Blue Sky Inc.
Income Statement
For the Year Ended Dec 31, 2017 (000's)
2017 2016
Sales 7,550.00 6,150.00
Cost of Good Sold 5,750.00 4,550.00
Gross Profit 1,800.00 1,600.00
Selling and G&A Expenses 820.00 730.00
Depreciation Expenses 120.00 100.00
Fixed Expenses 200.00 200.00
Lease Expense 150.00 150.00
EBIT 510.00 420.00
Interest Expenses 350.00 300.00
Earning Before Taxes 160.00 120.00
Taxes 64.00 48.00
Net Income 96.00 72.00
Notes:
Tax Rate 40.00%
2) Using the data from the previous problem:
2018
8,500.00
5,750.00
2,750.00
923.81
225.17
135.10
150.00
1,315.92
350.00
965.92
386.37
579.55
Blue Sky Inc.
Common Size Income Statement
For the Year Ended Dec 31, 2017 ($ in 000's)
2017 2016
Sales 100.00% 100.00%
Cost of Good Sold 76.16% 73.98%
Gross Profit 23.84% 26.02%
Selling and G&A Expenses 10.86% 11.87%
Depreciation Expenses 1.59% 1.63%
Fixed Expenses 2.65% 3.25%
Lease Expense 1.99% 2.44%
EBIT 6.75% 6.83%
Interest Expenses 4.64% 4.88%
Earning Before Taxes 2.12% 1.95%
Taxes 0.85% 0.78%
Net Income 1.27% 1.17%
Blue Sky Inc.
Balance Sheet
As of Dec 31, 2017 (000's)
2017 2016
Assets
Cash 108.00 50.00
Marketable Securites 150.00 100.00
Account Receivable 450.00 350.00
Inventory 1,250.00 850.00
Prepaid Expenses 120.00 40.00
Total Current Assets 2,078.00 1,390.00
Plant & Equipment 5,350.00 4,800.00
Accumulated Equipment 410.00 290.00
Net Fixed Assets 4,940.00 4,510.00
Long-term Investment 450.00 360.00
Total Assets 7,468.00 6,260.00
Liabilities and Owner's Equity
Accounts Payable 420.00 380.00
Notes Payable 150.00 100.00
Accrued Expenses 150.00 100.00
Other Current Liabilities 200.00 180.00
Total Current Liabilities 920.00 760.00
Long Term Debt 2,900.00 2,500.00
Total Liabilities 3,820.00 3,260.00
Common Stock 2,500.00 2,000.00
Additional Paid-in-Capital 600.00 500.00
Retained Earnings 548.00 500.00
Total Shareholder's Equity 3,648.00 3,000.00
Total Liabilities and Owner's Equity 7,468.00 6,260.00
Blue Sky Inc.
Common Size Balance Sheet
As of Dec 31, 2017 (000's)
Assets 2017 2016
Cash 1.45% 0.80%
Marketable Securites 2.01% 1.60%
Account Receivable 6.03% 5.59%
Inventory 16.74% 13.58%
Prepaid Expenses 1.61% 0.64%
Total Current Assets 27.83% 22.20%
Plant & Equipment 71.64% 76.68%
Accumulated Equipment 5.49% 4.63%
Net Fixed Assets 66.15% 72.04%
Long-term Investment 6.03% 5.75%
Total Assets 100.00% 100.00%
Liabilities and Owner's Equity
Accounts Payable 5.62% 6.07%
Notes Payable 2.01% 1.60%
Accrued Expenses 2.01% 1.60%
Other Current Liabilities 2.68% 2.88%
Total Current Liabilities 12.32% 12.14%
Long Term Debt 38.83% 39.94%
Total Liabilities 51.15% 52.08%
Common Stock 33.48% 31.95%
Additional Paid-in-Capital 8.03% 7.99%
Retained Earnings 7.34% 7.99%
Total Shareholder's Equity 48.85% 47.92%
Total Liabilities and Owner's Equity 100.00% 100.00%
Blue Sky Inc.
Income Statement
For the Year Ended Dec 31, 2017 (000's)
Cash Flow from Operations
Net Income 96.00
Depreciation Expense 120.00
Change in Marketable Securities -50.00
Change in Accounts Receivable -100.00
Change in Inventories -400.00
Change in Prepaid Expense -80.00
Change in Accounts Payable 40.00
Change in Accrued Expenses 50.00
Change in Other Current Liabilities 20.00
Total Cash Flows from Operations -304.00
Cash Flow from Investing
Change in Plant & Equipment -550.00
Change in Long-term Investment -90.00
Total Cash Flows from Investing -640.00
Cash Flow from Financing
Change in Short-term Notes Payable 50.00
Change in Long-term Debt 400.00
Change in Common Stock 500.00
Change in Paid-in-Capital 100.00
Cash Dividend Paid to Shareholders -48.00
Total Cash Flows from Financing 1,002.00
Net Change in Cash Balance 58.00
Square Corp.
Income Statement
For the Year Ended Dec. 31, 2017 ($ in 000's)
2017 2016
Sales 7,250,000 6,750,000 7,250.00
Cost of Goods Sold 5,400,000 5,330,000 5,400.00
Gross Profit 1,850,000 1,420,000 1,850.00
Selling and G&A Expenses 965,000 632,000 965.00
Depreciation 550,000 550,000 550.00
EBIT 335,000 238,000 335.00
Interest Expense 130,000 110,000 130.00
Earnings Before Taxes 205,000 128,000 205.00
Taxes -71,750 -48,900 -71.75
Net Income 133,250 79,100 133.25
Notes:
Tax Rate -0.35 -0.38
Shares Outstanding 75,000 65,000
Earnings per Share 1.78 1.22
Dividends per Share 1.07 0.73
Addition to RE per Share 0.71 0.49
Dividend Payout Ratio 60%
6,750.00
5,330.00
1,420.00
632.00
550.00
238.00
110.00
128.00
-48.90
79.10
Square Corp.
Common Size Income Statement
For the Year Ended Dec 31, 2017 ($ in 000's)
2017 2016
Sales 100.00% 100.00%
Cost of Goods Sold 74.48% 78.96%
Gross Profit 25.52% 21.04%
Selling and G&A Expenses 13.31% 9.36%
Depreciation 7.59% 8.15%
EBIT 4.62% 3.53%
Interest Expense 1.79% 1.63%
Earnings Before Taxes 2.83% 1.90%
Taxes -0.99% -0.72%
Net Income 1.84% 1.17%
Notes:
Tax Rate 40%
Square Corp.
Balance Sheet
As of Dec. 31, 2017 ($ in 000's)
Assets 2017 2016
Cash 149,970 100,000
Accounts Receivable 370,000 347,000
Inventory 870,000 515,000
Total Current Assets 1,389,970 962,000
Plant & Equipment 6,570,000 5,010,000
Accumulated Depreciation 1,930,000 1,380,000
Net Fixed Assets 4,640,000 3,630,000
Total Assets 6,029,970 4,592,000
Liabilities and Owners' Equity
Accounts Payable 420,000 321,440
Notes Payable 166,625 22,960
Total Current Liabilities 586,625 344,400
Long-term Debt 1,350,000 918,400
Total Liabilities 1,936,625 1,262,800
Common Stock 2,520,000 2,043,440
Additional Paid-in-Capital 772,000 551,040
Retained Earnings 734,720 734,720
Total Shareholder's Equity 4,026,720 3,329,200
Total Liab. and Owners' Equity 5,963,345 4,592,000
Square Corp.
Income Statement
For the Year Ended Dec 31, 2017 (000's)
Cash Flow from Operations
Net Income 133,250
Depreciation Expense 550,000
Change in Accounts Receivables -23,000
Change in Inventories -355,000
Change in Accounts Payable 98,560
Total Cash Flows from Operations 403,810
Cash Flow from Investing
Change in Plant & Equipment -1,560,000
Total Cash Flows from Investing -1,560,000
Cash Flow from Financing
Change in Notes Payable 143,665
Change in Long-term Debt 431,600
Change in Common Stock 476,560
Change in Paid-in-Capital 220,960
Cash Dividends Paid to Shareholders 0
Total Cash Flows from Financing 1,272,785
Net Change in Cash Balance 116,595