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 NOTE: Cells shaded in YELLOW are the cells you must provide the calculations or analysis. 4 (Do not include the percent sign (%) and round your answer to ONE decimal places. (e.g., 12.3)) 5 Global Manufacturing, Inc. 6 2019 COMMON SIZE STATEMENT CALCULATIONS AND ANALYSIS 7 Global Manufacturing BENCHMARK FIRM LINE BY LINE ANALYSIS OF 2019 INCOME STATEMENT COMPARED TO THE BENCHMARK FIRM (BETTER, SAME AS, WORSE than the Benchmark firm) 8 9 2019 COMMON SIZE INCOME STATEMENT 2019 2019 0.0% 10 Total sales 100.0% 11 Cost of goods sold 0.0% 69.2% 0.0% 9.6% 12 Administrative expense Earnings before interest, taxes, depreciation & 13 amortization (EBITDA) 0.0% 21.2% 14 Depreciation 0.0% 2.2% 15 Earnings before interest & taxes.(EBIT) 0.0% 19.0% 16 Interest expense 0.0% 2.2% 17 Earnings Before Taxes (EBT) 0.0% 16.8% 18 Taxes 0.0% 19 Net income 0.0% 13.7% 20 Dividends 0.0% 1.4% 21 Additions to Retained Earnings 0.0% 12.3% 22 Global Manufacturing BENCHMARK FIRM LINE BY LINE ANALYSIS OF 2019 BALANCE SHEET COMPARED TO THE BENCHMARK FIRM (BETTER, SAME AS, WORSE than the Benchmark firm) 23 2019 2019 24 2019 COMMON SIZE BALANCE SHEET 25 ASSETS 26 Cash 0.0% 6.7% 27 Accounts receivable 0.0% 16.4% 28 Inventory 0.0% 30.6% 29 Total Current Assets 0.0% 53.7% 30 Net fixed assets 0.0% 46.3% 31 TOTAL ASSETS 0.0% 100.0% 32 LIABILITIES & STOCKHOLDERS' EQUITY 33 Accounts payable 0.0% 12.1% 34 Notes payable 0.0% 15.4% 35 Total Current Liabilities 0.0% 27.5% 36 Long-term debt 0.0% 15.8% 37 TOTAL LIABILITIES 0.0% 43.3% 38 Common stock 0.0% 4.5% 0.0% 52.2% 39 Retained earnings* 40 TOTAL STOCKHOLDERS' EQUITY 0.0% 56.7% 41 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 0.0% 100.0%