This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1 Front PagePage 2 Stocks & BondsPage 3 Financial SummaryPage 4 Production Analysis
Balance SheetDEFINITIONS: Common Size: The common size columnsimply represents each item as a percentage of totalassets for that year. Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lag between deliveryand payment of your products. Inventories: The currentvalue of your inventory across all products. A zero indicatesyour company stocked out. Unmet demand would, ofcourse, fall to your competitors. Plant & Equipment: Thecurrent value of your plant. Accum Deprec: The totalaccumulated depreciation from your plant. Accts Payable:What the company currently owes suppliers for materialsand services. Current Debt: The debt the company isobligated to pay during the next year of operations. Itincludes emergency loans used to keep your companysolvent should you run out of cash during the year. LongTerm Debt: The company's long term debt is in the form ofbonds, and this represents the total value of your bonds.Common Stock: The amount of capital invested byshareholders in the company. Retained Earnings: Theprofits that the company chose to keep instead of paying toshareholders as dividends.
Total Liabilities $52,719 41.5% $52,442 Common Stock $14,081 11.1% $12,081Retained Earnings $60,270 47.4% $59,320
Total Equity $74,351 58.5% $71,401
Total Liab. & O. Equity $127,071 100.0% $123,844
Cash Flow StatementThe Cash Flow Statement examines what happened in the Cash Account during theyear. Cash injections appear as positive numbers and cash withdrawals as negativenumbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans.When negative cash flows exceed positives, you are forced to seek emergency funding.For example, if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a huge negative cash flow.Too much unexpected inventory could outstrip your inflows, exhaust your starting cashand force you to beg for money to keep your company afloat.
Net cash from operations $28,841 $16,358Cash Flows from Investing Activities: Plant Improvements ($34,433) ($3,520)Cash Flows from Financing Activities: Dividends Paid $0 ($13,331)Sales of Common Stock $2,000 $0Purchase of Common Stock $0 ($1,935)Cash from long term debt $14,000 $0Retirement of long term debt $0 ($7,533)
Change in current debt (net)($8,717) $9,992
Net cash from financing activities $7,283 ($12,807)Net change in cash position $1,691 $31Closing cash position $34,132 $32,442
Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-yeardepreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administrationoverhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales forcebudget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The feesinclude money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting feesyour instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidateinventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actuallymade money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest:Interest expense based on last year's current debt, including short term debt, long term notes that have become due,and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35%tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes,and profit sharing.
Other $8,785 7.4%EBIT $7,039 6.0%Short Term Interest $665 0.6%LongTerm Interest $4,883 4.1%Taxes $522 0.4%Profit Sharing $19 0.0%Net Profit $950 0.8%
Balance SheetDEFINITIONS: Common Size: The common size columnsimply represents each item as a percentage of totalassets for that year. Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lag between deliveryand payment of your products. Inventories: The currentvalue of your inventory across all products. A zero indicatesyour company stocked out. Unmet demand would, ofcourse, fall to your competitors. Plant & Equipment: Thecurrent value of your plant. Accum Deprec: The totalaccumulated depreciation from your plant. Accts Payable:What the company currently owes suppliers for materialsand services. Current Debt: The debt the company isobligated to pay during the next year of operations. Itincludes emergency loans used to keep your companysolvent should you run out of cash during the year. LongTerm Debt: The company's long term debt is in the form ofbonds, and this represents the total value of your bonds.Common Stock: The amount of capital invested byshareholders in the company. Retained Earnings: Theprofits that the company chose to keep instead of paying toshareholders as dividends.
Total Liabilities $87,450 57.9% $72,689 Common Stock $18,743 12.4% $14,378Retained Earnings $44,890 29.7% $38,813
Total Equity $63,633 42.1% $53,191
Total Liab. & O. Equity $151,084 100.0% $125,879
Cash Flow StatementThe Cash Flow Statement examines what happened in the Cash Account during theyear. Cash injections appear as positive numbers and cash withdrawals as negativenumbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans.When negative cash flows exceed positives, you are forced to seek emergency funding.For example, if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a huge negative cash flow.Too much unexpected inventory could outstrip your inflows, exhaust your starting cashand force you to beg for money to keep your company afloat.
Net cash from operations $15,907 $19,262Cash Flows from Investing Activities: Plant Improvements ($40,900) ($26,642)Cash Flows from Financing Activities: Dividends Paid $0 ($5,966)Sales of Common Stock $4,365 $0Purchase of Common Stock $0 $0Cash from long term debt $17,789 $15,610Retirement of long term debt $0 ($5,880)
Change in current debt (net)($3,812) $9,642
Net cash from financing activities $18,341 $13,406Net change in cash position ($6,652) $6,026Closing cash position $24,986 $31,638
Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-yeardepreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administrationoverhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales forcebudget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The feesinclude money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting feesyour instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidateinventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actuallymade money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest:Interest expense based on last year's current debt, including short term debt, long term notes that have become due,and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35%tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes,and profit sharing.
Other $1,108 0.9%EBIT $19,302 15.3%Short Term Interest $2,432 1.9%LongTerm Interest $7,329 5.8%Taxes $3,339 2.6%Profit Sharing $124 0.1%Net Profit $6,077 4.8%
Balance SheetDEFINITIONS: Common Size: The common size columnsimply represents each item as a percentage of totalassets for that year. Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lag between deliveryand payment of your products. Inventories: The currentvalue of your inventory across all products. A zero indicatesyour company stocked out. Unmet demand would, ofcourse, fall to your competitors. Plant & Equipment: Thecurrent value of your plant. Accum Deprec: The totalaccumulated depreciation from your plant. Accts Payable:What the company currently owes suppliers for materialsand services. Current Debt: The debt the company isobligated to pay during the next year of operations. Itincludes emergency loans used to keep your companysolvent should you run out of cash during the year. LongTerm Debt: The company's long term debt is in the form ofbonds, and this represents the total value of your bonds.Common Stock: The amount of capital invested byshareholders in the company. Retained Earnings: Theprofits that the company chose to keep instead of paying toshareholders as dividends.
Total Liabilities $42,748 43.3% $44,518 Common Stock $8,799 8.9% $9,097Retained Earnings $47,132 47.8% $40,038
Total Equity $55,931 56.7% $49,135
Total Liab. & O. Equity $98,680 100.0% $93,653
Cash Flow StatementThe Cash Flow Statement examines what happened in the Cash Account during theyear. Cash injections appear as positive numbers and cash withdrawals as negativenumbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans.When negative cash flows exceed positives, you are forced to seek emergency funding.For example, if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a huge negative cash flow.Too much unexpected inventory could outstrip your inflows, exhaust your starting cashand force you to beg for money to keep your company afloat.
Net cash from operations $29,026 $13,840Cash Flows from Investing Activities: Plant Improvements ($9,580) ($6,500)Cash Flows from Financing Activities: Dividends Paid ($6,494) ($4,506)Sales of Common Stock $0 $0Purchase of Common Stock ($1,609) ($1,840)Cash from long term debt $1,378 $5,663Retirement of long term debt $0 ($6,317)
Change in current debt (net)($4,473) $7,930
Net cash from financing activities ($11,198) $931Net change in cash position $8,248 $8,271Closing cash position $25,872 $17,624
Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-yeardepreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administrationoverhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales forcebudget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The feesinclude money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting feesyour instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidateinventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actuallymade money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest:Interest expense based on last year's current debt, including short term debt, long term notes that have become due,and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35%tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes,and profit sharing.
Other $6,343 4.0%EBIT $27,397 17.1%Short Term Interest $1,411 0.9%LongTerm Interest $2,597 1.6%Taxes $8,186 5.1%Profit Sharing $304 0.2%Net Profit $14,899 9.3%
Balance SheetDEFINITIONS: Common Size: The common size columnsimply represents each item as a percentage of totalassets for that year. Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lag between deliveryand payment of your products. Inventories: The currentvalue of your inventory across all products. A zero indicatesyour company stocked out. Unmet demand would, ofcourse, fall to your competitors. Plant & Equipment: Thecurrent value of your plant. Accum Deprec: The totalaccumulated depreciation from your plant. Accts Payable:What the company currently owes suppliers for materialsand services. Current Debt: The debt the company isobligated to pay during the next year of operations. Itincludes emergency loans used to keep your companysolvent should you run out of cash during the year. LongTerm Debt: The company's long term debt is in the form ofbonds, and this represents the total value of your bonds.Common Stock: The amount of capital invested byshareholders in the company. Retained Earnings: Theprofits that the company chose to keep instead of paying toshareholders as dividends.
Total Liabilities $102,586 61.3% $90,396 Common Stock $27,509 16.4% $24,669Retained Earnings $37,139 22.2% $30,131
Total Equity $64,648 38.7% $54,800
Total Liab. & O. Equity $167,234 100.0% $145,197
Cash Flow StatementThe Cash Flow Statement examines what happened in the Cash Account during theyear. Cash injections appear as positive numbers and cash withdrawals as negativenumbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans.When negative cash flows exceed positives, you are forced to seek emergency funding.For example, if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a huge negative cash flow.Too much unexpected inventory could outstrip your inflows, exhaust your starting cashand force you to beg for money to keep your company afloat.
Net cash from operations $20,975 $15,964Cash Flows from Investing Activities: Plant Improvements ($34,660) ($15,800)Cash Flows from Financing Activities: Dividends Paid $0 ($12,582)Sales of Common Stock $2,840 $0Purchase of Common Stock $0 $0Cash from long term debt $14,263 $9,570Retirement of long term debt $0 ($7,533)
Change in current debt (net)($4,005) $7,083
Net cash from financing activities $13,098 ($3,463)Net change in cash position ($587) ($3,299)Closing cash position $32,136 $32,723
Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-yeardepreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administrationoverhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales forcebudget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The feesinclude money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting feesyour instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidateinventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actuallymade money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest:Interest expense based on last year's current debt, including short term debt, long term notes that have become due,and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35%tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes,and profit sharing.
Other $855 0.5%EBIT $22,476 13.7%Short Term Interest $2,907 1.8%LongTerm Interest $8,567 5.2%Taxes $3,851 2.3%Profit Sharing $143 0.1%Net Profit $7,008 4.3%