A B C D E F G H I J K

1 FINANCIAL ANALYSIS MODEL

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3 CHANGED SOFT & FIGURES
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6 INCOME STATEMENT 2016 2017 2018
7 Sales Revenue $3,000 $3,500 $4,000
8 Less: Cost of Goods Sold $1,200 $1,350 $1,550
9 Gross Profits $1,800 $2,150 $2,450
10 Less: Operating Expenses:
11 Selling Expense $140 $150 $155
12 General / Admin. Exp. $270 $280 $285
13 Lease Expense $6 $1 $4
14 Depreciation Expense $10 $11 $12
15 Total Operating Expenses $426 $442 $456
16 Operating Profits $1,374 $1,708 $1,994
17 Less: Interest Expense $25 $30 $32
18 Net Profits Before Taxes $1,349 $1,678 $1,962
19 Less: Taxes $216 $268 $314
20 Net Profit After Taxes $1,133 $1,410 $1,648
21 Less: Stock Divds. $0 $0 $0
Earnings Available for Common
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Stockholders $1,133 $1,410 $1,648
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25 BALANCE SHEET
26 Current Assets:
27 Cash $31 $12 $18
28 Marketable Securities $82 $66 $68
29 Accounts Receivable $104 $152 $160
30 Inventories $145 $191 $200
31 Total Current Assets $362 $421 $446
32 Gross Fixed Assets (at cost):
33 Land & Buildings $180 $195 $200
34 Machinery and Equipment $0 $0 $0
35 Furniture & Fixtures $0 $0 $0
36 Vehicles $0 $0 $0
37 Other (Inc. Fin. Leases) $0 $0 $0
38 Total Gross Fixed Assets $180 $195 $200
39 Less: Accumulated Depreciation $52 $63 $65
40 Net Fixed Assets $128 $132 $135
41 Other Assets $0 $0 $0
42 Total Assets $490 $553 $581
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44 Current Liabilities: 1 2 3
45 Accounts Payable $130 $145 $160
46 Notes Payable $150 $170 $180
47 Accruals $20 $25 $30
48 Taxes Payable $0 $0 $0
49 Other Current Liabilities $0 $0 $0
50 Total Current Liabilities $300 $340 $370
51 L / T Debt (Inc. Financial Leases) $50 $40 $20
52 Total Liabilities $350 $380 $390
53 Preferred Stock $0 $0 $0
54 Common Stock $30 $30 $30
55 Paid-In Capital In Excess of Par $30 $30 $30
56 Retained Earnings $80 $113 $131
57 Total Stockholders' Equity $140 $173 $191
58 Total Liabs. & Stockholders' Equity $490 $553 $581
59 Reconciliation TA & TL/SE $0 $0 $0
60 Number of Common Shares 500 500 500
61 End-of-Year Stock Price $3.00 $5.00 $5.50
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63 RATIO ANALYSIS
64 Current Ratio 1.21 1.24 1.21
65 Quick Ratio 0.72 0.68 0.66
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67 Inventory Turnover 8.28 7.07 7.75
68 Average Collection Period 12.48 15.63 14.40 accounts receivable/(sales revenues/360)
69 Fixed Asset Turnover 23.44 26.52 29.63
70 Total Asset Turnover 6.12 6.33 6.88
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72 Debt Ratio 0.71 0.69 0.67 Total liabilities/total assets,where TL=total current liabilities+LTDebt
73 Debt-to-Equity 0.36 0.23 0.10 Long Term Debt/Equity
74 Times Interest Earned 54.96 56.93 62.31 Operating profit/interest expenses
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76 Gross Profit Margin 60.00% 61.43% 61.25%
77 Operating Profit Margin 45.80% 48.80% 49.85%
78 Net Profit Margin 37.77% 40.27% 41.20%
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80 Return on Total Assets (ROA) 231.26% 254.89% 283.66%
81 Return on Equity (ROE) 809.40% 814.75% 862.87%
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83 Earnings Per Share $2.27 $2.82 $3.30
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85 Price/Earnings Ratio 1.32 1.77 1.67
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87 DUPONT ANALYSIS
88 Net Profit AT/Sales 37.77% 40.27% 41.20% ROE=net profit margin*Assets Turnover*equity multiplier(leverage)=ROA*e
89 Sales/Total Assets 612.24% 632.91% 688.47% ROE=net profit/sales*sales/assets*assets/equity
90 ROA 231.26% 254.89% 283.66%
91 Net Profit AT/Total Assets 231.26% 254.89% 283.66%
92 Total Assets/Stockhldrs. Equity 350.00% 319.65% 304.19%
93 ROE 809.40% 814.75% 862.87%
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98 STATEMENT OF CASH FLOWS
CASH FLOW FROM
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OPERATING ACTIVITIES 1 2 3
100 Net Profit After Taxes $1,410 $1,648
101 Depreciation $11 $12
102 Decrease in Accts. Receiv. ($48) ($8)
103 Decrease in Inventories ($46) ($9)
104 Decrease in Other Assets $0 $0
105 Increase in Accounts Pay. $15 $15
106 Increase in Accruals $5 $5
107 Increase in Taxes Payable $0 $0
108 Increase in Other Cur. Lia. $0 $0
109 Cash Flow from Oper. Act. $1,347 $1,663
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CASH FLOW FROM
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INVESTMENT ACTIVITIES
112 Increase in Gross Fixed Assets ($15) ($5)
113 Cash Flow from Investments ($15) ($5)
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CASH FLOW FROM FINANCING
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ACTIVITIES
116 Increase in Notes Payable $20 $10
117 Increase in Long-Term Debt ($10) ($20)
118 Changes in Stockholders' Equity $0 $0
119 Preferred Dividends Paid $0 $0
Common
120 Cash FlowDividends Paid (-)
from Financing ($5)
121 Activities $5 ($10)
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123 Net Incr. in Cash / Mark. Securities $1,337 $1,648
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ROE=net profit margin*Assets Turnover*equity multiplier(leverage)=ROA*equity
88 multiplier(leverage)
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