6 Global Manufacturing, Inc. INCOME STATEMENT 7 2019 2020 89 0 1 $70,911,420 $48,113,332 $13,785,239 $85,218,840 57,181,806 16,873,362 9,012,849 11,163,672 12 13 TABLE #1 14 Total sales Cost of goods sold Administrative expense Earnings before interest, taxes, depreciation & amortization (EBITDA) Depreciation Earnings before interest & taxes.(EBIT) Interest expense Earnings Before Taxes (EBT) Taxes Net income Dividends Additions to Retained Earnings 15 16 1,700,510 7,312,339 1,390,284 5,922,055 1,243,632 4,678,423 1,169,606 3,508,818 2,027,160 9,136,512 1,603,312 7,533,200 1,581,972 5,951,228 1,487,807 4,463,421 17 18 19 20 21 24 Global Manufacturing, Inc. BALANCE SHEET 25 2019 2020 26 27 28 29 30 $2,836,450 8,509,350 20,351,550 31,697,350 22,975,245 $54,672,595 $1,851,754 $10,262,510 $23,144,820 35,259,084 $27,826,540 $63,085,624 31 32 33 34 TABLE #2 35 ASSETS Cash Accounts receivable Inventory Total Current Assets Net Fixed Assets TOTAL ASSETS LIABILITIES & STOCKHOLDER'S EQUITY Accounts payable Notes payable Total current liabilities Long-term debt TOTAL LIABILITIES Common stock Retained earnings* TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES & STOCKHOLDER'S EQUITY 36 37 38 $5,758,070 7,961,031 13,719,101 12,359,868 26,078,969 2,040,000 26,553,626 28,593,626 $7,151,072 10,094,260 17,245,332 12,783,245 30,028,577 2,040,000 31,017,047 33,057,047 39 40 41 42 $54,672,595 $63,085,624 43 44 45 Global Manufacturing, Inc. ADDITIONAL INFORMATION 46 Information 2019 2020 47 48 49 50 Depreciation as a % of net fixed assets Short-term interest expense Long-term interest expense Income tax rate Dividend payout ratio TABLE #3 7.68% 6.72% 6.92% 21.00% 25.00% 8.82% 7.12% 6.92% 21.00% 25.00% 51 52 Fixed assets as a percent of total capacity. 84.00% 91.00% 53 54 End of year stock price Number of common shares outstanding $67.13 1,750,000 $69.21 1,750,000 55 PRO FORMA CORRECTIONS (calculation of key items) HELP: This problem is not in your textbook. See the CASE STUDY HELP files named " TUTORIAL FOR PREPARING A PRO FORMA FORECAST - WITH CORRECTIONS.pdf" to guide you in doing each of the calculations. Also be sure to review the "O8A-SAMPLE COMPANY PRO FORMA CORRECTIONS (calculation of key items).pdf" provided to help you setup your spreadsheet for these PRO FORMA calculations. 2 3 NOTE: Cells shaded in YELLOW are the cells you must provide the calculations. NOTE: Cells shaded in RED are the cells that will automatically fill-in for you. 4 FIRM'S VALUE BENCHMARK'S VALUE EXPECTED CORRECTIONS 5 6 INCOME STATEMENT 2021 Total sales estimate $0 = Auto Transfer from GROWTH RATE worksheet 7 % Cost of Goods Sold from 2020 COMMON SIZE 0.0% = Select the BETTER VALUE % Cost of Goods Sold from 2020 COMMON SIZE values 8 2021 Cost of goods sold (CORRECTED) (SEE INSTRUCTIONS IN TUTORIAL) 9 0.0% 70.1% 2021 Cost of goods sold(CORRECTED) $0 = 2021 Total sales estimate x BETTER VALUE % Cost of Goods Sold from 2020 COMMON SIZE % Administrative expense from 2020 COMMON SIZE 0.0% 9.6% 0.0% = Select BETTER VALUE % Administrative expense from 2020 COMMON SIZE values 10 2021 Administrative expense(CORRECTED) (SEE INSTRUCTIONS IN TUTORIAL) 11 2021 Administrative expense(CORRECTED) $0 = 2021 Total sales estimate x BETTER VALUE % Administrative expense from 2020 COMMON SIZE 12 BALANCE SHEET Cash Per Share (CPS) from 2020 RATIOS $0.00 $2.03 $0.00 = Select the BETTER VALUE Cash Per Share (CPS) from 2020 RATIOS values 13 2021 Cash(CORRECTED) (SEE INSTRUCTIONS IN TUTORIAL) 14 $0=# Common Shares Outstanding2020 x BETTER VALUE Cash Per Share (CPS) 2021 Cash (CORRECTED) 7.1 Receivables Turnover from 2020 RATIOS 0.0 0.0 = Select the BETTER VALUE Receivables Turnover from 2020 RATIOS values 15 2021 Accounts Receivable(CORRECTED) 16 (SEE INSTRUCTIONS IN TUTORIAL) Lockbox Reduction in Accounts Receivable $0 = Auto Transfer From LOCKBOX worksheet 2021 Accounts Receivable (CORRECTED) 17 $0 =(2021 Total sales estimate /BETTER VALUE Receivables Turnover from 2020 RATIOS) - LOCKBOX worksheet part "d" 18 Inventory Turnover from 2020 RATIOS 0.0 2.7 0.0%= Select the BETTER VALUE Inventory Turnover from 2020 RATIOS values 2021 BETTER Inventory $0 = 2021 Cost of Goods Sold / BETTER VALUE Inventory Turnover from 2020 RATIOS 19 2021 Inventory(CORRECTED) (SEE INSTRUCTIONS IN TUTORIAL) 20 2021 EOQ Inventory $0 = Auto Transfer From EOQ worksheet 21 2021 Inventory (CORRECTED) $0 Select the BETTER Inventory value from 2021 BETTER Inventory or 2021 EOQ Inventory