 6,580

609 3,095 1,838 5,542 3,795 1,515 2,280 7,822

706 3,652 2,190 6,548 4,163 1,728 2,435 8,983

846 3,526 1,625 5,997 6,163 1,941 4,222 10,219

125 1,042 1,145 2,312 1,000

125 1,325 1,432 2,882 875

125 1,440 1,653 3,218 750 0

125 3,526 1,974 5,625 625 -2,280

Common Stock Retained Earnings Total SH ' Equity Total Liabilities

1,135 2,133 3,268 6,580

1,135 2,930 4,065 7,822

1,135 3,880 5,015 8,983

1,135 5,114 6,249 10,219

1997 Function of 33,847 19,631 .58 * sales 14,216 10,831 453 -161 3,093 1,361 1,732

1993

32%

44%

346

1,015 4,231 3,148 8,394 6,563 2,394 4,169 12,563

125 4,231 2,369 6,725 500 -2,296

3% 0.125 9.30%

6.10% 7%

1994

1995

1,135 6,499 7,634 12,563

Assumed

1996

1997