08 - Burrows B Analysis

xls

School

University of California, Los Angeles *

*We aren’t endorsed by this school

Course

231E

Subject

Economics

Date

Nov 24, 2024

Type

xls

Pages

Uploaded by leedevin

BURROWS B Page 1 Burrows A REAL EXPECTED INCOME STATEMENT 1/31/1970 1/31/1971 1/31/1972 1/31/1973 1/31/1974 1/31/1975 1/31/1976 1/31/1977 (1969) (1970) (1971) (1972) (1973) (1974) (1975) (1976) Total Sales 4,235 4,231 4,422 5,207 5,967 6,990 7,945 9,115 Cost of Goods Sold 3,222 3,266 3,426 2,977 3,341 3,914 4,449 5,104 Gross Margin 1,013 965 996 2,230 2,626 3,076 3,496 4,011 Expenses 913 869 908 1,950 2,296 2,666 2,946 3,231 Income Before Income Taxes 100 96 88 280 330 410 550 780 Income Taxes (50%) - - - 140 165 205 275 390 Net Income 100 96 88 140 165 205 275 390 BALANCE SHEET 1/29/1972 2/3/1973 1/31/1974 1/31/1975 1/31/1976 1/31/1977 Cash 14 14 678 819 1,162 1,578 Accounts Receivable 100 3 - - - 100 Inventory 1,412 1,363 1,310 1,540 1,683 1,800 Prepaid Expenses 23 - - - - - Current Assets 1,549 1,380 1,988 2,359 2,845 3,478 Fixtures and Equipment 627 665 870 1,044 1,154 1,264 Less Res. for Depreciation - (470) (542) (629) (733) (859) Leasehold Improvements 293 320 320 320 320 320 Less Res. for Depreciation - (250) (250) (250) (250) (250) Lease Valuation - 50 50 50 50 50 Less Res. for Depreciation (712) - (8) (16) (24) (32) Fixed Assets, net 208 315 440 519 517 493 Other Assets 22 30 40 50 60 70 Total Assets 1,779 1,725 2,468 2,928 3,422 4,041 Accounts Payable 233 36 350 650 750 850 Accrued Liabilities 112 131 230 300 400 500 Taxes Payable 2 - 165 50 69 98 Current Debt 347 167 745 1,000 1,219 1,448 Senior Subordinated Note 1,432 1,000 1,000 1,000 1,000 1,000 Total Debt 1,779 1,167 1,745 2,000 2,219 2,448 Preferred Stock - 248 248 248 248 248 Common Stock - 13 13 13 13 13 Paid-in Surplus - 297 297 297 297 297 Retained Earnings - - 165 370 645 1,035 Total Equity - 558 723 928 1,203 1,593 Total Debt and Equity 1,779 1,725 2,468 2,928 3,422 4,041 - - - - - -

BURROWS B Page 2 Burrows B HIGBEE BURROWS INCOME STATEMENT 1/31/1972 1/31/1973 1/31/1974 1/31/1975 1/31/1976 1/31/1977 (1971) (1972) (1973) (1974) (1975) (1976) Total Sales 4,422 5,169 5,671 6,365 6,960 7,982 Cost of Goods Sold 3,455 4,007 3,285 3,699 3,864 4,338 Gross Margin 967 1,162 2,386 2,666 3,096 3,644 Expenses 908 1,050 2,192 2,469 2,768 3,215 Income Before Income Taxes 59 112 194 197 328 429 Income Taxes (50%) - - 93 88 147 192 Net Income 59 112 101 109 181 237 BALANCE SHEET 1/29/1972 2/3/1973 2/1/1974 2/1/1975 1/31/1976 1/29/1977 Cash 14 15 517 140 185 153 Accounts Receivable 4 91 206 277 283 271 Inventory 1,412 1,514 1,610 1,588 1,765 2,205 Prepaid Expenses 71 61 53 80 95 101 Current Assets 1,501 1,681 2,386 2,085 2,328 2,730 Fixtures and Equipment 627 680 285 408 524 691 Leasehold Improvements 293 321 186 206 225 310 Vehicles - - - - 11 16 Less Res. for Depreciation (711) (720) (47) (106) (178) (266) Fixed Assets, net 209 281 424 508 582 751 Other Assets 22 14 36 39 41 43 Total Assets 1,732 1,976 2,846 2,632 2,951 3,524 Note Payable, Curr. Port. Lease - - 290 - - - Accounts Payable 182 344 780 828 722 928 Accrued Liabilities 110 88 280 201 258 313 Taxes Payable 51 47 77 61 175 228 Current Debt 343 479 1,427 1,090 1,155 1,469 LT Debt 1,389 1,497 750 750 800 800 LT Capital Lease - - - - - - Deferred Taxes - - 10 23 46 68 Total Debt 1,732 1,976 2,187 1,863 2,001 2,337 Preferred Stock - - 248 248 248 248 Common Stock - - 13 13 13 13 Additional Paid-in Capital - - 297 297 297 297 Retained Earnings - - 101 211 392 629 Total Equity - - 659 769 950 1,187 Total Debt and Equity 1,732 1,976 2,846 2,632 2,951 3,524 - - - - - -

BURROWS B Page 3 RATIO ANALYSIS Operational (1970) (1971) (1972) (1973) (1974) (1975) (1976) Sales Growth Burrows A -0.1% 4.5% 17.8% 14.6% 17.1% 13.7% 14.7% Burrows B 16.9% 9.7% 12.2% 9.3% 14.7% COGS/Sales Burrows A 77.2% 77.5% 57.2% 56.0% 56.0% 56.0% 56.0% Burrows B 78.1% 77.5% 57.9% 58.1% 55.5% 54.3% Gross Margin Burrows A 22.8% 22.5% 42.8% 44.0% 44.0% 44.0% 44.0% Burrows B 21.9% 22.5% 42.1% 41.9% 44.5% 45.7% Expenses/Sales Burrows A 20.5% 20.5% 37.4% 38.5% 38.1% 37.1% 35.4% Burrows B 20.5% 20.3% 38.7% 38.8% 39.8% 40.3% EBIT Margin Burrows A 2.3% 2.0% 5.4% 5.5% 5.9% 6.9% 8.6% Burrows B 1.3% 2.2% 3.4% 3.1% 4.7% 5.4% Net Profit Margin Burrows A 2.7% 2.8% 2.9% 3.5% 4.3% Burrows B 1.8% 1.7% 2.6% 3.0% Activity (1970) (1971) (1972) (1973) (1974) (1975) (1976) Collection Days Burrows A 8 0 - - - 4 Burrows B 0 6 13 16 15 12 Inventory Turnover Burrows A 2.4 2.2 2.6 2.5 2.6 2.8 Burrows B 2.4 2.6 2.0 2.3 2.2 2.0 Inventory Days Burrows A 150 167 143 144 138 129 Burrows B 149 138 179 157 167 186 Asset Turnover Burrows A 2.5 3.0 2.4 2.4 2.3 2.3 Burrows B 2.6 2.6 2.0 2.4 2.4 2.3 Payable Days Burrows A 37 20 63 89 94 97 (Acc. Pay + Accr. Liab.) Burrows B 31 39 118 102 93 104 Leverage (1970) (1971) (1972) (1973) (1974) (1975) (1976) Current Ratio Burrows A 4.5 8.3 2.7 2.4 2.3 2.4 Burrows B 4.4 3.5 1.7 1.9 2.0 1.9 Acid Test Burrows A 0.3 0.1 0.9 0.8 1.0 1.2 Burrows B 0.1 0.2 0.5 0.4 0.4 0.3 Current Debt/Total Debt Burrows A 20% 14% 43% 50% 55% 59% Burrows B 20% 24% 65% 59% 58% 63% Debt/Equity Burrows A 2.1 2.4 2.2 1.8 1.5 Burrows B 3.3 2.4 2.1 2.0 Debt/Assets Burrows A 100% 68% 71% 68% 65% 61% Burrows B 100% 100% 77% 71% 68% 66% Profitability (1970) (1971) (1972) (1973) (1974) (1975) (1976) Return on Assets Burrows A 8.1% 6.7% 7.0% 8.0% 9.7% Burrows B 3.5% 4.1% 6.1% 6.7% Return on Equity Burrows A 25.1% 22.8% 22.1% 22.9% 24.5%

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

BURROWS B Page 4 Burrows B 15.3% 14.2% 19.1% 20.0%

BURROWS B Page 5 CASH FLOW ANALYSIS Burrows A (1973) (1974) (1975) (1976) Net Income 165 205 275 390 Depreciation 80 95 112 134 Changes in Current Assets Changes in Current Liabilities Changes in Fixed and Other Assets Net Operational Cash Flows 245 300 387 524 Burrows B (1973) (1974) (1975) (1976) Net Income 101 109 181 237 Interest 73 108 73 75 Effect on Taxes 37 54 37 38 Depreciation (673) 59 72 88 Changes in Cash Changes in Current Liabilities Changes in Fixed and Other Assets Net Operational Cash Flows (536) 222 290 363

BURROWS B Page 6 1/31/1978 (1977) 10,165 5,692 4,473 3,543 930 465 465 1/31/1978 2,036 200 2,000 - 4,236 1,374 (996) 320 (250) 50 (40) 458 80 4,774 1,000 600 116 1,716 1,000 2,716 248 13 297 1,500 2,058 4,774 -

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

BURROWS B Page 7 1/31/1978 1/31/1979 (1977) (1978) 9,617 11,735 5,300 6,308 4,317 5,427 3,774 4,733 543 694 222 275 321 419 1/28/1978 2/3/1979 169 215 354 523 2,060 2,901 112 163 2,695 3,802 883 1,115 402 482 30 53 (381) (527) 934 1,123 49 177 3,678 5,102 - 15 780 1,367 374 408 221 282 1,375 2,072 700 900 - 56 95 139 2,170 3,167 248 248 13 14 297 304 950 1,369 1,508 1,935 3,678 5,102 - -

BURROWS B Page 8 Average (1977) (1978) 1973-1977 11.5% 14.3% 20.5% 22.0% 13.3% 56.0% 56.0% 55.1% 53.8% 56.2% 44.0% 44.0% 44.9% 46.2% 43.8% 34.9% 36.8% 39.2% 40.3% 39.3% 9.1% 7.2% 5.6% 5.9% 4.4% 4.6% 3.6% 3.3% 3.6% 2.5% Average (1977) (1978) 1973-1977 7 2 13 16 14 2.8 2.7 2.6 2.2 2.2 128 136 142 168 166 2.1 2.3 2.6 2.3 2.3 103 89 79 103 99 Average (1977) (1978) 1973-1977 2.5 2.4 2.0 1.8 1.9 1.3 1.0 0.4 0.4 0.4 63% 54% 63% 65% 62% 1.3 1.9 1.4 1.6 2.3 57% 64% 59% 62% 68% Average (1977) (1978) 1973-1977 9.7% 8.2% 8.7% 8.2% 5.9% 22.6% 23.0%

BURROWS B Page 9 21.3% 21.7% 18.0%

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

BURROWS B Page 10 (1977) 465 145 610 (1977) (1978) 321 419 85 86 43 43 115 146 479 608

Related Documents

MTH2.docx

TEST1.docx

IMG_8237.png

Milestone Two Guidelines and Rubric - INT-220-X2950 Global Dimensions in Business 22EW2.pdf

Screenshot 2023-12-03 at 7.17.06 PM.png

EV Charging Station.docx

5.3.2 Practice - Bialey Stringer .pdf

Assignment 3.docx

Dissertation by Noemi Ida Rat.docx

Screenshot - 2023-12-05T010105.926.png

Screenshot 2023-11-29 151403.png

Franklin D. Roosevelt's 100 tax proposal.edited (1) (3).edited.docx

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

Principles of Economics 2e

Economics

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:OpenStax

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Microeconomics A Contemporary Intro

Economics

ISBN:9781285635101

Author:MCEACHERN

Publisher:Cengage

Economics Today and Tomorrow, Student Edition

Economics

ISBN:9780078747663

Author:McGraw-Hill

Publisher:Glencoe/McGraw-Hill School Pub Co

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Microeconomics A Contemporary Intro
Economics
ISBN:9781285635101
Author:MCEACHERN
Publisher:Cengage
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co