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    Tire City Spreadsheet Solution

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    suwimolJ
    The document provides financial statements for Tire City, Inc. for the years 1993-1995 including income statements, balance sheets, and key financial ratios. It shows steady increases in net sales, gross profit, net income, assets, and retained earnings over the three-year period. Cost of goods sold as a percentage of net sales and selling, general and administrative expenses as a percentage of net sales remained relatively consistent. The company maintained a current ratio above 2, indicating adequate short-term liquidity to meet obligations.

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    Tire City Spreadsheet Solution

    Uploaded by

    suwimolJ
    257 views8 pages
    The document provides financial statements for Tire City, Inc. for the years 1993-1995 including income statements, balance sheets, and key financial ratios. It shows steady increases in net sales, gross profit, net income, assets, and retained earnings over the three-year period. Cost of goods sold as a percentage of net sales and selling, general and administrative expenses as a percentage of net sales remained relatively consistent. The company maintained a current ratio above 2, indicating adequate short-term liquidity to meet obligations.

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    The document provides financial statements for Tire City, Inc. for the years 1993-1995 including income statements, balance sheets, and key financial ratios. It shows steady increases in net sales, gross profit, net income, assets, and retained earnings over the three-year period. Cost of goods sold as a percentage of net sales and selling, general and administrative expenses as a percentage of net sales remained relatively consistent. The company maintained a current ratio above 2, indicating adequate short-term liquidity to meet obligations.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    257 views8 pages

    Tire City Spreadsheet Solution

    Uploaded by

    suwimolJ
    The document provides financial statements for Tire City, Inc. for the years 1993-1995 including income statements, balance sheets, and key financial ratios. It shows steady increases in net sales, gross profit, net income, assets, and retained earnings over the three-year period. Cost of goods sold as a percentage of net sales and selling, general and administrative expenses as a percentage of net sales remained relatively consistent. The company maintained a current ratio above 2, indicating adequate short-term liquidity to meet obligations.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 8

    Exhibit 1

    Financial Statements for Tire City, Inc.

    For years ending 12/31

    1993

    1994

    1995

    Net sales
    Cost of sales
    Gross Profit

    $ 16,230
    9,430
    6,800

    $ 20,355
    11,898
    8,457

    $ 23,505
    13,612
    9,893

    Selling, general, and administrative exp


    Depreciation
    Net interest expense
    Pre-tax income
    Income taxes
    Net income

    5,195
    160
    119
    1,326
    546
    $
    780

    6,352
    180
    106
    1,819
    822
    $
    997

    7,471
    213
    94
    2,115
    925
    $ 1,190

    Dividends

    155

    200

    240

    508
    2,545
    1,630
    4,683

    609
    3,095
    1,838
    5,542

    706
    3,652
    2,190
    6,548

    INCOME STATEMENT

    Proportion of COGS t
    58.10%

    Proportion of SGA t
    32.01%

    Proportion of Income Taxes to


    41.18%

    Proportion of PAT paid as Divi


    19.87%

    BALANCE SHEET
    Assets
    Cash balances
    Accounts receivable
    Inventories
    Total current assets
    Gross plant & equipment
    Accumulated depreciation
    Net plant & equipment
    Total assets
    Liabilities
    Current maturities
    Accounts payable
    Accrued expenses
    Total current liabilities

    3,232
    1,335
    1,897

    3,795
    1,515
    2,280

    4,163
    1,728
    2,435

    $ 6,580

    $ 7,822

    $ 8,983

    125
    1,042
    1,145
    2,312

    125
    1,325
    1,432
    2,882

    125
    1,440
    1,653
    3,218

    Long-term debt

    1,000

    875

    750

    Common stock
    Retained earnings
    Total shareholders' equity

    1,135
    2,133
    3,268

    1,135
    2,930
    4,065

    1,135
    3,880
    5,015

    $ 6,580

    $ 7,822

    $ 8,983

    Total liabilities

    Proportion of Cash t
    3.13%

    Proportion of Account Recei


    15.68%

    Proportion of COGS to Sales


    58.45%
    57.91%

    Average
    58.16%

    Proportion of SGA to Sales


    31.21%
    31.78%

    Average
    31.67%

    Proportion of Income Taxes to Pre Tax IncomeAverage


    45.19%
    43.74%
    43.37%
    Proportion of PAT paid as Dividends
    20.06%
    20.17%

    Proportion of Cash to Sales


    2.99%
    3.00%

    Average
    20.03%

    Average
    3.04%

    Proportion of Account Receivables to Sales Average


    15.21%
    15.54%
    15.47%

    Profitability
    Return on Sales
    Return on Capital
    Return on Equity
    Liquidity
    Current Ratio
    Quick Ratio
    Leverage
    Assets / Equity
    Debt / Total Capital
    Interest Coverage
    Activity Ratios
    Sales / Assets
    Days Receivable
    Days Inventory
    Days Payable
    Purchases

    1993

    1994

    1995

    4.81%
    18.28%
    23.87%

    4.90%
    20.18%
    24.53%

    5.06%
    20.64%
    23.73%

    2.03
    1.32

    1.92
    1.29

    2.03
    1.35

    2.01
    26.36%
    12.14

    1.92
    20.24%
    18.16

    1.79
    15.18%
    23.50

    2.47
    57.24
    63.09
    NA

    2.60
    55.50
    56.39
    39.95

    2.62
    56.71
    58.72
    37.64

    Data NA

    12,106

    13,964

    In Thousands of Dollars
    INCOME STATEMENT
    Net Sales
    Cost of Sales
    Gross Profit
    Selling, General &
    Administrative Expenses
    Depreciation
    Net Interest Expense
    Pre Tax Income

    ASSUMPTIONS
    20% Growth Per Annum
    58.2% of Sales

    1996

    1997

    28,206
    16,416
    11,790

    31.7% of Sales
    Assumption Given in the C
    Reconciled

    8,941
    213
    129
    2,507

    Income Taxes
    Net Income

    43.4% of PBT

    1,088
    1,419

    Dividends

    20% of PAT

    BALANCE SHEET
    ASSETS
    Cash Balances
    Accounts Receivables
    Inventories
    Total Current Assets

    284
    1996

    3% of Sales
    15.5% of Sales
    Assumptions Given

    Gross Plant & Equipment


    Assumptions Given
    Accumulated Depreciation 1996, Increase of $213
    1997, Increase of $213 plus
    5% of $2,400
    Net Plant & Equipment
    Total Assets

    Constant
    Balancing Figure
    7% of Sales
    7% of Sales

    Long Term Debt

    Decreases by $125

    Common Stock

    Constant

    10,730 Average Relationship with


    333
    116
    2,970
    1,289 Average Tax Rate
    1,681
    336 Average Dividends Payout
    1997

    846
    4,372
    1,625
    6,843

    1,015 Average of Relationship wit


    5,246 Average Realtionship with
    3,146
    9,408

    6,163

    6,563

    1,941
    4,222

    2,274
    4,289

    11,065

    LIABILITIES
    Current Maturities
    Bank Debt
    Accounts Payable
    Accrued Expenses
    Total Current Liabilities

    33,847
    19,699
    14,148

    13,697

    125
    414
    1,777
    1,974
    4,290

    125
    1,077
    2,132
    2,369
    5,704

    625

    500

    1,135

    1,135

    Retained Earnings
    Total Shareholders Equity
    Total Liabilities & Equity

    Beginning RE + PAT + Divi

    5,015
    6,150

    6,360
    7,495

    11,065

    13,698

    erage Relationship with Sales

    erage Tax Rate

    erage Dividends Payout Ratio

    erage of Relationship with Sales


    erage Realtionship with Sales

    Total Depreciation
    Increase in De for 1997
    333
    2,274

    Profitability
    Return on Sales
    Return on Capital
    Return on Equity
    Liquidity
    Current Ratio
    Quick Ratio

    1996

    1997

    5.03%
    22.85%
    23.07%

    4.97%
    22.47%
    22.43%

    1.59
    1.22

    1.65
    1.10

    Leverage
    Assets / Equity
    1.80
    Debt / Total Capita 11.07%
    Interest Coverage
    20.43

    1.83
    7.82%
    26.60

    Activity Ratios
    Sales / Assets
    Days Receivable
    Days Inventory
    Days Payable

    2.55
    56.58
    36.13
    40.92

    2.47
    56.58
    58.29
    34.07

    15,851

    22,845

    Purchases

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