Tire City

Projected Statements

Sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Depreciation
Net interest expenses
Pre-tax income
Income Tax
Net Income
Dividends
Dividend payout ratio
Balance Sheet
Cash
Accounts receivable
Inventories
Total current assets
Gross plant & equipment
Accumulated depreciation
Net plant and equipment
Total assets

Common-size statement
1993
16,230
9,430
6,800
5,195
160
119
1,326
546
780
155

1994
20,355
11,898
8,457
6,352
180
106
1,819
822
997
200

1993

1994

508
2,545
1,630
4,683
3,232
1,335
1,897
6,580

609
3,095
1,838
5,542
3,795
1,515
2,280
7,822

1995
23,505
13,612
9,893
7,471
213
94
2,115
925
1190
240

1993
100
58.1
41.9
32.0

1994
100
58.5
41.5
31.2

1995
100
57.9
42.1
31.8

Average
Used
100.0 growth 20%
58.2
58.2%
41.8
31.7
31.7%

8.2
41.2
4.8

8.9
45.2
4.9

9.0
43.7
5.1

8.7
43.4
4.9

43.4%

19.87

20.06

20.17

20.0

20.0%

10.0%

1995 Sales to current asset ratios

706
3,652
2,190
6,548
4,163
1,728
2,435
8,983

3.1
15.7
10.0
28.9

3.0
15.2
9.0
27.2

3.0
15.5
9.3
27.9

3.0
15.5
9.5
28.0

0.5
6.1
7.0
13.7

0.6
6.35
7.0
14.0

3.0%
15.5%
9.5%

1996
28,206
16,416
11,790
8,941
213
113
2,523
1,095
1,428
286

1997
33,847
19,699
14,148
10,730
333
168
2,917
1,266
1,651
330

1996

1997

846
4,372
1,625
6,843.11
6,163
1,941
4,222
11,065.11

1,015.42
5,246.32
3,147.79
9,409.52
6,563.00
2,274.00
4,289.00
13,698.52

125
1,805
1,974
4,283
378.09
625
1,135
5,022
6,157
11,065.11

125
2,166
2,369
4,661
1,059.7
500
1,135
6,343
7,478
13,698.52

Sales to current liabilities

Liabilities
Current maturities of loang-term debt
Accounts payable
Accrued expenses
Total current liabilities
New debt (plug figure)
Long-term debt
Common stock
Retained earnings
Total shareholders' equity
Total liabilities

125
1,042
1,145
2,312

125
1,325
1,432
2,882

125
1,440
1,653
3,218

1,000
1,135
2,133
3,268
6,580

875
1,135
2,930
4,065
7,822

750
1,135
3,880
5,015
8,983

0.8
6.4
7.1
14.2

Page 1 of 11

0.6
6.5
7.0
14.2

6.4%
7.0%

Financial Performance
1993
1994
Liquidity:
Current ratio
Quick ratio

1995

1996

1997

2.03
1.32

1.92
1.29

2.03
1.35

1.60
1.22

2.02
1.34

Margins:
Gross profit margin
Net profit margin

58.1%
5.5%

58.5%
5.4%

57.9%
5.5%

41.8%
5.5%

41.8%
5.4%

Return ratios:
ROE=PAT/Equity
ROA=(PAT+Int.)/Assets

23.9%
13.7%

24.5%
14.1%

23.7%
14.3%

23.2%
13.9%

22.1%
13.3%

Leverage:
Debt-equity
Debt Ratio
Interest coverage (1)
Interest coverage (2)

34.4%
25.6%
13.5
12.1

24.6%
19.7%
19.9
18.2

17.4%
14.9%
25.8
23.5

18.3%
15.5%
25.3
23.4

22.5%
18.4%
20.3
18.3

2.5
63.1
57.2

2.6
56.4
55.5
39.9

2.6
58.7
56.7
37.6

2.5
36.1
56.6
41.6

2.5
58.3
56.6
37.3

25.4%

15.5%

Asset Utilization:
Total assets turnover=Sales/Total assets
Days' inventory
Days' receivable
Day's payable
Interest coverage (1)
Interest coverage (2)
Sales growth
Annual purchases are
=COGS+End invent.-open

=(EBIT+Depn)/Interest
=EBIT/Interest

TIRE CITY - 2011-12

Particulars
INCOME STATEMENT
Net Sales
Cost of sales
Gross Profit
SGA
Depreciation
Net Interest Exp.
Pre-tax income
Income Tax
Net Income
Dividends
BALANCE SHEET
ASSETS
Cash
Accounts Receivable
Inventories
Total Current Assets
Gross P & E
Accumulated Depreciation
Net P & E
Total Assets
LIABILITIES
Cur Mat. of LT Debt
Accounts Payable
Accrued Expenses
Total Current Liab.
Long Term Debt-Old
Long Term Debt New
Common Stock
Retained Earnings
Total SH ' Equity
Total Liabilities

1993
16,230
9,430
6,800
5,195
160
119
1,326
546
780

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para

11,898 13,612 16,359 19,631 Sales
8,457 9,893 11,847 14,216
6,352 7,471 9,026 10,831 Sales
Given pg. 2 para 1 96= same; 97
180
213
213
333 ++120
106
94
131
192 Avg Loan Bal.
1,819 2,115 2,477 2,860
822
925 1,090 1,258 Pre-tax income
997 1,190 1,387 1,601

155

200

240

277

508
2,545
1,630
4,683
3,232
1,335
1,897
6,580

609
3,095
1,838
5,542
3,795
1,515
2,280
7,822

706
846 1,015
3,652 4,372 5,246
2,190 1,625 3,148
6,548 6,843 9,409
4,163 6,163 6,563
1,728 1,941 2,274
2,435 4,222 4,289
8,983 11,065 13,698

3% of sales, pg. 2 3rd para

Sales
1996 given, 1997: Sales*9.3%

125
1,042
1,145
2,312
1,000

125
1,325
1,432
2,882
875

Accounting
Sales
Sales * 7%

1,135
2,133
3,268
6,580

1,135
2,930
4,065
7,822

125
125
125
1,440 1,721 2,065
1,653 1,974 2,369
3,218 3,820 4,559
750
625
500
0
496 1,234
1,135 1,135 1,135
3,880 4,990 6,271
5,015 6,125 7,406
8,983 11,065 13,698

1993

1994

1995 Assumed

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

5.0%

0.9%
0.9%
10.03% 16.10%
8.2%
8.9%
9.0%
41.2% 45.2% 43.7%
4.8%
4.9%
5.1%

1996

1997

20.0% 20.0%
58.0% 58.0%

32.0%
Same as
1992
10.0% 10.0%
8.8%
44.0% 44.0%
4.9%

32.0%
213+1
20
10.0%
8.4%
44.0%
4.7%

320 page 2, para 3

Given, pg2 para 1

Given, pg2 para 1

Given page 1
Bal. Fig
Same
=op+pat-div

15.7%
10.0%
25.7%
3232
1335

15.2%
9.0%
24.2%
3795
1515

15.5%
9.3%
24.9%
4163
1728

125
125
125
6.4%
6.5%
6.1%
7.1%
7.0%
7.0%
125.1 125.135 125.132
1000
875
750
1135
1135
1135
2133
2930
3880
3268
4065
5015
4393 5065.14 5890.13

15.50%
9.30% Given
0

9.30%
0.093

6.10%
7%

TIRE CITY - 2011-12 (Q 3a)

Particulars
INCOME STATEMENT
Net Sales
Cost of sales
Gross Profit
SGA
Depreciation
Net Interest Exp.
Pre-tax income
Income Tax
Net Income
Dividends
BALANCE SHEET
ASSETS
Cash
Accounts Receivable
Inventories
Total Current Assets
Gross P & E
Accumulated Depreciation
Net P & E
Total Assets
LIABILITIES
Cur Mat. of LT Debt
Accounts Payable
Accrued Expenses
Total Current Liab.
Long Term Debt-Old
Long Term Debt New
Common Stock
Retained Earnings
Total SH ' Equity
Total Liabilities

1993
16,230
9,430
6,800
5,195

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para

11,898 13,612 16,359 19,631 Sales
8,457 9,893 11,847 14,216
6,352 7,471 9,026 10,831 Sales
333 Given pg. 2 para 1 96= same; 97 ++120
200 Avg Loan Bal.
2,852
1,255 Pre-tax income
1,597

160
119
1,326
546
780

180
106
1,819
822
997

213
94
2,115
925
1,190

213
294
2,313
1,018
1,295

155

200

240

259

508
2,545
1,630
4,683
3,232
1,335
1,897
6,580

609
3,095
1,838
5,542
3,795
1,515
2,280
7,822

706
846 1,015
3,652 4,372 5,246
2,190 2,623 3,148
6,548 7,841 9,409
4,163 6,163 6,563
1,728 1,941 2,274
2,435 4,222 4,289
8,983 12,063 13,698

3% of sales, pg. 2 3rd para

Sales
1996 = 9.3%, 1997: Sales*9.3%

125
1,042
1,145
2,312
1,000

125
1,325
1,432
2,882
875

Accounting
Sales
1996: sales * 5%; 1997 =Sales * 7%

1,135
2,133
3,268
6,580

1,135
2,930
4,065
7,822

125
125
125
1,440 1,721 2,065
1,653 1,410 2,369
3,218 3,256 4,559
750
625
500
0 2,131 1,311
1,135 1,135 1,135
3,880 4,916 6,194
5,015 6,051 7,329
8,983 12,063 13,698

1993

1994

1995 Assumed

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

5.0%

0.9%
0.9%
10.03% 36.23%
8.2%
8.9%
9.0%
41.2% 45.2% 43.7%
4.8%
4.9%
5.1%

10.0%
44.0%

319

Given, pg2 para 1

Given, pg2 para 1

Given page 1
Bal. Fig
Same
=op+pat-div

15.7%
10.0%
25.7%
3232
1335

15.2%
9.0%
24.2%
3795
1515

15.5%
9.3%
24.9%
4163
1728

125
125
125
6.4%
6.5%
6.1%
7.1%
7.0%
7.0%
125.1 125.135 125.132
1000
875
750
1135
1135
1135
2133
2930
3880
3268
4065
5015
4393 5065.14 5890.13

15.50%
9.30%

6.10%
7%

TIRE CITY - 2011-12

Particulars
INCOME STATEMENT
Net Sales
Cost of sales
Gross Profit
SGA
Depreciation
Net Interest Exp.
Pre-tax income
Income Tax
Net Income
Dividends
BALANCE SHEET
ASSETS
Cash
Accounts Receivable
Inventories
Total Current Assets
Gross P & E
Accumulated Depreciation
Net P & E
Total Assets
LIABILITIES
Cur Mat. of LT Debt
Accounts Payable
Accrued Expenses
Total Current Liab.
Long Term Debt-Old
Long Term Debt New
Common Stock
Retained Earnings
Total SH ' Equity
Total Liabilities

1993
16,230
9,430
6,800
5,195
160
119
1,326
546
780

1994

1995

1996

1997 Function of

20,355 23,505 28,206 33,847 Given pg. 2 last para

11,898 13,612 16,359 19,631 Sales
8,457 9,893 11,847 14,216
6,352 7,471 9,026 10,831 Sales
Given pg. 2 para 1 96= same; 97
180
213
213
453 ++240 (tax depn).
106
94
100
34 Avg Loan Bal.
1,819 2,115 2,508 2,898
822
925 1,103 1,275 Pre-tax income
997 1,190 1,404 1,623

155

200

240

281

508
2,545
1,630
4,683
3,232
1,335
1,897
6,580

609
3,095
1,838
5,542
3,795
1,515
2,280
7,822

706
846 1,015
3,652 4,372 4,173
2,190 1,625 3,148
6,548 6,843 8,336
4,163 6,163 6,563
1,728 1,941 2,394
2,435 4,222 4,169
8,983 11,065 12,505

3% of sales, pg. 2 3rd para

Sales*45/365
1996 given, 1997: Sales*9.3%

125
1,042
1,145
2,312
1,000

125
1,325
1,432
2,882
875

Accounting
Sales*45/365
Sales * 7%

1,135
2,133
3,268
6,580

1,135
2,930
4,065
7,822

125
125
125
1,440 2,017 2,420
1,653 1,974 2,369
3,218 4,116 4,915
750
625
500
0
185
-346
1,135 1,135 1,135
3,880 5,004 6,302
5,015 6,139 7,437
8,983 11,065 12,505

1993

1994

58.1%

58.5%

57.9%

58.0%

32.0%

31.2%

31.8%

32.0%

0.9%
10.03%
8.2%
8.9%
41.2% 45.2%
4.8%
4.9%

0.9%
12%
9.0%
43.7%
5.1%

15.7%
10.0%
25.7%
3232
1335

15.5%
9.3%
24.9%
4163
1728

5.0%

1995 Assumed

10.0%
44.0%

325

Given, pg2 para 1

Given, pg2 para 1

Given page 1
Bal. Fig
Same
=op+pat-div

new
15.2%
9.0%
24.2%
3795
1515

12.3%
9.30%

125
125
125 new
6.4%
6.5%
6.1%
7.15%
7.1%
7.0%
7.0%
7%
125.1 125.135 125.132
1000
875
750
1135
1135
1135
2133
2930
3880
3268
4065
5015
4393 5065.14 5890.13

TIRE CITY - 2011-12

Particulars
INCOME STATEMENT
Net Sales
Cost of sales
Gross Profit
SGA
Depreciation
Net Interest Exp.
Pre-tax income
Income Tax
Net Income
Dividends
BALANCE SHEET
ASSETS
Cash
Accounts Receivable
Inventories
Total Current Assets
Gross P & E
Accumulated Depreciation
Net P & E
Total Assets
LIABILITIES
Cur Mat. of LT Debt
Accounts Payable
Accrued Expenses
Total Current Liab.
Long Term Debt-Old
Long Term Debt New

1993
16,230
9,430
6,800
5,195
160
119
1,326
546
780

1994

1995

1996

20,355 23,505
11,898 13,612
8,457 9,893
6,352 7,471
180
213
106
94
1,819 2,115
822
925
997 1,190

28,206
16,359
11,847
9,026
213
-147
2,754
1,212
1,542

155

200

240

308

508
2,545
1,630
4,683
3,232
1,335
1,897
6,580

609
3,095
1,838
5,542
3,795
1,515
2,280
7,822

706
3,652
2,190
6,548
4,163
1,728
2,435
8,983

846
3,526
1,625
5,997
6,163
1,941
4,222
10,219

125
1,042
1,145
2,312
1,000

125
1,325
1,432
2,882
875

125
1,440
1,653
3,218
750
0

125
3,526
1,974
5,625
625
-2,280

Common Stock
Retained Earnings
Total SH ' Equity
Total Liabilities

1,135
2,133
3,268
6,580

1,135
2,930
4,065
7,822

1,135
3,880
5,015
8,983

1,135
5,114
6,249
10,219

1997 Function of
33,847
19,631 .58 * sales
14,216
10,831
453
-161
3,093
1,361
1,732

1993

32%

44%

346

1,015
4,231
3,148
8,394
6,563
2,394
4,169
12,563

125
4,231
2,369
6,725
500
-2,296

3%
0.125
9.30%

6.10%
7%

1994

1995

1,135
6,499
7,634
12,563

Assumed

1996

1997