Cash Flw, 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
25,640	22,500
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 4,870 6,080 8,320 9,060 10,060

910

240

30

140

350 60 60

0

570

3,570

7,390

420 830

630 (270) 200

(140)

(90)

560 470 420 3,640

560 470 420 3,640 4,270

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

570 5,730 3,570

(370) (2,420) (2,710) (2,450)

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	(190)		(370)		(2,420)		(2,710)		(2,450)
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
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)