Income Statement (in Million) Current year NY @ 6% NY @ 10%

sales $3,000 $3,180 $3,300

Operating cost (including depreciation) 2,800 $2,862 $2,970
Earnings before interest and tax (EBIT) $200 $318 $330
Less Interest expense 85 $37.23 $38.64
Earning before tax (EBT) $115 $280.77 $291.36
Taxes 46 $112.31 $116.55
Net income $69 $168.46 $174.82
Dividends 20 $42.12 $43.70
Addition to retained earning $49 $126.35 $131.11

Balance Sheet (in Million) Current year NY @ 6% NY @ 10%

Asset
Cash $50 $53 $55
Accounts receivables 350 $304.64 $316.14
Inventories 600 $530.11 $550.11
Fixed assets 1,000 1060 1100
Total Assets $2,000 $1,948 $2,021

Liabilities and Equity

Payables + Accruals $200 $212 $220
Short-term bank loans 100 $43.80 $45.46
Total current liabilities $300 $255.80 $265.46
Long-term bonds 750 $328.52 $340.92
Total liabilities $1,050 $584.33 $606.38
Common stock 150 $437.08 $483.76
Reserves & Surplus 800 $926.35 $931.11
Total common equity $950 $1,363.43 $1,414.88
Total liabilities and equity $2,000 $1,948 $2,021

EPS $ 1.38 $ 2.70 $ 2.71

Market Price $ 23.05 $ 45.05 $ 45.28
NY @ 12% Selected Ratios: ABC Plumbing, INC. and Its Industry
$3,360 Current Year Next Year
$3,024 Operating Costs/Sales 93.33% 90.00%
$336 Receivables/Sales 11.67% 9.58%
$39.34 Inventories/Sales 20.00% 16.67%
$296.66 Liability/Assets 35.00% 30.00%
$118.66 Payout ratio 28.99% 25.00%
$178.00
$44.50 Growth 6% 10%
$133.50

NY @ 12%

$56
$321.89
$560.11
1120
$2,058

$224
$46.28
$270.28
$347.12
$617.40
$507.10
$933.50
$1,440.60
$2,058

$ 2.72
$ 45.40
Industry
88.50%
8.88%
9.12%
25.00%
22.00%

12%
Balance Sheet (in Million) Current year NY @ 6% NY @ 10% NY @ 12%
Total Liability $1,050 $584 $606 $617
Interest Bearing $850 $372 $386 $393
Short Term $100 $43.80 $45.46 $46.28
Long Term $750 $328.52 $340.92 $347.12
Non-Interest Bearing $200 $212 $220 $224

Particulars Current year NY @ 6% NY @ 10% NY @ 12%

Earnings $69 $168.46 $174.82 $178.00
No. of Shares 50 62.45 64.48 65.49
EPS $1.38 $2.70 $2.71 $2.72
Market Price 23.05 $45.05 $45.28 $45.40
PE Ratio 16.7 16.70 16.70 16.70
Common Stock 150 $437.08 $483.76 $507.10
Follow on Public Offer $287.08 $333.76 $357.10
No. of additional Shares 12.45 14.48 15.49