AUTOS-1

XLS

School

University of California, Los Angeles *

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Course

231E

Subject

Finance

Date

Nov 24, 2024

Type

XLS

Pages

Uploaded by leedevin

Juan Cardenas Automobiles NEW VEHICLE REGISTRATIONS RAINVILLE AREA 1981 1982 1983 Manufacturer Cars Trucks Cars Trucks Cars Trucks Good Co. 205 162 184 171 219 259 Nice Co. 242 180 233 273 186 365 Subtotal 447 342 417 444 405 624 Other U.S. Mfg. 657 31 720 104 778 106 Total U.S. Mfg. 1,104 373 1,137 548 1,183 730 Foreign Mfgers. 1,140 446 913 445 1,133 616 Total Registrations 2,244 819 2,050 993 2,316 1,346 Total 3,063 3,043 3,662 Market Shares Good Market Share 9% 20% 9% 17% 9% 19% Nice Market Share 11% 22% 11% 27% 8% 27% Total 20% 42% 20% 45% 17% 46% Other U.S. Mfg. 29% 4% 35% 10% 34% 8% Total U.S. Mfg. 49% 46% 55% 55% 51% 54% Foreign Mfgers. 51% 54% 45% 45% 49% 46%

Juan Cardenas Automobiles EXHIBIT 2 ACQUISITION COMPANY PROFIT & LOSS (000's) 1981 1982 1983 Gross Income - Cars $1,961 $2,526 $912 Parts 238 222 107 Repair 187 185 99 Total $2,386 $2,933 $1,118 CGS - Cars $1,964 $2,574 $898 Parts 173 62 79 Repair 139 124 60 Total $2,276 $2,760 $1,037 Gross Margin 110 173 81 Fixed Expense 183 258 145 Other Income (exp.) 11 (18) 126 Pretax Net Income ($62) ($103) $62 New Car Sales 98 79 13 New Truck Sales 37 20 0 Used car/truck sales 198 234 74 Total unit sales 333 333 87 Profitability ratios Profit as a percentage of sales (*1) -3% -3% -6% Return on assets (*1) 38% -356% ROE (*1) -22% -46% -20% Solvency Ratios Current ratio 1.2 0.8 2.3 Activity Ratios Car inventory turn 2.9 0.9 Inventory turnover (days) 125 409 Parts inventoty turn 0.3 0.3 Inventory turnover (days) 1,370 1,121 Payables turnover 2.9 1.4 Capitalization Ratios D/E 3.5 6.0 2.4 P COGS - Cars 100% 102% 98% Parts 73% 28% 74% Repair 74% 67% 61% Total 95% 94% 93% Gross Margin 4.6% 5.9% 7.2% Fixed Expenses 7.7% 8.8% 13.0% Pretax Income (*1) -3.1% -2.9% -5.7% (*1) Does not consider other income or expenses

Juan Cardenas Automobiles EXHIBIT 3 For this analysis we consider Ed's proforma Income ACQUISITION COMPANY BALANCE SHEET Statement (000's) 1981 1982 1983 Cash $3 $3 $3 $3 Autos 536 358 820 Inventory Turnover 70 days Parts 130 106 140 Inventory Turnover 150 days Cur. Ass. $669 $467 $963 Equipment 335 317 252 Fixed 0 112 86 Other 500 387 0 Total $1,504 $1,283 $1,301 1981 1982 1983 Notes Pay. on Autos $512 $440 $311 A/P 69 120 117 Cur. Lia $581 $560 $428 L.T. Debt 557 482 275 Other 32 57 51 Total Lia $1,170 $1,099 $754 Net Worth 334 184 320 664 NI+Investment $1,504 $1,283 $1,074

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Juan Cardenas Automobiles Exhibit 4 ACQUISITION COMPANY P&L ANALYSIS FIRST FULL YEAR OF OPERATION Ed Joe Auto Rep. Gross Income - Cars $4,500 $5,400 $4,387 Parts 426 216 295 Repair 445 180 300 Total $5,371 $5,796 $4,982 CGS - Cars $4,090 $4,950 $3,912 Parts 336 145 237 Repair 309 74 231 Total $4,735 $5,169 $4,380 Gross Margin 636 627 602 Fixed Expense 396 NA 334 Other Income (exp.) 24 0 0 Pretax Net Income $264 NA $268 New Car Sales 150 180 NA New Truck Sales 150 180 NA Used car/truck sales 300 360 NA Total unit sales 600 720 585 Proyections compared to Good Sales in Rainville 1993 Cars 68% 82% NA Trucks Infinite Infinite Infinite Ratio Analysis COGS - Cars 91% 92% 89% Parts 79% 67% 80% Repair 69% 41% 77% Total 88% 89% 88% Gross Margin 11.8% 10.8% 12.1% Fixed Expenses 7.4% 6.7% Pretax Income (*1) 4.5% 5.4% (*1) Does not consider other income or expenses