5 Revenue 7 Common Size 9 Purchases Freight in Labour Total cost of sales Salaries Commissions Travelling Advertising Leasing Depreciation/amortization 19 Misc charges, 20 Total Operating Expenses, 21 Operating Profit (EBIT) 22 23 Less Interest Expense 24 Earnings Before Taxes (EBT) Less income tax expense 27 Profit for the year (EAT) Cost of sales PPRINE: 10 11 Gross profit 12 Operating Expenses 13 14 15 10 17 18 B 2007 1.235 371 31 375 m 63% 456 120 33 12 6 20 9 20 20 236 3 C 0 E 0 Spike's Skatewear MFG Comparative Income Statements 2008 2009 2010 1,259 Fill in the Start Sheet Fill in the Start Sheet 504 40% 615 050 4% 44 72 29% 533 923 73% 1.192 336 27% #VALUE! 10% 155 2% 1% 16 156 10 2% 1% 1% 26 17% 291 9% #VALUE! 1% 14 9% #VALUET : #VALUE 7% #VALUE! 233 47 186 30% 30% 37% 10% 3% 2% 18% 19% 0% 19% 15% Hi841 130 30 9 220 116 109 28 91 603 1,525 #VALUE! 197 421 #VALUE! 24 #VALUE! #VALUEI #VALUE! S [] N K21 Common Size B 2007 C Spke's Skatewear Mig Comparative Balance Sheets 2008 31% 29% 33% 39% 1% 1% 10 25 1% 340 72% 168 31% 26% 30 6% 5% 3 2% 2% 109 35% 20% 535 100% 100% 94 18% 19% 40 7% 5% 2 016 0% 136 25% 24% 182 113 21% 17% 106 249 47% 42% 290 100 16% 100 106 35% 43% #VALUE 236 54% 50% #VALUE! 635 100% 100% #VALUE! Assets Current assets Inventories Trade receivables Prepaid expenses 10 Cash 11 Total current assets 12 Long-term assets 13 Land and Building 14 Equipment 15 Accumulated depreciation/amortization 16 Total Long-term assets 17 Total assets 19 Liabilities 20 Current liabilities 21 Trade and other payables Totes payable Current Portion of LTO 24 Total current liabilities 25 Total long-term debts 27 Total liabilities Share capital Retained eamings 30 31 Total owners' equity 22 Total equity and liabilities Start Spikes income S Trady 13 To Accessit Investigate 154 179 3 196 251 .. 9 460 160 30 **** ** *.83 ***** 100 Spike's Balance F 2009 235 345 4 34 618 100 30 27 171 789 144 35 31 D Spike's Ratios 0 H 2010 *** ***86 201 288 208 229 827 173 100 128 326 100 VALUE #VALUE! #VALUE Income K& Balance K&K Ratios Styles 0 CH 28 v: X fx B C D E Current Assets Current Liabilities Current Assets-Inventory Current Liabilities Net Sales-COS Net Sales EAT Net Sales Total Debt Shareholder's Equity EAT Total Assets EAT Shareholder's Equity EBIT Interest EBIT. Current LTD + Leases Interest Current LTD+ Leases + 00 Current Ratio Quick Ratio Gross Margin Profit Margin Debt to Equity Return on Assets Return on Equity Interest Coverage Debt Coverage LL F G 2009 H 2010 A1 6 8 9 10 11 12 13 14 15 16 17 Undo 18 19 20 21 23 X Arial BIU- fx Clipboard Service Sales Less: Cost of Sales Gross Profic: Operating expenses Office Salaries Leases Utilities Insurance Depreciation Total Operating Expenses Operating profit (EBIT) Interest expense Earnings before income tas (EBT) Income tax expense Earnings After Taxes *Purchases of Inventory & Freight In 5 Font 10 AA A- B Kim's Book Store Income Statement For the period ended 31-Dec-11 $90,000 $20,000 $20,000 $ 3,000 $ 2,000 $350,000 $149,000 $ 201,000 $135,000 $ 66,000 $ 30,000 $ 36,000 $ 7.200 $ 28,800 D Alignment 29 F General $ % -28 Number S 5 E F Kelly's Book Store Income Statement For the period ended 31-Dec-11 $770,000 $190,000 $213,000 $ 21,000 $ 12,000 $3,500,000 $1,450,000 $2,050,000 $1,206,000 S $44,000 S $0,000 $764,000 $ 152,800 $ 611.200 G Conditions Format Cell Tiamatting Styles Styles H 1 t Delete Format- Cells 28 Sort & Fin Fiter Sell Eating M A1 EX fx B C Kim's Book Store Balance Sheet As At December 31, 2011 8,000 1,000 6,000 2.400 17.400 49,300 2.000 47.300 47.300 64,700 9,000 1,100 19.500 29,600 100 35.000 64.700 1 2 3 4 Assets 5 Current Assets: Cash 7 Accounts receivable (net) 8 Inventory 9 Prepaid expenses 10 Total Current Assets 11 Long-Term Assesta: 12 Display Shelving Etc 13 Less Accumulated Depreciation 14 Net plant and equipment 15 Total Long-Term Assets: 16 Total assets: 17 18 Liabilities 19 Trade Payables 3 20 Current Portion of LTD 21 Long-term Loan 22 Total Liabilities: 23 Owner's Equity 24 Common Shares 25 Retained Earnings 26 Total Owner's Equity and Liab $ D Kelly's Book Store Balance Sheet As At December 31, 2011 50,000 4,000 200,000 5,000 265,000 560,000 77,000 483.000 483.000 745.000 93,000 5,000 90,000 188,000 10,000 550.000 748.000 $ $ 0 H 12345TORIES 6 10 11 13 14 15 16 17 18 28588722288 19 20 21 23 Current Ratio Quick Ratio Gross Margin Proft Margin Debt to Equity Return on Assets Return on Equity Interest Coverage Debt Coverage D F Current Assets Current Liabilities Current Assets-Inventory Current Liabilities Net Sales-COS Net Sales Net Profit Net Sales Total Debt Shareholder's Equity Net Proft Total Assets Net Profit Shareholder's Equity EBIT Interest EBIT Current LTD-Leases Interest - Current LTD Leas65 F G Kini's H Kelly's M Using the common size statements: 1) Explain Difference in EAT Using the Ratios 2) Explain which company is in better financial condition When ans must be s Saying se lower" is m about making putting the i we can com