A B C D E F

1 Data
2 2009 2010 2011
3 Year-end common stock price $ 8.50 $ 6.00 $ 12.17
4 Year-end shares outstanding $ 100,000.00 $ 100,000.00 $ 250,000.00
5 Tax rate 40% 40% 40%
6 Lease payments $ 40,000.00 $ 40,000.00 $ 40,000.00
7
8 Balance Sheets
9
10
11 Assets 2009 2010 2011
12 Cash and equivalents $ 9,000.00 $ 7,282.00 $ 14,000.00
13 Short-term investments $ 48,600.00 $ 20,000.00 $ 71,632.00
14 Accounts receivable $ 351,200.00 $ 632,160.00 $ 878,000.00
15 Inventories $ 715,200.00 $ 1,287,360.00 $ 1,716,480.00
16 Total current assets $ 1,124,000.00 $ 1,946,802.00 $ 2,680,112.00
17 Gross Fixed Assets $ 491,000.00 $ 1,202,950.00 $ 1,220,000.00
18 Less Accumulated Dep. $ 146,200.00 $ 263,160.00 $ 383,160.00
19 Net Fixed Assets $ 344,800.00 $ 939,790.00 $ 836,840.00
20 Total Assets $ 1,468,800.00 $ 2,886,592.00 $ 3,516,952.00
21
22 Liabilities and equity
23 Accounts payable $ 145,600.00 $ 324,000.00 $ 359,800.00
24 Notes payable $ 200,000.00 $ 720,000.00 $ 300,000.00
25 Accruals $ 136,000.00 $ 284,960.00 $ 380,000.00
26 Total current liabilities $ 481,600.00 $ 1,328,960.00 $ 1,039,800.00
27 Long-term bonds $ 323,432.00 $ 1,000,000.00 $ 500,000.00
28 Total liabilities $ 805,032.00 $ 2,328,960.00 $ 1,539,800.00
29 Common stock (100,000 shares) $ 460,000.00 $ 460,000.00 $ 1,680,936.00
30 Retained earnings $ 203,768.00 $ 97,632.00 $ 296,216.00
31 Total common equity $ 663,768.00 $ 557,632.00 $ 1,977,152.00
32 Total liabilities and equity $ 1,468,800.00 $ 2,886,592.00 $ 3,516,952.00
33
34 Income Statements
35
36 2009 2010 2011
37 Net sales $ 3,432,000.00 $ 5,834,400.00 $ 7,035,600.00
38 Costs of Goods Sold $ 2,864,000.00 $ 4,980,000.00 $ 5,800,000.00
39 Other Expenses $ 340,000.00 $ 720,000.00 $ 612,960.00
40 Depreciation $ 18,900.00 $ 116,960.00 $ 120,000.00
41 Total Operating Cost $ 3,222,900.00 $ 5,816,960.00 $ 6,532,960.00
42 Earnings before interest and taxes (EBIT) $ 209,100.00 $ 17,440.00 $ 502,640.00
43 Less interest $ 62,500.00 $ 176,000.00 $ 80,000.00
44 Earnings before taxes (EBT) $ 146,600.00 $ (158,560.00) $ 422,640.00
45 Taxes (40%) $ 58,640.00 $ (63,424.00) $ 169,056.00
46 Net Income before preferred dividends $ 87,960.00 $ (95,136.00) $ 253,584.00
47 EPS $ 0.88 $ (0.95) $ 1.01
48 DPS $ 0.22 $ 0.11 $ 0.22
49 Book Value Per Share $ 6.64 $ 5.58 $ 7.91
50
51
52 Ratios Solution
53
54 Industry
55 2009 2010 2011 Average
56 Liquidity ratios
57 Current Ratio 2.33 1.46 2.58 2.70
58 Quick Ratio 0.85 0.50 0.93 1.00
59
60
61 Industry
62 Asset Management ratios 2009 2010 2011 Average
63 Inventory Turnover 4.80 4.53 4.10 6.10
64 Days Sales Outstanding 37.35 39.55 45.55 32.00
65 Fixed Asset Turnover 9.95 6.21 8.41 7.00
66 Total Asset Turnover 2.34 2.02 2.00 2.50
67
68 Industry
69 Debt Management ratios 2009 2010 2011 Average
70 Debt Ratio 55% 81% 44% 50%
71 Times Interest Earned 3.35 0.10 6.28 6.20
72 EBITDA Coverage Ratio 2.61 0.81 5.52 8.00
73
74 Industry
75 Profitability ratios 2009 2010 2011 Average
76 Net Profit Margin 3% -2% 4% 4%
77 Operating Margin 6% 0% 7% 7%
78 Gross Profit Margin 17% 15% 18% 16%
79 Basic Earning Power 14% 1% 14% 18%
80 Return on Assets 6% -3% 7% 9%
81 Return on Equity 13% -17% 13% 18%
82
83 Industry
84 Market Value ratios 2009 2010 2011 Average
85 Price-to Earnings Ratio 9.66 -6.31 12.00 14.20
86 Price-to-Cash Flow Ratio 7.95 27.49 8.14 7.60
87 Market-to-Book Ratio 1.28 1.08 1.54 2.90
88 Book Value Per Share 6.64 5.58 7.91 na
89
90
91 Du Pont Analysis ROE Profit margin Asset Trunover Equity Multiplier
92 Computron 2009 13.3% 2.6% 2.3 2.21
93 Computron 2010 -17.1% -1.6% 2.0 5.18
94 Computron 2011 12.8% 3.6% 2.0 1.78
95 Industry Average 18.00% 3.6% 2.5 2.00
Common Size Statements

Balance Sheets 2009 2010 2011 Industry

Assets
Cash and equivalents 0.6% 0.3% 0.4% 0.3%
Short-term investments 3.3% 0.7% 2.0% 0.3%
Accounts receivable 23.9% 21.9% 25.0% 22.4%
Inventories 48.7% 44.6% 48.8% 41.2%
Total Current Assets 76.5% 67.4% 76.2% 64.1%
Net Fixed Assets 23.5% 32.6% 23.8% 35.9%
Total Assets 100.0% 100.0% 100.0% 100.0%

Liabilities and equity

Accounts payable 9.9% 11.2% 10.2% 11.9%
Notes payable 13.6% 24.9% 8.5% 2.4%
Accruals 9.3% 9.9% 10.8% 9.5%
Total current liabilities 32.8% 46.0% 29.6% 23.7%
Long-term bonds 22.0% 34.6% 14.2% 26.3%
Total common equity 45.2% 19.3% 56.2% 50.0%
Total liabilities and equity 100.0% 100.0% 100.0% 100.0%