Case_26 - Introduction This spreadsheet supports STUDENT...

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Introduction Page 1 Please note: Copyright © 2005 by the Trustees of the University of Virginia Darden School Foundation. This spreadsheet supports STUDENT analysis of the case, "Gainesboro Machine Tools Corp." (Case 26). 1) This is a working model. Assumptions / Inputs presented can be changed to vary the results. 2) As long as default spreadsheet calculation is "automatic" the impact of changing assumptions will be computed in real time. If calculation is set as "manual" you should press the F9 function key to recalculate results. To set numerical calculation settings to automatic look under tools, options, calculations menu.
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Exhibit 1 GAINESBORO MACHINE TOOLS CORP. Consolidated Income Statements (in thousands of dollars, except per-share data) For the Years Ended December 31, Projected 2002 2003 2004 2005 Net sales $858,263 $815,979 $756,638 $870,000 Cost of sales 540,747 501,458 498,879 549,750 Gross profit 317,516 314,522 257,759 320,250 77,678 70,545 75,417 77,250 229,971 223,634 231,008 211,500 Restructuring costs 65,448 0 89,411 0 Operating profit (loss) (55,581) 20,343 (138,077) 31,500 Other income (expense) (4,500) 1,065 (3,458) (4,200) Income (loss) before taxes (60,081) 21,408 (141,534) 27,300 Income taxes (benefit) 1,241 8,415 (750) 9,282 Net income (loss) ($61,322) $12,993 ($140,784) $18,018 Earnings (loss) per share ($3.25) $0.69 ($7.57) $0.98 Dividends per share $0.77 $0.25 $0.25 $0.39
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Exhibit 2 GAINESBORO MACHINE TOOLS CORP. Consolidated Balance Sheets (in thousands of dollars) Projected 2003 2004 2005 $13,917 $22,230 $25,665 Accounts receivable 208,541 187,235 217,510 Inventories 230,342 203,888 217,221 Prepaid expenses 14,259 13,016 15,011 Other 22,184 20,714 21,000 Total current assets 489,242 447,082 496,407 327,603 358,841 410,988 Less depreciation 167,414 183,486 205,530 160,190 175,355 205,458 Intangible assets 9,429 2,099 1,515 Other assets 15,723 17,688 17,969 Total assets $674,583 $642,223 $721,350 Bank loans $34,196 $71,345 $74,981 Accounts payable 36,449 34,239 37,527 Current portion of long-term debt 300 150 1,515 Accruals and other 129,374 161,633 183,014 Total current liabilities 200,318 267,367 297,037 Deferred taxes 16,986 13,769 16,526 Long-term debt 9,000
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Case_26 - Introduction This spreadsheet supports STUDENT...

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