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A

FINANCIAL ANALYSIS MODEL

Note: Enter data in Blue-coded cells; Black cells are computer generated
2
3 ANALYST'S NAME
Dr. Glenn L. Stevens
4 NAME OF COMPANY
Sample Firm
5
FIRST CALENDAR YEAR OF
6 DATA
1996
7
8 NUMBER OF YEARS OF DATA
3
9
10
11
12 INCOME STATEMENT
1996
1997
1998
13 Sales Revenue
$1,500
$1,550
$1,700
$0
14 Less: Cost of Goods Sold
$1,000
$1,030
$1,040
$0
15 Gross Profits
$500
$520
$660
16 Less: Operating Expenses:
17 Selling Expense
$140
$150
$155
$0
18 General / Admin. Exp.
$260
$270
$275
$0
19 Lease Expense
$5
$0
$2
$0
20 Depreciation Expense
$10
$11
$12
$0
21 Total Operating Expenses
$415
$431
$444
22 Operating Profits
$85
$89
$216
23 Less: Interest Expense
$23
$29
$30
$0
24 Net Profits Before Taxes
$62
$60
$186
25 Less: Taxes
$10
$12
$15
$0
26 Net Profit After Taxes
$52
$48
$171
27 Less: Pref. Stock Divds.
$1
$0
$0
$0
Earnings Available for Common
28 Stockholders
$51
$48
$171
29
30
31 BALANCE SHEET
32 Current Assets:
33 Cash
$31
$12
$18
$0
34 Marketable Securities
$82
$66
$68
$0
35 Accounts Receivable
$104
$152
$160
$0
36 Inventories
$145
$191
$200
$0
37 Total Current Assets
$362
$421
$446
38 Gross Fixed Assets (at cost):
39 Land & Buildings
$180
$195
$200
$0
40 Machinery and Equipment
$0
$0
$0
$0
41 Furniture & Fixtures
$0
$0
$0
$0
42 Vehicles
$0
$0
$0
$0
43 Other (Inc. Fin. Leases)
$0
$0
$0
$0
44 Total Gross Fixed Assets
$180
$195
$200
45 Less: Accumulated Depreciation
$52
$63
$65
$0
46 Net Fixed Assets
$128
$132
$135
47 Other Assets
$0
$0
$0
$0
48 Total Assets
$490
$553
$581
49
50 Current Liabilities:
1996
1997
1998
51 Accounts Payable
$126
$136
$150
$0
52 Notes Payable
$190
$200
$140
$0
53 Accruals
$25
$27
$28
$0
54 Taxes Payable
$0
$0
$0
$0
55 Other Current Liabilities
$0
$0
$0
$0
56 Total Current Liabilities
$341
$363
$318
57 L / T Debt (Inc. Financial Leases)
$40
$38
$13
$0
58 Total Liabilities
$381
$401
$331
59 Preferred Stock
$0
$0
$0
$0
60 Common Stock
$20
$20
$20
$0
61 Paid-In Capital In Excess of Par
$30
$30
$30
$0
62 Retained Earnings
$59
$102
$200
$0
63 Total Stockholders' Equity
$109
$152
$250
64 Total Liabs. & Stockhldrs' Equity
$490
$553
$581
65
$0
$0
$0
Reconciliation TA & TL/SE
66 Number of Common Shares
500
500
500
0
0

$0
$0
=IF($B$8>4,F13-F14," ")
$0
$0
$0
$0
=IF($B$8>4,SUM(F17:F20)," ")
=IF($B$8>4,F15-F21," ")
$0
=IF($B$8>4,F22-F23," ")
$0
=IF($B$8>4,F24-F25," ")
$0
IF($B$8>4,F26-F27," ")

$0
$0
$0
$0
=IF($B$8>4,SUM(F33:F36)," ")
$0
$0
$0
$0
$0
=IF($B$8>4,SUM(F39:F43)," ")
$0
=IF($B$8>4,F44-F45," ")
$0
=IF($B$8>4,F37+F46," ")
=IF($B$8>4,F37+F46," ")
$0
$0
$0
$0
$0
=IF($B$8>4,SUM(F51:F55)," ")
$0
=IF($B$8>4,F56+F57," ")
$0
$0
$0
$0
=IF($B$8>4,SUM(F59:F62)," ")
=IF($B$8>4,F58+F63," ")
=IF($B$8>4,F64-F48," ")

67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104

A
End-of-Year Stock Price
RATIO ANALYSIS
Current Ratio
Quick Ratio

B
$3.00

C
$5.00

D
$5.50

E
$0.00

F
$0.00

1.06
0.64

1.16
0.63

1.40
0.77

=IF($B$8>4,F37/F56," ")
=IF($B$8>4,(F37-F36)/F56," ")

6.90
24.96
11.72
3.06

5.39
35.30
11.74
2.80

5.20
33.88
12.59
2.93

=IF($B$8>4,F14/F36," ")
=IF($B$8>4,F35/(F13/360)," ")
=IF($B$8>4,F13/F46," ")
=IF($B$8>4,F13/F48," ")

0.78
0.37
3.70

0.73
0.25
3.07

0.57
0.05
7.20

=IF($B$8>4,F58/F48," ")
=IF($B$8>4,F57/F63," ")
=IF($B$8>4,F22/F23," ")

Gross Profit Margin


Operating Profit Margin
Net Profit Margin

33.33%
5.67%
3.47%

33.55%
5.74%
3.10%

38.82%
12.71%
10.06%

=IF($B$8>4,F15/F13," ")
=IF($B$8>4,F22/F13," ")
=IF($B$8>4,F26/F13," ")

Return on Total Assets (ROA)


Return on Equity (ROE)

10.61%
47.71%

8.68%
31.58%

29.43%
68.40%

=IF($B$8>4,F26/F48," ")
=IF($B$8>4,F26/F63," ")

$0.10

$0.10

$0.34

=IF($B$8>4,F28/F66," ")

Inventory Turnover
Average Collection Period
Fixed Asset Turnover
Total Asset Turnover
Debt Ratio
Debt-to-Equity
Times Interest Earned

Earnings Per Share


Price/Earnings Ratio
DUPONT ANALYSIS
Net Profit AT/Sales
Sales/Total Assets
ROA
Net Profit AT/Total Assets
Total Assets/Stockhldrs. Equity
ROE

STATEMENT OF CASH FLOWS


CASH FLOW FROM
105 OPERATING ACTIVITIES
106 Net Profit After Taxes
107 Depreciation
108 Decrease in Accts. Receiv.
109 Decrease in Inventories
110 Decrease in Other Assets
111 Increase in Accounts Pay.
112 Increase in Accruals
113 Increase in Taxes Payable
114 Increase in Other Cur. Lia.
115 Cash Flow from Oper. Act.
116
CASH FLOW FROM
117 INVESTMENT ACTIVITIES
118 Increase in Gross Fixed Assets
119 Cash Flow from Investments
120
CASH FLOW FROM FINANCING
121 ACTIVITIES
122 Increase in Notes Payable
123 Increase in Long-Term Debt
124 Changes in Stockholders' Equity
125 Preferred Dividends Paid
126 Common Dividends Paid (-)
Cash Flow from Financing
127 Activities
128
129 Net Incr. in Cash / Mark. Securities

29.41

52.08

16.08

3.47%
306.12%
10.61%
10.61%
449.54%
47.71%

3.10%
280.29%
8.68%
8.68%
363.82%
31.58%

10.06%
292.60%
29.43%
29.43%
232.40%
68.40%

1996

1997
$48
$11
($48)
($46)
$0
$10
$2
$0
$0
($23)

1998
$171
$12
($8)
($9)
$0
$14
$1
$0
$0
$181

($15)
($15)

($5)
($5)

$10
($2)
$0
$0
($5)

($60)
($25)
$0
$0

$3

($85)

($35)

$91

=IF(AND(F67>0,F89>0),F67/F89," ")

=IF($B$8>4,F26/F13," ")
=IF($B$8>4,F13/F48," ")
=IF($B$8>4,F94*F95," ")
=IF($B$8>4,F26/F48," ")
=IF($B$8>4,F48/F63," ")
=IF($B$8>4,F97*F98," ")