1. You wish to start a firm that will manufacture Lawn Mowers. You have classified your firm as being in the Lawn Mower Manufacturing Business. You have obtained the Risk Management Associates (RMA) Industry Financial Statement Information on the following pages. Using the RMA industry financial information and your sales estimate of $2,000,000 per year, as we did in class, estimate the financial statements of your firm. Sample Industry Data Lawn Mower Manufacturing Historical Average Current Data Sorted by Sales Sales - 1M 1M-SM Current Data Sorted by Total Assets T.A. O-500 500-2M Data % % % % 5.5 6.5 4.5 7.3 5.4 35.1 28.7 25.8 30.1 28.4 25 33.3 29.4 30.1 36.5 0.3 0.1 0.3 0 0.1 Assets Cash and Equivalents Trade Receivables Inventory All Other Current Total Current Fixed Assets (Net) Intangibles (Net) All Other Non-Current Total 65.9 68.6 67.5 70.4 30.1 28.7 60 33.2 0.6 26.3 0.3 27.1 0.2 0.2 0.1 3.8 2.6 6.2 5.9 2.3 100 100 100 100 100 5.4 6.1 8.2 7.2 6.9 4.5 3.6 5.5 4.2 5.6 25.5 27.6 22.1 28.6 24.6 0.1 0.3 0.2 0.4 0.3 0.1 0.3 0.5 0.7 0.2 Liabilities Notes Payable-Short Term Current Mat. LTD Trade Payables Income Taxes payable All Other current Total Current Long Term Debt Deferred Taxes All Other Non-Current Net Worth Total Liab. & Net Worth 37.8 38.9 41.6 35.8 21.5 34.6 25.1 33.1 24.2 31.6 5.7 4.6 5.1 3.3 4.9 7.9 4.3 5.1 6.3 5.7 32.4 29.3 14.8 16.1 100 30.3 100 100 100 100 100 100 100 100 100 17.1 20.4 17.5 23.5 15.1 Income Data Net Sales Gross Profit Operating Expenses Operating Profit All Other Expenses Profit Before Taxes 11.5 22.3 14.5 7.8 14.5 18.3 2 8.9 3 5.2 0.2 0.1 0.1 0.1 0.1 1.8 8.8 7.7 2.9 5.1 Ratios Sales/Total Assets 2.4 2.1 3.2 2.7 2.9