Exercise 12-83
Dupont Analysis
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in...
Exercise 12-83
Dupont Analysis
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in
thousands except per share amounts)
2019
2018
2017
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and
administrative expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and
nonrecurring items
2,617
0
0
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of
investments
0
9,117
0
Income before...
Exercise 12-81
Profitability Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in...
Exercise 12-81
Profitability Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in
thousands except per share amounts)
2019
2018
2017
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and
administrative expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and
nonrecurring items
2,617
0
0
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of
investments
0
9,117
0
Income before...
Exercise 12-82
Stockholder Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in...
Exercise 12-82
Stockholder Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in
thousands except per share amounts)
2019
2018
2017
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and
administrative expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and
nonrecurring items
2,617
0
0
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of
investments
0
9,117
0
Income before...
Exercise 12-82
Stockholder Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in...
Exercise 12-82
Stockholder Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in
thousands except per share amounts)
2019
2018
2017
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and
administrative expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and
nonrecurring items
2,617
0
0
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of
investments
0
9,117
0
Income before...
Under Armour Inc.
Consolidated Statement
of Income
Dec. 31,
2015
Net Revenues
3,963,313
Cost of goods...
Under Armour Inc.
Consolidated Statement
of Income
Dec. 31,
2015
Net Revenues
3,963,313
Cost of goods sold
2,057,766
Gross profit
1,905,547
Selling, general and
administrative expenses
1,497,000
Income from operations
408,547
Interest expense, net
-14,628
Other expense, net
-7,234
Income before income taxes
386,685
Provision for income taxes
154,112
Net income
232,573
Under Armour Inc.
Consolidated Balance
Sheet
Dec. 31,
2015
Dec. 31,
2014
Assets
Cash and cash equivalents
129,852
593,175
Accounts receivable, net
433,638
279,835
Inventories
783,031
536,714
Prepaid...
Use the table for the question(s) below.
a. When using the book value of equity, the...
Use the table for the question(s) below.
a. When using the book value of equity, the debt to equity ratio
for Luther in 2018 is closest to:
b. If in 2019 Luther has 10.2 million shares outstanding and
these shares are trading at $16 per share, then using the market
value of equity, the debt to equity ratio for Luther in 2019 is
closest to:
c. Luther's current ratio for 2019 is closest to:
d. Luther's quick ratio for 2019...
2) Compute the EBIT margin and its components – the
gross profit margin and selling, general,...
2) Compute the EBIT margin and its components – the
gross profit margin and selling, general, and administrative
expenses to revenue in 2018 and 2019. What caused the change in
EBIT margin? [You do not have to use the average method – i.e. you
can use year-end numbers in computing the ratios.]
ATC Company
Balance Sheet on December31 ($ millions)
2018
2019
Inventory
20
28
Accounts Receivable
36
26
Other
29
36
Cash
410
473
Total Current Assets
495
562...
Sales
1,067,500
Cost of goods sold
1,392,500
Selling, general and administrative
145,000
Earnings before interest and...
Sales
1,067,500
Cost of goods sold
1,392,500
Selling, general and administrative
145,000
Earnings before interest and taxes (EBIT)
70,000
Federal and state income taxes (40%)
18,200
Net income
27,300
HH Company
Balance Sheet as of December 31, 20XX
Assets
80,500
Accounts Payable
132,000
Accounts Receivable
334,500
Current portion of debt
84,000
Inventories
240,000
Other current liabilities
114,000
Total current assets
655,000
Total current liabilities
330,000
Net fixed assets
292,500
Long-term debt
256,500
Total assets
947,500
Total liabilities
586,500
Common equity...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00
$48,120.00
Depreciation
$16,000.00
$19,200.00
Administrative Costs
$9,000.00
$10,800.00
EBIT
$15,000.00
$18,120.00
Interest
$4,000.00
$4,000.00
Pre-tax income
$11,000.00
$14,120.00
Taxes
$4,400.00
$5,648.00
Net Income
$6,600.00
$8,472.00
Dividends
$0.00
$5,083.20
Addition to Retained Earnings
$6,600.00
$3,388.80
BALANCE SHEET AS OF 12/31/2017:
ASSETS
2016
2017
Cash
$5,000.00
$6,000.00
Inventory
$15,000.00
$18,000.00
Accounts Receivable
$15,000.00
$18,045.00
Current Assets
$35,000.00
$42,045.00
Net PPE
$80,000.00
$92,000.00
Total Assets (TA)
$115,000.00...