Peter Karapanos and Laurence Larssen

S&S AIR, INC.

2014 Balance Sheet
Assets Liabilites
Current assets Current liabilities
Cash $ 456,436 Accounts payable
Accounts receivable 733,125 Notes payable
Inventory 1,073,180 Total current liablities
Total current assets $ 2,262,741
Long term debt
Fixed assets
Net plant and equipment $ 17,723,430 Shareholder Eq. and CS
Retained earnings
Total Equity
Total assets $ 19,986,171 Total liablities and equity
 Peter Karapanos and Laurence Larssen

Liabilites

payable $ 929,005
2,121,350
current liablities $ 3,050,355

$ 5,500,000

Eq. and CS $ 400,000

11,035,815
$ 11,435,815
es and equity $ 19,986,170
 Peter Karapanos and Laurence Larssen
S&S AIR, INC.
2014 Income Statement
Sales $ 40,259,230
Cost of goods sold 29,336,446
Other Expenses 5,105,100
Depreciation 1,804,220
EBIT $ 4,013,464
Interest 630,520
Taxable Income $ 3,382,944
Taxes (40%) 1,353,178
Net Income $ 2,029,766

Dividens $ 610,000
Added to retained earnings $ 1,419,766
 Peter Karapanos and Laurence Larssen
S&S AIR, INC.
Ratios
Current Ratio 0.742
Quick Ratio 0.390
Cash Ratio 0.150
Total Debt Ratio 0.428
Equity Mulitplier 1.748
Times Interest Earned Ratio 6.365
Cash Coverage Ratio 9.227
Inventory Turnover 27.336
Days Sales in Inventory 13.352
Recievable Turnover 54.915
Days Sales in Receivables 6.647
Total Asset Turnover 2.014
Profit Margin 5.04%
Return on Assets 10.16%
Return on Equity 17.75%

New Created Inventory Ratio In our new ratio, there is to

new cost of goods sold $ 20,000,000 much inventory to sell fast
new inventory $ 1,500,000 enough, so they need to deplete
the inventory.
New Inventory Ratio 13.333
 Peter Karapanos and Laurence Larssen

ere is to
sell fast
ed to deplete
 Peter Karapanos and Laurence Larssen

Question 1. When looking at the ratios and statements, Boeing is a little large of a company
to compare to. The sales and production of Boeing are too large to try and compare a small
company like S&S Air to. However, it is okay it is okay to dream big and aspire to be like
Boeing at some point in the companys career. Personally, I wouldnt use Boeing as an
aspirant company. These other companies like Bombardier, Embraer, Cirrus, and Cessna
Aircraft Company are more comparable to S&S Air because of their lower numbers.
Bombardier is still a stretch, but could work. The best companies to compare to would be
Embraer, Cirrus, and Cessna because the income statement shows numbers in the millions
rather than the billions like Bombardier and Boeing. Even though they are still seen as larger
companies, their numbers are more relatable because this goal is more ready achievable.
They are more of a match towards S&S because S&S has the ability to reach these
companies financial numbers in the future rather than that of Boeing.
 Peter Karapanos and Laurence Larssen
e large of a company
and compare a small
d aspire to be like
se Boeing as an
Cirrus, and Cessna
wer numbers.
mpare to would be
mbers in the millions
are still seen as larger
e ready achievable.
reach these
Question 2. When comparing the Ratios calculated by S&S Air and comparin
industry's ratios, they fell in line with the set ratios. There were a few ratios t
the industries such as: Inventory Turnover, Receivables Turnover, Total Debt
Equity Ratio. Inventory Turnover and Receivables Turnover were far above th
ratings while Total Debt Ratio and Debt-Equity were slightly below the indust
However, these numbers are relatively okay. These numbers show great profi
a lower debt number than those based in the standard industry. For all the o
company falls within the standard of other companies showing that the com
well and not falling short. If there was a ratio for inventory where it was inve
current liabilities, the number would be: $1,073,180/$3,050,355 = 0.352. Lo
the numbers from the other ratios, I believe that this ratio would most likely
standard but more on the low end because S&S Air is a smaller company wit
With only so much production going on, the number can be only be so high,
capable of being within the standard margins.
 Peter Karapanos and Laurence Larssen

by S&S Air and comparing them to the

There were a few ratios that weren't with
les Turnover, Total Debt Ratio, and Debt-
rnover were far above the industry
slightly below the industry ratings.
numbers show great profit turnover and
ard industry. For all the other ratios, the
es showing that the company is doing
entory where it was inventory divided by
/$3,050,355 = 0.352. Looking at most of
s ratio would most likely fall within the
s a smaller company with less inventory.
can be only be so high, but completely