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Case studies 1 : Cariboo

exhibit 1
2001
Sales
Cost of Goods Sold
Gross Profit
Selling and Administration
Depreciation
Income Before Interest and Taxes
Interest Expense
Income Before Taxes
Income Taxes
Net Income

22,456
13,200
9,256
1,450
1,425
6,381
1,101
5,280
1,848
3,432

2000
Current Assets
Cash
Accounts Receivable
Inventories
Prepayments
Total current Assets
PP & E
Less: A/D
Net PP & E
Total Assets
Current Liabilities
Account Payable
Line-of-credit
Current Portion of LT debt
Total Current Liabilities
Long-term Debt
Shareholders' Equity
Common Shares
Retained Earnings
Total Liabilities and Equities

2002
35,000
22,750
12,250
2,972
3,130
6,148
5,058
1,090
382
709

2001

2003
43,566
28,563
15,003
4,911
3,607
6,485
5,841
644
225
419

2002

142
2,490
3,362
57
6,051
18,921
4,288
14,633
20,684

904
4,300
3,952
469
9,625
23,055
5,713
17,342
26,967

583
6,786
3,500
329
11,198
77,640
8,843
68,797
79,995

1,594
1,676
1,104
4,374
6,738

1,594
1,351
1,789
4,734
9,716

12,341
7,007
7,018
26,366
41,921

5,707
3,865
20,684

5,707
6,810
26,967

5,707
6,001
79,995

1 Vertical Analysis
2001
Sales

2002

Percentage
Amount
Amount
22,456
100.00%
35,000

Cost of Goods Sold


Gross Profit
Selling and Administration
Depreciation
Income Before Interest and Taxes
Interest Expense
Income Before Taxes
Income Taxes
Net Income

13,200
9,256
1,450
1,425
6,381
1,101
5,280
1,848
3,432

Amount
Current Assets
Cash
Accounts Receivable
Inventories
Prepayments
Total current Assets
PP & E
Less: A/D
Net PP & E
Total Assets
Current Liabilities
Account Payable
Line-of-credit
Current Portion of LT debt
Total Current Liabilities
Long-term Debt
Shareholders' Equity
Common Shares
Retained Earnings
Total Liabilities and Equities

58.78%
41.22%
6.46%
6.35%
28.42%
4.90%
23.51%
8.23%
15.28%

2000
Percentage

22,750
12,250
2,972
3,130
6,148
5,058
1,090
382
709

2001
Amount

142
2,490
3,362
57
6,051
18,921
4,288
14,633
20,684

0.69%
12.04%
16.25%
0.28%
29.25%
91.48%
20.73%
70.75%
100.00%

904
4,300
3,952
469
9,625
23,055
5,713
17,342
26,967

1,594
1,676
1,104
4,374
6,738

7.71%
8.10%
5.34%
21.15%
32.58%

1,594
1,351
1,789
4,734
9,716

5,707
3,865
20,684

27.59%
18.69%
100.00%

5,707
6,810
26,967

Horinzontal Analysis

Sales
Cost of Goods Sold
Gross Profit
Selling and Administration
Depreciation
Income Before Interest and Taxes
Interest Expense

Y 2002
Y 2003
Increase (decrease)
Increase (decrease)
Amount
Percentage
Amount
(12,544)
-55.86%
8,566
(9,550)
-72.35%
5,813
(2,994)
-32.35%
2,753
(1,522)
-104.97%
1,939
(1,705)
-119.65%
477
233
3.65%
337
(3,957)
-359.40%
783

Income Before Taxes


Income Taxes
Net Income

4,190
1,466
2,723

79.36%
79.33%
79.34%

Y 2001
Increase (decrease)
Amount
Percentage
Current Assets
Cash
Accounts Receivable
Inventories
Prepayments
Total current Assets
PP & E
Less: A/D
Net PP & E
Total Assets
Current Liabilities
Account Payable
Line-of-credit
Current Portion of LT debt
Total Current Liabilities
Long-term Debt
Shareholders' Equity
Common Shares
Retained Earnings
Total Liabilities and Equities

(446)
(157)
(290)

Y 2002
Increase (decrease)
Amount

762
1,810
590
412
3,574
4,134
1,425
2,709
6,283

536.62%
72.69%
17.55%
722.81%
59.06%
21.85%
33.23%
18.51%
30.38%

(321)
2,486
(452)
(140)
1,573
54,585
3,130
51,455
53,028

0
(325)
685
360
2,978

0.00%
-19.39%
62.05%
8.23%
44.20%

10,747
5,656
5,229
21,632
32,205

0
2,945
6,283

0.00%
76.20%
30.38%

0
(809)
53,028

2003
159
14,216
3,650
18,025
91,000
12,450
78,550
96,575
18,880
67,041
85,921

9,620
1,034
96,575

2002
2003
Percentage
Percentage
Amount
100.00%
43,566
100.00%

65.00%
35.00%
8.49%
8.94%
17.57%
14.45%
3.11%
1.09%
2.03%

2001
Percentage

28,563
15,003
4,911
3,607
6,485
5,841
644
225
419

Amount

65.56%
34.44%
11.27%
8.28%
14.89%
13.41%
1.48%
0.52%
0.96%

2002
Percentage

Amount

2003
Percentage

3.35%
15.95%
14.65%
1.74%
35.69%
85.49%
21.19%
64.31%
100.00%

583
6,786
3,500
329
11,198
77,640
8,843
68,797
79,995

0.73%
8.48%
4.38%
0.41%
14.00%
97.06%
11.05%
86.00%
100.00%

159
14,216
3,650

0.16%
14.72%
3.78%

18,025
91,000
12,450
78,550
96,575

18.66%
94.23%
12.89%
81.34%
100.00%

5.91%
5.01%
6.63%
17.55%
36.03%

12,341
7,007
7,018
26,366
41,921

15.43%
8.76%
8.77%
32.96%
52.40%

18,880

19.55%

67,041
85,921

69.42%
88.97%

21.16%
25.25%
100.00%

5,707
6,001
79,995

7.13%
7.50%
100.00%

9,620
1,034
96,575

9.96%
1.07%
100.00%

Y 2003
rease (decrease)
Percentage
24.47%
25.55%
22.47%
65.24%
15.24%
5.48%
15.48%

-40.92%
-41.10%
-40.90%

Y 2002
rease (decrease)
Percentage

Y 2003
Increase (decrease)
Amount
Percentage

-35.51%
57.81%
-11.44%
-29.85%
16.34%
236.76%
54.79%
296.71%
196.64%

(424)
7,430
150
(329)
6,827
13,360
3,607
9,753
16,580

-72.73%
109.49%
4.29%
-100.00%
60.97%
17.21%
40.79%
14.18%
20.73%

674.22%
418.65%
292.29%
456.95%
331.46%

6,539
(7,007)
60,023
59,555
(41,921)

52.99%
-100.00%
855.27%
225.88%
-100.00%

0.00%
-11.88%
196.64%

3,913
(4,967)
16,580

68.56%
-82.77%
20.73%

Liquidity
current Ratio = Current Asset
Current Liabilities
Y 2000
6,051
4,374
1.38340192

Y2001
9,625
4,734
2.033164343

Quick Ratio= Current Assets-Inventories- Prepaid Expenses


Current Liabilities
Y2000
2,632
4,374
0.60173754

Y2001
5,204
4,734
1.099281791

Y2002
7,369
26,366
0.279488735

Cash Ratio= Cash+ marketable securities


Current Liabilities
Y2000
142
4,374
0.032464563
NWC=

Y2001
904
4,734
0.19095902

Y2002
583
26,366
0.022111811

Current Assets-current Liabilities


Y2000
1,677

Y2001
4,891

Y2002
-15,168

Y2001
0.181369822

Y2002
-0.189611851

NWC to Total Asset= NWC


Total assets
Y2000
0.081077161

Y2002
11,198
26,366
0.424713646

Y2003
14,375
85,921
0.16730485

Y2003
159
85,921
0.001850537

Y2003
-67,896

Y2003
-0.703039089

Y2003
18,025
85,921
0.209785733

Asset Management
A/R Turnover= Net Credit Sales
Ave Acc Receivable
Y2001
6.61443

Y2002
6.31427

A/R Turnover in days=

Y2003
4.14875

365
A/R Turnover

Y2000
55.18235661
Inventory Turnover=

Y2001
57.80557143

Y2002
87.97835468

Cost of Good Sold


Ave Inventories

Y2001
3.6095160
Inventory Turnover in Days=

Y2001
101.1215909

Y2002
6.1057434

Y2003
7.9896503

365
Inventory Turnover
Y2002
59.77978022

Y2003
45.68410181

Operating Cycle= inventory turnover in days+ A/R Turnover in Days


Y2001
156.3039475

Y2002
117.5853516

Y2003
133.6624565

Case studies 1 : Cariboo


exhibit 1
Ratio Table

Horizontal Analysis
1
Sales
Cost of Goods Sold
Gross Profit
Selling and Administration
Depreciation
Income Before Interest and Taxes
Interest Expense
Income Before Taxes
Income Taxes
Net Income

2001
22,456
13,200
9,256
1,450
1,425
6,381
1,101
5,280
1,848
3,432

2000
Current Assets
Cash
Accounts Receivable
Inventories
Prepayments

142
2,490
3,362
57

2002
35,000
22,750
12,250
2,972
3,130
6,148
5,058
1,090
382
709

2001
904
4,300
3,952
469

horizontal 2001-2002
Increase (decrease)
Amount
(12,544)
(9,550)
(2,994)
(1,522)
(1,705)
233
(3,957)
4,190
1,466
2,723
horizontal 2000-2001
Increase (decrease)
Amount
762
1,810
590
412

Total current Assets


PP & E
Less: A/D
Net PP & E
Total Assets
Current Liabilities
Account Payable
Line-of-credit
Current Portion of LT debt
Total Current Liabilities
Long-term Debt
Shareholders' Equity
Common Shares
Retained Earnings
Total Liabilities and Equities

6,051
18,921
4,288
14,633
20,684

9,625
23,055
5,713
17,342
26,967

3,574
4,134
1,425
2,709
6,283

1,594
1,676
1,104
4,374
6,738

1,594
1,351
1,789
4,734
9,716

0
(325)
685
360
2,978

5,707
3,865
20,684

5,707
6,810
26,967

0
2,945
6,283

horizontal 2001-2002
Increase (decrease)
Amount
Percentage
(12,544)
-55.86%
(9,550)
-72.35%
(2,994)
-32.35%
(1,522)
-104.97%
(1,705)
-119.65%
233
3.65%
(3,957)
-359.40%
4,190
79.36%
1,466
79.33%
2,723
79.34%

horizontal 2001-2002
ease (decrease)
Percentage
-55.86%
-72.35%
-32.35%
-104.97%
-119.65%
3.65%
-359.40%
79.36%
79.33%
79.34%

horizontal 2000-2001
ease (decrease)
Percentage
536.62%
72.69%
17.55%
722.81%

2003
43,566
28,563
15,003
4,911
3,607
6,485
5,841
644
225
419

2002
583
6,786
3,500
329

horizontal 2002-2003
Increase (decrease)
Amount
Percentage
8,566
24.47%
5,813
25.55%
2,753
22.47%
1,939
65.24%
477
15.24%
337
5.48%
783
15.48%
(446)
-40.92%
(157)
-41.10%
(290)
-40.90%
horizontal 2001-2002
Increase (decrease)
Amount
Percentage
(321)
2,486
(452)
(140)

-35.51%
57.81%
-11.44%
-29.85%

2003
159
14,216
3,650
0

horizontal 2002-2003
Increase (decrease)
Amount
Percentage
(424)
7,430
150
(329)

-72.73%
109.49%
4.29%
-100.00%

59.06%
21.85%
33.23%
18.51%
30.38%

11,198
77,640
8,843
68,797
79,995

1,573
54,585
3,130
51,455
53,028

16.34%
236.76%
54.79%
296.71%
196.64%

18,025
91,000
12,450
78,550
96,575

6,827
13,360
3,607
9,753
16,580

60.97%
17.21%
40.79%
14.18%
20.73%

0.00%
-19.39%
62.05%
8.23%
44.20%

12,341
7,007
7,018
26,366
41,921

10,747
5,656
5,229
21,632
32,205

674.22%
418.65%
292.29%
456.95%
331.46%

18,880
0
67,041
85,921
0

6,539
(7,007)
60,023
59,555
(41,921)

52.99%
-100.00%
855.27%
225.88%
-100.00%

0.00%
76.20%
30.38%

5,707
6,001
79,995

0
(809)
53,028

0.00%
-11.88%
196.64%

9,620
1,034
96,575

3,913
(4,967)
16,580

68.56%
-82.77%
20.73%