Financial Analysis Pro Forma Butler Analysis

Financial Analysis Pro Forma Butler Analysis - 68 Accrued...

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Financial Ratios: Pro Forma 1991 BUTLER LUMBER COMPANY 1991 Liquidity & Indetedness Current Ratio 1.29 Liquidity Ratio or Acid Test 0.614 Debt Ratio 69.57% Debt to Equity Ratio 2.3 Ratios Appraising Funds Management - Turnover Relationship Average Daily Sales 10.00 Accounts Receivable 45.40 Inventory Turnover 4.73 Profitability Ratios Return on Assets 4.59% Profit Margin 1.56% Gross Margin 28.00% Asset Turnover 2.953 Profit Percentage on Assets 4.59% Interest Expense 2.70 APPENDIX B: Sales Projection; Pro Forma 1991 Operating Statement: Pro Forma 1991 Balance Sheets: Pro Forma 1991 BUTLER LUMBER COMPANY 1991 1991 Net Sales 3600 Cash 40 Cost of Goods Sold Account Receivable, net 454 Beginning Inventory 418 Inventory 548 Purchases 2718 Current Assets 1042 3136 Property, net 177 Ending Inventory 544 Total Assets 1219 Total Cost of Goods Sold 2592 Notes Payable, bank 247 Gross Profit 1008 Notes Payable, Mr. Stark 0 Operating Expense 900 Notes Payable, trade 157 Interest Expense 40 Accounts Payable 343 Net Income Before Taxes
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Unformatted text preview: 68 Accrued Expense 51 Provision for Income Taxes 12 Long Term Debt, current portion 7 Net Income 56 Current Liabilities 805 Long Term Debt 43 Total Liabilities 848 Net Worth 371 Total Liabilities & Net Worth 1219 BUTLER LUMBER COMPANY ASSUMPTIONS Purchases have averaged approx. 75.5% over the past 3 years. Total cost of goods sold has averaged 72% of net sale over the past 3 years. Interest was raised in proportion to revenue. Accounts Receivable has risen on average .7% each year. Inventory was calculated using the inventory turnover rate averaged over 3 years. Various figures were then extended because no apparent changes were needed based on readings and statement analysis. As a corporation, Butler was taxed at the rate of 15% on its first $50,000 of income, 25% on the next . 25,000 of income, and 34% on all additional income . above $75,000...
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This note was uploaded on 05/11/2008 for the course AEM 2220 taught by Professor Perez,p.d. during the Spring '06 term at Cornell University (Engineering School).

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Financial Analysis Pro Forma Butler Analysis - 68 Accrued...

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