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ProFormaExample

ProFormaExample - IncomeStatement 2003 Netsales $2,546...

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Income Statement Page 1 Shady Business Corporation’s Income Statement All data in thousads of dollars. 2003 2004 2005 Net sales $2,546  $3,020  $4,041  Cost of goods sold  Beginning inventory 275  359  489   Purchases 1,921  2,285  3,077  $2,196  $2,644  $3,566  Ending inventory 359  489  627  Total cost of goods sold $1,837  $2,155  $2,939  GROSS PROFIT $709  $865  $1,102  Operating expenses 638  773  987  Interest expenses 20  27  35  Net income before taxes $51  $65  $80  Provision for income taxes 11  14  Net income $42  $55  $66  Dividends per share: $0.035  $0.045  $0.055  Shares Outstanding (in thousands): 1150 1150 1150 Total dividends: $40.25 $51.75 $63.25
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Balance Sheet Page 2 Shady Business Corporation’s Balance Sheet. All data in thousads of dollars. 2003 2004 2005 Cash 87 72 62 Accounts receivable 257 333 476 Inventory 359 489 627  Current assets 702 894 1,164 Net Property, plant, and equipment 628 705 997  Total assets 1,330.39 1,599.00 2,161.00 Notes payable 255 354 566 Accounts payable 240 288 384 Accrued expenses 36 45 59 Long-term debt, current portion 11 11 11  Current liabilities 541 698 1,019 Long-term debt 384 493 731  Total liabilities 925 1,191 1,750 Owners’ equity 405 408 411 TL+OE 1,330.39 1,599.00 2,161.00 Shares Outstanding (in thousands): 1150 1150 1150
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Some Shady Facts All data in thousads of dollars. 2004 2005 2003 2004 2005 Cash From Operating Activities NPM 0.02 0.02 0.02 NI 54.68 66.37 TAT 1.91 1.89 1.87 - Change in A/R -76.5 -142.5 EM 3.28 3.92 5.26 - Change in Inventories -130.5 -138 Sustainable growth rate: 0 0.01 0.01 + Change in A/P, Trade Payabe, Accr. Exp. 157 321 Sales growth: 1.31 0.19 0.34 Total 4.21 106.57 DR: 0.7 0.74 0.81 A/R Coll. Per. 36.78 40.25 42.95 Cash From Investing Activities Inv. Turn. 5.12 4.41 4.69 Change in L-T Assets -76.61 -292 Inv. Turn. For avge Inventory 5.8 5.08 5.27 Total -76.61 -292 Days A/P outstand 45.6 46 45.55 CR: 1.3 1.28 1.14 Cash From Financing Activities QR: 0.63 0.58 0.53 Change is S-T Debt 100 211 + Change in L-T Debt 109 238 Total 209 449 Total Change in Cash 136 264
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Unrestrained Pro-Forma for Shady Business Corporation All data in thousads of dollars. 2003 2004 2005 2006 Sales Growth Rate: 0.19 0.34 0.49 GPM: 0.28 0.29 0.27 0.28 Inv. Turn. For avge Inventory 5.80 5.08 5.27 5.25 Oper. Exp./Sales 0.25 0.26 0.24 0.25 Last Year's CL 541.39 697.91 Last year's L-T Liabilities 384.00 493.16 Interest on CL 0.01 0.01 Interest in L-T Liab. 0.05 0.05 A/R Coll. Per. 36.78 40.25 42.95 45.64 Days A/P Outstanding 45.60 46.00 45.55 45.72 Accr. Exp./Sales 0.01 0.01 0.01 0.01 Cash/Sales 0.03 0.02 0.02 0.02 <==== any higher number would increase funds requirements, but low numbers may result in liquidity problems TAT 1.91 1.89 1.87 1.85 Notes payable/Sales 0.10 0.12 0.14 0.10 Dividends per share: 0.04 0.05 0.06 0.07
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