Brady Corporation Balance Sheets (000's/S) Common-size Common-base year Trend Trend 2014 2015 2016 2014 2015 2016 2014 2015 2016 Current Assets Cash 25 20 10 Receivables 1,712 3,412 6,454 Inventory 1,582 2,958 6,490 Total current assets 3,319 6,390 12,954 Fixed Assets Schedule One Brady Corporation Income Statements (000's/$) Land 590 590 590 Net plant, property & equipment 4,740 4,882 5,695 Total fixed assets 5,330 5,472 6,285 Common-size Common-base year Trend Trend Total Assets 8,649 11,862 19,239 2014 2015 2016 2014 2015 2016 2014 2015 2016 Revenue Cost of Goods Sold Gross Profit Operating Expenses Current liabilities Account payables 18,675 28,675 48,845 1,019 2,019 4,656 15,932 24,393 42,007 Short-term notes payables 300 1,300 2,500 2,743 4,282 6,838 Total current liabilities 1,319 3,319 7,156 Selling 1,251 1,851 2,734 Long-term liabilities 2,300 3,330 6,355 General & Administrative 1,090 1,590 2,192 Total Operating Expenses Operating Profit Interest Expense Earnings Before Taxes Taxes Earnings After Taxes 2,341 3,441 4,926 Total liabilities 3,619 6,649 13,511 402 841 1,912 210 510 1,059 shareholders' equity 192 331 853 Common stock 4,500 4,500 4,500 67 116 299 Retained earnings 218 433 987 125 215 554 Total equity 4,718 4,933 5,487 3 Step DuPont ROE Analysis Total liabilities & equity 8,649 11,862 19,239

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Complete the common-size and common-base year financial statements [Income Statement (IS) and Balance Sheet (BS)] or Brady Corp. Include spark lines to easily show the trends.  Write a brief analysis in the Excel worksheet of the main trends that you notice. 

  2. Perform the 3 step DuPont Return on Equity (ROE) analysis for Brady Corp. using cell references. Write a brief analysis from the DuPont analysis on Excel worksheet.  
Brady Corporation
Balance Sheets (000's/S)
Common-size
Common-base year
Trend
Trend
2014
2015
2016
2014
2015
2016
2014
2015
2016
Current Assets
Cash
25
20
10
Receivables
1,712
3,412
6,454
Inventory
1,582
2,958
6,490
Total current assets
3,319
6,390
12,954
Fixed Assets
Schedule One
Brady Corporation
Income Statements (000's/$)
Land
590
590
590
Net plant, property & equipment
4,740
4,882
5,695
Total fixed assets
5,330
5,472
6,285
Common-size
Common-base year
Trend
Trend
Total Assets
8,649
11,862
19,239
2014
2015
2016
2014
2015
2016
2014
2015
2016
Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Current liabilities
Account payables
18,675
28,675
48,845
1,019
2,019
4,656
15,932
24,393
42,007
Short-term notes payables
300
1,300
2,500
2,743
4,282
6,838
Total current liabilities
1,319
3,319
7,156
Selling
1,251
1,851
2,734
Long-term liabilities
2,300
3,330
6,355
General & Administrative
1,090
1,590
2,192
Total Operating Expenses
Operating Profit
Interest Expense
Earnings Before Taxes
Taxes
Earnings After Taxes
2,341
3,441
4,926
Total liabilities
3,619
6,649
13,511
402
841
1,912
210
510
1,059
shareholders' equity
192
331
853
Common stock
4,500
4,500
4,500
67
116
299
Retained earnings
218
433
987
125
215
554
Total equity
4,718
4,933
5,487
3 Step DuPont ROE Analysis
Total liabilities & equity
8,649
11,862
19,239
Transcribed Image Text:Brady Corporation Balance Sheets (000's/S) Common-size Common-base year Trend Trend 2014 2015 2016 2014 2015 2016 2014 2015 2016 Current Assets Cash 25 20 10 Receivables 1,712 3,412 6,454 Inventory 1,582 2,958 6,490 Total current assets 3,319 6,390 12,954 Fixed Assets Schedule One Brady Corporation Income Statements (000's/$) Land 590 590 590 Net plant, property & equipment 4,740 4,882 5,695 Total fixed assets 5,330 5,472 6,285 Common-size Common-base year Trend Trend Total Assets 8,649 11,862 19,239 2014 2015 2016 2014 2015 2016 2014 2015 2016 Revenue Cost of Goods Sold Gross Profit Operating Expenses Current liabilities Account payables 18,675 28,675 48,845 1,019 2,019 4,656 15,932 24,393 42,007 Short-term notes payables 300 1,300 2,500 2,743 4,282 6,838 Total current liabilities 1,319 3,319 7,156 Selling 1,251 1,851 2,734 Long-term liabilities 2,300 3,330 6,355 General & Administrative 1,090 1,590 2,192 Total Operating Expenses Operating Profit Interest Expense Earnings Before Taxes Taxes Earnings After Taxes 2,341 3,441 4,926 Total liabilities 3,619 6,649 13,511 402 841 1,912 210 510 1,059 shareholders' equity 192 331 853 Common stock 4,500 4,500 4,500 67 116 299 Retained earnings 218 433 987 125 215 554 Total equity 4,718 4,933 5,487 3 Step DuPont ROE Analysis Total liabilities & equity 8,649 11,862 19,239
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