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 Mike Owjai Manufacturing
Income Statements
For the Years 2013 and 2014
2013
Sales 2422500
Cost of Goods 1621875
* Gross Profit $ 800,625
Depreciation 53250
Selling & Admin. Expense 626250
Lease Expense 48750
* Net Operating Income $ 72,375
Interest Expense 51000
Earnings Before Taxes 21375
Taxes $ 7,481
* Net Income $ 13,894

Notes:
Tax Rate 0.35
Shares 60000
Earnings per Share 0.2315625

Mike Owjai Manufacturing

Balance Sheet
For the Year Ended December 31, 2014
2013
Assets
Cash 30750
Marketable Securities 15750
Accounts Receivable 279000
Inventory 315000
* Total Current Assets $ 640,500
Gross Fixed Assets 1627500
Accumulated Depreciation 363750
* Net Plant & Equipment 1263750
* Total Assets $ 1,904,250

Liabilities & Owner's Equity

Accounts Payable 217500
Accrued Expenses 22500
* Total Current Liabilities $ 240,000
* Long-term Debt 795750
* Total Liabilities $ 1,035,750
Common Stock ($1.00 par) 60000
 Additional Paid-in-Capital 406500
Retained Earnings 402000
* Total Owner's Equity $ 868,500
* Total Liab. & Owner's Equity $ 1,904,250
 Required

2014 1 Expand columns to show all information

2625000 2 Bold numbers identified with an *
1704975 3 Format correctly, $'s and %'s
$ 920,025 4 Complete the I/s and B/s by filling in the ope
63000
652350
48750
$ 155,925
84000
71925
$ 25,174
$ 46,751

0.35
75000
0.62335

2014

39000
1826.25
315000
386250
$ 742,076
2010000
426750
1583250
$ 2,325,326

378750
26250
$ 405,000
878325
$ 1,283,325
75000
 518250
448751.25
$ 1,042,001
$ 2,325,326
show all information
fied with an *

d B/s by filling in the open cells

 Loblaw Manufacturing
Cash Budget
June 2015 to October 2015
April May June July
Sales 149,500 175,500 223,600 184,600
Collections:
Cash 25% 55,900 46,150
First Month 60% 105,300 134,160
Second Month 15% 22,425 26,325
Total Collections 183,625 206,635
Purchases 60% 134,160 110,760 94,380
Payments:
During Month 40% 43,418 36,997
Month After 60% 80,496 66,456
Total Payments 123,914 103,453
Collections 183,625 206,635
Disbursements:
Inventory Payments 123,914 103,453
Short-term Interest - 131
Other Payments 104,000 97,500
Total Disbursements 227,914 201,084
Beginning Cash Balance 30,000 25,000
Net Additions to Cash (44,289) 5,551
Unadjusted Cash Balance 30,000 (14,289) 30,551
Add: Current Borrowing - 39,289 (5,551)
Ending Cash Balance 30,000 25,000 25,000

Cumulative Borrowing - 39,289 33,738

Minimum Cash Balance 25,000
Discount for Paying in Same Month 2.00%
Annual Interest Rate 4.00%
Monthly Interest Rate 0.33%

Total Interest Cost 351

August September October November
157,300 120,900 98,800 105,300

39,325 30,225 24,700 Create a scenerio analysis to find the maximum b

110,760 94,380 72,540 for 4 different Minimum Cash Balances
33,540 27,690 23,595 25000
183,625 152,295 120,835 20000
72,540 59,280 63,180 15000
10000
28,436 23,238 24,767
56,628 43,524 35,568 Hint don't foeget your Maximum Borrowing Cell
85,064 66,762 60,335
183,625 152,295 120,835

85,064 66,762 60,335

112 88 19
91,000 65,000 58,500
176,176 131,849 118,854
25,000 25,000 25,000
7,449 20,446 1,981
32,449 45,446 26,981
(7,449) (20,446) (1,981)
25,000 25,000 25,000
Max Borrowing
26,289 5,843 3,862 109,022
nalysis to find the maximum borrowing
mum Cash Balances

ur Maximum Borrowing Cell

2009 149,500
2010 175,500
2011 223,600
2012 184,600
2013 157,300
2014 120,900
2015 98,800
2016 105,300
2017 96,850
2018 68,436
2019 40,741
Utilize the regression function and asscoiated formula
to forecast sales for 2017, 2018, and 2019
**Go to file-options-add-ins to load the analysis tool pak

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.70248696
R Square 0.49348792
Adjusted R Square 0.40906924
Standard Error 32813.0204
Observations 8

ANOVA
df SS MS F Significance F
Regression 1 6.29E+09 6294052917 5.84572 0.052019
Residual 6 6.46E+09 1076694306
Total 7 1.28E+10

CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%

Lower 95.0%
Upper 95.0%
Intercept 24788291.7 10189614 2.432701731 0.050975 -144796 49721379 -144796 49721379
X Variable 1 -12241.6667 5063.159 -2.41779228 0.052019 -24630.8 147.437 -24630.8 147.437
Upper 95.0%
 2009 2010 2011 2012 2013 2014 2015
149,500 175,500 223,600 184,600 157,300 120,900 98,800

250,000

200,000
f(x) = - 12241.6666666639x + 24788291.6666611

150,000
Value

100,000

50,000

-
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
 2016
105,300 Graph these numbers using a scatter plot
Place a trend line in the graph
Place the Trend Line Equation on the graph also
Lable the axis.

2016 2017
 Meyerson's Bakery
Projected Income Statement for Pie Line

Sales $75,000
Variable Costs 45,000
Fixed Costs 20,000
Earnings Before Interest and Taxes 10,000
Interest Expense 3,000 Must use Go
Earnings Before Taxes 7,000 1. Find the number of pies th
Taxes 2,450 sell to Break Even at $15.00 p
Net Income 4,550 2. Find the price per pie that
with 4000 pies being sold to b
Additional Data
Estimated Pie Sales in Units 5,000
Price per Pie $15
Variable Cost per Pie $9
Tax Rate 35%
Price per Pie to Break Even on Net Income $15
Number of Pies to break even on Net Income 3,833
 Must use Goal Seek
1. Find the number of pies that the bakery must
sell to Break Even at $15.00 per pie
2. Find the price per pie that the bakery must charge
with 4000 pies being sold to break even.
 Tri-State Land Services
Financial Statements 2014
2014 2013
Sales 2625000 2422500
Cost of Goods 1704975 1621875
Gross Profit 920025 800625
Depreciation 63000 53250
Selling & Admin. Expense 652350 626250
Lease Expense 48750 48750
Net Operating Income 155925 72375
Interest Expense 84000 51000
Earnings Before Taxes 71925 21375
Taxes 25,174 7,481
Net Income 46,751 13,894

Notes:
Tax Rate 0.35 0.35
Shares 75000 60000
Earnings per Share 0.62335 0.2315625

Mike Owjai Manufacturing

Balance Sheet
For the Year Ended December 31, 2014
2014 2013
Assets
Cash 39000 30750
Marketable Securities 1826.25 15750
Accounts Receivable 315000 279000
Inventory 386250 315000
Total Current Assets 742,076 640500
Gross Fixed Assets 2010000 1627500
Accumulated Depreciation 426750 363750
Net Plant & Equipment 1583250 1263750
Total Assets 2,325,326 1,904,250

Liabilities & Owner's Equity

Accounts Payable 378750 217500
Accrued Expenses 26250 22500
Total Current Liabilities 405000 240000
Long-term Debt 878325 795750
Total Liabilities 1283325 1035750
Common Stock ($1.00 par) 75000 60000
Additional Paid-in-Capital 518250 406500
Retained Earnings 448751.25 402000
Total Owner's Equity 1042001.25 868500
Total Liab. & Owner's Equity 2325326.25 1904250
 Ratio 2014 2013
Current Ratio 1.83 2.67
Inventory Turnover Ratio 4.41 5.15
Return on equity 4.49% 1.60%
Total Debt Ratio(to assets) 55.19% 54.39%
gross profit margin 35.05% 33.05%
Operating profit margin 5.94% 2.99%
Sales 60000
Variable Costs 36000
Fixed Costs 20000
Earnings Before Interest and Taxes 4000 Leverage calculations
Interest Expense 3000 Must use point method
Earnings Before Taxes 1000
Taxes 350
Net Income 650

Additional Data
Estimated Pie Sales in Units 4000
Price per Pie 15
Variable Cost per Pie 9
Tax Rate 0.35

Degree of Operating Leverage 6.00

Degree of Financial Leverage 4.00
Degree of Combined Leverage 10.00
calculations
point method