Sales

Cost of goods sold

Gross profit
Selling, general, and admin. expenses
Operating income before depreciation and
amortization
Depreciation and amortization
Operating profit
Interest expense, net
Special items
Pretax income
Total income taxes

1986
$745,831

1987
$784,665

1988
$914,057

1989
$876,379

599,915
145,916
63,713
82,203

648,545
136,120
65,193
70,927

768,989
145,068
71,796
73,272

777,755
98,624
75,742
22,882

21,508
60,695
909
2,144
61,930
27,850

24,502
46,425
1,177
316
45,564
18,950

29,955
43,317
1,912
1,756
43,161
12,950

38,995
-16,113
12,265
-5,634
-34,012
-13,980

40058.7

30640.5

28589.22 -10634.58

Reveues

745831

COGS
SGA

599,915
63,713

EBIT

82203

Assets
Cash and cash equivalents
Net receivables
Inventories
Prepaid expenses and other
Other current assets
Total current assets
Gross plant, property, and
equipment
Accumulated depreciation
Net plant, property, and equipment
Deferred charges
Total assets
Liabilities
Notes payable1
Accounts payable
Taxes payable, net
Accrued expenses
Total current liabilities
Long-term debt1
Deferred taxes
Other liabilities
Equity
Common stock
Retained earnings
Common equity
Total liabilities and equity

1986

1987

1988

1989

42,275
52,204
66,732
21,726
5,338
$188,275
427,672

27,443
54,979
67,033
21,892
6,143
$177,490
470,586

4,998
70,002
106,513
19,590
9,330
$210,433
513,700

5,691
91,059
101,588
10,671
14,853
$223,862
580,184

179,325
248,347
0
248,347
$436,622
11,656

196,683
273,903
486
274,389
$451,879
11,758

218,127
295,573
4,594
300,167
$510,600
42,741

249,986
330,198
6,756
336,954
$560,816
63,528

31,145
8,490
43,130
43130
$94,421
0
38,614
10,070

38,921
51,130
42,309
5,592
7,526
624
43,938
43938 45,664
4566453,664
53664
$100,209 $147,061 $160,125
0
0
75,000
45,064
49,461
54,962
10,346
10,773
11,523

43,391
43,391
43,391
43,391
250,126 252,869 259,835 215,835
293,517 296,260 303,226 259,226
$436,622 $451,879 $510,521 $560,836

Beta
Rf
Rm-Rf

Ke
Kd
After Tax K

WACC
WACC*CE
EVA

86
146,000

87
150,047

88
205,435

89
218,171

Non-int bearing Current Liabilities

82,765

88,451

104,320

96,597

Net working capital

63235

61596

101115

121574

Fixed Operating assets

248347

273903

295573

330198

Net PPE

Other assets

248,347
0

273,903
0

295,573
0

330,198
0

Capital Employed

311,582

335,499

396,688

451,772

NOPAT

40058.7

30640.5

28589.22

-10634.58

14.47
32.09

14.47
35.92

14.47
30.8

14.47
28.15

464342.3

519762.4

445676

407330.5

11,656

11,758

42,741

63,528

475,998

531,520

488,417

470,859

2.4%
97.6%

2.2%
97.8%

8.8%
91.2%

13.5%
86.5%

10.11%
0.7
9.33%
6.20%

0.75
8.03%

1
9.15%

1
8.28%

13.6700%
10.77%
7.1%

12.6800%
10.62%
7.0%

15.3500%
10.66%
7.0%

14.4800%
10.11%
6.7%

Operating current assets

Outstanding shrea
MPS
MV Of Equity
MV Of Debt
TOTAL
Weight of Debt
Weight of Equity
Kd
Beta
Rf
Rm-Rf

Ke
Kd
After Tax Kd

WACC

13.51%

12.55%

14.62%

13.43%

WACC*CE

42,092.60

42,120.40

58,005.36

60,657.75

EVA

-2,033.90

-11,479.90

-29,416.14

-71,292.33

Discounted Cash Flow Technique:

Year 0
NOPAT
+ Depreciation
= Free cash flow

(8,000)

Year 1
250
2,000
2,250

Year 2
500
2,000
2,500

Year 3
750
2,000
2,750

Year 4
1,000
2,000
3,000

Present Value of Future EVAs:

Capital employed (book value)

6,000

4,000

2,000

NOPAT

250

500

750

1,000

WACC Capital employed

800
(550)

600
(100)

400
350

200
800

NPV @ 10% =

8,000

227