Huffman Trucking Income Statement & Vertical Analysis

Cash Flows and Financial Statements at Sunset Boards, Inc. Income Statement 2013 2014 Net Sales $333,426 $406,427 COGS ($169,969) ($214,607) Gross Profit $163,457 $191,820 Expenses $33,425 $43,626 Depreciation ($47,980) ($54,230) EBIT $82,052 $93,964 Interest Paid ($10,442) ($11,954) Earnings Before Taxes $71,610 $82,010 Income Tax 20% ($14,322) ($16,402) NET INCOME $57,288 $65,608 Balance Sheet 2013 2014 Current Assets Cash $24,524 $26,056 Accounts receivable $17,378 $22,542 Inventory $36,570 $50,185 Total Current Assets $78,472 $98,783 Fixed Assets Net Fixed Assets $211,680 $264,021 Total Assets $290,152 $362,804 Current Liabilities Accounts Payable $43,344 $48,090 Note Payable $19,757 $21,571 Total Current Liabilities $63,101 $69,661

1) GENUINE MOTOR PRODUCTS Revised Pro forma Income Statement For 2007 Sales (1,000,000 units @ $30 per unit) Fixed costs Total variable costs (1,000,000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12,000,000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2,800,000 in depreciation $ 30,000,000 5,800,000 18,800,000 5,400,000 1,290,000 4,110,000 1,438,500 2,671,500 2,320,000 1.15

Table 1.2.2 Operating Statements for Years Ending December 31, 1988-1990, and for First Quarter 1991 (thousand of dollars)

BALANCE SHEET |Dec 1990 |Jan |Feb |Mar |Apr |May |June |July |Aug |Sept |Oct |Nov |Dec | |Cash |175 |556 |724 |175 |175 |175 |175 |175 |175 |175 |175 |175 |175 | |Accts receivable |2,628 |958 |234 |271 |270 |250 |250 |270 |1,603 |3,113 |3,580 |3,982 |3.063 | |Inventory |530 |948 |1,355 |1,749 |2,157 |2,564 |2,971 |3,365 |2,904 |2.314 |1,549 |697 |530 | |Net P/E |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 | |Total Assets |4,403 |3,533 |3,383 |3,265 |3,672 |4,059 |4,466

1.) Break-even ticket sales increased from 4533 in 2003, to 4998 in 2004 and 7491 in 2006. Break-even point in Sales Dollars has changed from $7,285 in 2003, to $7,617 in 2004 and $11,634 in 2006. (Table 1) The margin of safety has changed from $1,298 in 2003, to $485 in 2004, and a loss of $923 in 2006. (Table 2) There is a decrease from 2003 to 2006. Fixed cost per month attributed to stores relocation and subsequent renovations caused a decrease from 2003 to 2006. Other factors contributing to the 2003-2006 decrease are as follows: • 1% increase in Cost of Goods Sold (COGS) totaling $81,000 • Decrease in sales of $481,000 • Increase in salaries totaling $60,000 • Increase in miscellaneous expenses of

11 Revenues, Expenses, & Net Income ......................................................................................... 12 EBIT / EPS Analysis ................................................................................................................. 13 a II. Lowe‟s Past & Current Strategies ........................................................................................... 1

Consolidated Statements of Income (in thousands) 2003 2004 2005 Revenue Net sales Cost of goods sold Gross profit/(loss) Gross margin Operating expenses Sales and marketing Engineering and product development General and administrative Total operating expenses Operating income/loss Other income/expense Interest income/expense Other income/(expense) Income before provision for income taxes Income taxes Net income/(loss) Net margin 61,529 41,072 20,457 33.2% 64,063 43,155 20,908 32.6% 60,144 45,835 14,309 23.8%

In 2011, their cash flows from investing were -$19,008, and -$3,633 in 2010. Most of their investing is due to additions to property and equipment.

Revenue is one of the most important measures used by investors when assessing a company’s performance. CSX and Norfolk Southern both use GAAP when reporting revenue. CSX recognizes revenue by using “Free on Board” shipping, meaning that the the sale is considered complete when the carrier takes possession of the goods. Thus, the buyer is responsible for the transportation costs and liability of the goods. In contrast, Norfolk’s transportation revenue is recognized in proportion to its movement of shipment from the original location to its final destination. In comparing the profitability of the two companies, CSX’s sales tends to be higher due to the fact that revenue is recognized at a single occurrence.

d. Perform an extended Du Pont analysis for Joshua & White for 2008 and 2009.

Current assets: 2011 Cash and cash equivalents Short-term investments Accounts receivable Prepaid expenses and deposits Loan receivable (note 2) Derivative financial instrument - short term Restricted cash and cash equivalents (note 3) Other assets Capital assets (note 4) $ 13,397 4,130 12,325 17,091 4,290 1,352 52,585 11,808 – 264,350 $ 2010 10,420 10,772 1,739 75,992 – 1,544 100,467 113,040

10. A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the

The total asset is $424 million, total liability is $349 million. Ended Aug 28, 2016

Assets Liabilities and Owener`s EquityCurrent assets $2,170 Current liabilities $1350Net fixed assets $9,300 Long-term debt $3980 Shareholders` equity $6140Total assets $11470 Total liabilities and

Kaleb’s Karate Supply had a profit margin of 12 percent, sales of $21.8 million, and total assets of $9.3 million.