KK-Burrow-A

xls

School

University of California, Los Angeles *

*We aren’t endorsed by this school

Course

231E

Subject

Accounting

Date

Nov 24, 2024

Type

xls

Pages

Uploaded by leedevin

Becker JJ Malloy Employees Co-investors Total Unit purchases 1 5 1 1 4 11 Convertible preferred 450 2,250 450 450 1,800 4,950 Common shares 500 2,500 500 500 2,000 5,500 Direct share purchases Common shares 3,775 3,775 7,550 Total capitalization Common 6,275 4,275 500 2,000 13,050 Convertible preferred 2,250 450 450 1,800 4,950 Fully diluted Common 5 17,525 6,525 2,750 11,000 37,800 Price paid for units 50,000 250,000 50,000 50,000 200,000 550,000 Price paid for direct shares 3,775 3,775 0 0 7,550 253,775 53,775 50,000 200,000 557,550 Average price per fully diluted common share 14.48 8.24 18.18 18.18 14.75 $ savings in $1/share stock purchase of 3,775 shares 64,861 64,861

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 2 EXHIBIT Ia BURROWS, INC Projected Statement of Income for the Six Years Ending January 31st, 1978 (000) 1972-1977 Annual Sales $Sa Opening Square Feet 1/31/1973 1/31/1974 1/31/1975 1/31/1976 1/31/1977 1/31/1978 Increase Sq. Ft. Gro Store Location Date Gross Selling (1972) (1973) (1974) (1975) (1976) (1977) CAGR (%/yr.) (1972) Downtown 9/18/1971 26,463 9,500 1300 1360 1000 1000 1000 1000 -5.1% 6 49 Eastwood Mall 2/1/1971 4,878 3,652 100 175 175 200 225 250 20.1% 30 21 Great Lakes Mall 4,454 3,415 250 273 350 400 450 500 14.9% 20 56 Subway Downtown 5/1/1973 1,596 1,422 110 112 135 145 150 0 8.1% 7 69 Southland 5,000 4,100 0 146 200 250 300 350 24.4% 33 Severence Center 4,304 2,594 530 567 600 650 700 750 7.2% 8 123 Southgate Center 4,550 3,140 470 494 530 560 590 620 5.7% 5 103 Warren Road 4,000 2,289 210 217 240 255 270 285 6.3% 7 53 Webster Company (contract sales) 10,000 0 125 149 175 200 225 250 14.9% 20 13 Willowich 4,200 2,702 185 196 215 230 245 260 7.0% 19 44 Shaker Heights 3,978 2,098 230 239 260 275 290 300 5.5% 6 58 Summit Mall 9/1/1973 4,500 3,700 0 130 170 200 230 260 18.9% 23 Shaker Square 5,474 4,085 360 377 400 420 440 460 5.0% 5 66 Chapel Hill 4,500 3,700 0 0 150 200 250 300 26.0% 25 Westgate Center 3,600 2,567 400 443 450 475 500 525 5.6% 6 111 Farmstown Center 4,500 3,096 330 348 390 420 450 480 7.8% 9 73 Great Northern Center 2,750 2,388 220 230 250 265 280 295 6.0% 7 80 Eastwood Mall-Kiosk 10/4/1971 528 528 97 108 120 130 140 150 9.1% 11 184 Farms-Kiosk 2/1/1972 1,000 1,000 160 163 200 220 240 260 10.2% 12 160 Southern Park 8/72 4,026 3,023 130 240 230 260 290 320 19.7% 9 32 Brooklyn Heights Warehouse 11/73 40,000 4,000 0 0 650 800 1000 1200 22.7% Rolling Acres 10/74 4,500 3,700 0 0 100 140 200 230 32.0% Midway Mall 5/75 4,500 3,700 0 0 0 150 200 250 29.1% Belden Village 8/75 4,500 3,700 0 0 0 100 200 250 11.8% Strongsville 5/76 4,500 3,700 0 0 0 0 150 200 33.3% 9th & Euclid 8/76 4,500 3,700 0 0 0 0 100 150 50.0% Eastland 5/77 4,500 3,700 0 0 0 0 0 150 n/a Westland 8/77 4,500 3,700 0 0 0 0 0 120 n/a Total Sales 175,801 88,899 5,207 5,967 6,990 7,945 9,115 10,165 15.2% 20 30 Cost of Goods Sold 2,977 3,341 3,914 4,449 5,104 5,692 Gross Margin 2,230 2,626 3,076 3,496 4,011 4,473 Expenses 1,950 2,296 2,666 2,946 3,231 3,543 Income Before Income Taxes 280 330 410 550 780 930 Income Taxes 140 165 205 275 390 465 Net Income $140 $165 $205 $275 $390 $465 (%Sales) 2.7% 2.8% 2.9% 3.5% 4.3% 4.6% 0.1459574 0.1714429 0.1366237 0.1472624292 0.115194734 42.8% 44.0% 44.0% 44.0% 44.0% 44.0%

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 3 37% 38% 38% 37% 35% 35% (1972) (1973) (1974) (1975) (1976) (1977) Sales growth rate 5% 4,166 4,774 5,592 6,356 7,292 8,132 GM 42% 1,750 2,005 2,349 2,670 3,063 3,415 Expenses 40% 1,666 1,909 2,237 2,542 2,917 3,253 EBIT 83 95 112 127 146 163 D&A 80 80 95 112 134 145 EBITDA 163 175 207 239 280 308 Capex 174 110 110 110 0 0 Free cash flow (11) 65 97 129 280 308 Exit multiple 8.00 2,461 IRR 18.0% (11) 56 70 79 145 1,212 Total cash flow 1,550 Payoff debt 1,000 Cash to equity holders 550 Shares outstanding 37,800 Cash per share $14.55 B/E discount rate Return to Becker 14.48 0% 16% Return to Malloy 8.24 77% 21% Return to Employees 18.18 -20% 14% Return to Co-investors 18.18 -20% 14% EXHIBIT Ib BURROWS, INC Projected Statement of Income for Twelve Months Ending January 31, 1974 (000) Store Location F M A M J J A S O N D Downtown $108 $128 $112 $106 $123 $96 $82 $120 $100 $105 $180 Eastwood Mall 12 15 15 10 14 12 11 16 11 14 35 Great Lakes Mall 16 20 17 15 20 15 16 25 16 23 70 Subway Downtown 9 10 8 8 10 7 7 9 8 11 15 Southland 0 0 0 10 14 13 12 19 13 15 35 Severence Center 36 42 37 34 50 33 35 60 40 45 110 Southgate Center 35 40 32 30 40 30 32 50 33 37 95

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 4 Warren Road 15 18 14 13 16 12 14 22 17 18 38 Webster Company (contract sales) 5 25 8 10 10 30 7 15 7 15 10 Willowich 14 17 15 12 16 13 12 19 13 15 35 Shaker Heights 17 20 17 16 21 14 15 25 18 18 36 Summit Mall 0 0 0 0 0 0 0 18 12 20 60 Shaker Square 23 27 21 25 35 20 24 37 25 33 80 Chapel Hill 0 0 0 0 0 0 0 0 0 0 0 Westgate Center 27 34 28 25 35 26 28 45 30 35 95 Farmstown Center 23 27 22 20 25 20 19 36 22 29 75 Great Northern Center 15 18 15 14 17 14 13 25 15 19 45 Eastwood Mall-Kiosk 9 10 6 9 10 5 6 8 7 9 23 Farms-Kiosk 14 15 9 12 15 8 9 12 10 13 37 Southern Park 15 17 15 14 17 14 18 20 14 22 60 Total Sales 393 483 391 383 488 382 360 581 411 496 1,134 Cost of Goods Sold 220 270 219 214 273 214 202 325 230 278 636 Gross Margin 173 213 172 169 215 168 158 256 181 218 498 Expenses 170 195 170 170 190 170 172 227 175 190 277 Income Before Income Taxes 3 18 2 (1) 25 (2) (14) 29 6 28 221 Income Taxes 1 9 1 0 13 (1) (7) 15 3 14 110 Net Income (loss) 2 9 1 (1) 12 (1) (7) 14 3 14 111 EXHIBIT II BURROWS, INC. Projected Balance Sheet for the Twelve Months Ending January 31, 1974 and the Five Years Ending January 31, 1978 (000) 2/3/1973 3/3/1973 3/31/1973 4/28/1973 5/26/1973 6/23/1973 7/28/1973 8/25/1973 9/22/1973 10/27/1973 11/24/1973 Cash $14 $314 $444 $462 $418 $450 $434 $410 $401 $371 $392 Accounts Receivable 3 3 2 1 0 0 0 0 0 0 0 Inventory 1,363 1,295 1,200 1,200 1,255 1,200 1,310 1,310 1,310 1,310 1,475 1,380 1,612 1,646 1,663 1,673 1,650 1,744 1,720 1,711 1,681 1,867 Fixtures and Equipment 665 665 665 665 720 735 745 772 817 860 870 Less Res. for Depreciation (470) (475) (480) (485) (490) (496) (502) (508) (514) (521) (528) Leasehold Improvements 320 320 320 320 320 320 320 320 320 320 320 Less Res. for Depreciation (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) (250) Lease Valuation 50 50 50 50 50 50 50 50 50 50 50 Less Res. for Depreciation 0 (1) (2) (2) (3) (4) (4) (5) (6) (6) (7) Fixed Assets, net 315 309 303 298 347 355 359 379 417 453 455 Other Assets 30 30 30 30 30 30 40 40 40 40 40

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 5 $1,725 $1,951 $1,979 $1,991 $2,050 $2,035 $2,143 $2,139 $2,168 $2,174 $2,362 Accounts Payable $36 $250 $250 $250 $300 $250 $350 $350 $350 $350 $500 Accured Liabilities 131 140 150 160 170 180 190 200 200 200 210 Income Taxes Payable 0 1 10 11 11 24 23 16 31 34 48 167 391 410 421 481 454 563 566 581 584 758 Senior Subordinated Note 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,167 1,391 1,410 1,421 1,481 1,454 1,563 1,566 1,581 1,584 1,758 Preferred Stock 248 248 248 248 248 248 248 248 248 248 248 Common Stock 13 13 13 13 13 13 13 13 13 13 13 Paid-in Surplus 297 297 297 297 297 297 297 297 297 297 297 Retained Earnings 0 2 11 12 11 23 22 15 29 32 46 558 560 569 570 569 581 580 573 587 590 604 $1,725 $1,951 $1,979 $1,991 $2,050 $2,035 $2,143 $2,139 $2,168 $2,174 $2,362 Current Ratio 8.3 4.1 4.0 4.0 3.5 3.6 3.1 3.0 2.9 2.9 2.5 Working Capital $1,213 $1,221 $1,236 $1,242 $1,192 $1,196 $1,181 $1,154 $1,130 $1,097 $1,109 EXHIBIT III BURROWS, INC Projected Statement of Cash Flow for the Twelve Months Ending January 31, 1974 and the Five Years Ended January 31, 1978 (000) 1973 F M A M J J A S O N D

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 6 Source Net Income $2 $9 $1 ($1) $12 ($1) ($7) $14 $3 $14 $111 Depreciation and Amortization 6 6 5 6 7 6 7 7 7 8 8 Cash Flow from Operations 8 15 6 5 19 5 0 21 10 22 119 Decrease in Inventory 68 95 0 0 55 0 0 0 0 0 110 Increase in Current Liabilities 224 19 11 60 0 109 3 15 3 174 220 Decrease in Accounts Receivable 0 1 1 1 0 0 0 0 0 0 0 Total Sources 300 130 18 66 74 114 3 36 13 196 449 Use Capital Expenditures 0 0 0 55 15 10 27 45 43 10 0 Increase in Inventory 0 0 0 55 0 110 0 0 0 165 0 Decrease in Current Liabilities 0 0 0 0 27 0 0 0 0 0 0 Increase in Other Assets 0 0 0 0 0 10 0 0 0 0 0 Increase in Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 Total Uses 0 0 0 110 42 130 27 45 43 175 0 Cash Increase (decrease) 300 130 18 (44) 32 (16) (24) (9) (30) 21 449 Cash Balance, End of Month/year 314 444 462 418 450 434 410 401 371 392 841 EXHIBIT VII BURROWS, INC Capital Expenditures Forecast (000$) 1973 1974 1975 1976 1977 Warehouse October 40 Remodeling Store 0 June 15 5 August 27 6 November 10 27 15 June 27 7 October 3 14 May 10 10 New Fixtures 4 May 45 11 September 45 13 May 50 21 October 50 22 May 50 23 August 50 24 May 50 25 August 50 26 May 50 27 August 50 Contingency 10 10 10 10 10

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 7 Total 205 174 110 110 110

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 8 ales oss Space (1977) 38 51 112 70 174 136 71 25 62 75 58 84 67 146 107 107 284 260 79 30 51 56 56 44 33 33 27 58

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 9 J Total $100 $1,360 10 175 20 273 10 112 15 146 45 567 40 494

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 10 20 217 7 149 15 196 22 239 20 130 27 377 0 0 35 443 30 348 20 230 6 108 9 163 14 240 465 5,967 260 3,341 205 2,626 190 2,296 15 330 7 165 8 165 12/22/1973 1/31/1974 1/31/1975 1/31/1976 1/31/1977 1/31/1978 $841 $678 $819 $1,162 $1,578 $2,036 0 0 0 0 100 200 1,365 1,310 1,540 1,683 1,800 2,000 2,206 1,988 2,359 2,845 3,478 4,236 870 870 1,044 1,154 1,264 1,374 (535) (542) (629) (733) (859) (996) 320 320 320 320 320 320 (250) (250) (250) (250) (250) (250) 50 50 50 50 50 50 (8) (8) (16) (24) (32) (40) 447 440 519 517 493 458 40 40 50 60 70 80

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 11 $2,693 $2,468 $2,928 $3,422 $4,041 $4,774 $600 $350 $650 $750 $850 $1,000 220 230 300 400 500 600 158 165 50 69 98 116 978 745 1,000 1,219 1,448 1,716 1,000 1,000 1,000 1,000 1,000 1,000 1,978 1,745 2,000 2,219 2,448 2,716 248 248 248 248 248 248 13 13 13 13 13 13 297 297 297 297 297 297 157 165 370 645 1,035 1,500 715 723 928 1,203 1,593 2,058 $2,693 $2,468 $2,928 $3,422 $4,041 $4,774 2.3 2.7 2.4 2.3 2.4 2.5 $1,228 $1,243 $1,359 $1,626 $2,030 $2,520 Years Ending J 1/31/1974 1/31/1975 1/31/1976 1/31/1977 1/31/1978

375d4383d93ce3e9099b2866fa3e3d88fc2e32f7.xls Page 12 $8 $165 $205 $275 $390 $465 7 80 95 112 134 145 15 245 300 387 524 610 55 383 0 0 0 0 0 578 255 219 229 268 0 3 0 0 0 0 70 1,209 555 606 753 878 0 205 174 110 110 110 0 330 230 143 117 200 233 0 0 0 0 0 0 10 10 10 10 10 0 0 0 0 100 100 233 545 414 263 337 420 (163) 664 141 343 416 458 678 678 819 1,162 1,578 2,036

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version