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 (COLUMN 2) (COLUMN 3) (COLUMN 4) (COLUMN 5) EVALUATION FROM COMMON SIZE 2019 WORKSHEET EVALUATION FROM % CHANGE WORKSHEET EVALUATION FROM RATIOS 2019 WORKSHEET 7 (COLUMN 1) COLUMNS 2, 3 AND 4 will fill in automatically with your evaluations from the previous worksheets. (NO ACTION REQUIRED) STRENGTH OR WEAKNESS OR UNDETERMINED KEY ITEMS ON FINANCIAL STATEMENTS 8 9 EXPENSES AND PROFITABILITY 10 COST OF GOODS SOLD 0 0 11 ADMINISTRATIVE EXPENSES 0 0 12 EBIT O O 0 0 0 13 INTEREST EXPENSE NET INCOME 14 loverall Profitability 15 DIVIDENDS 0 0 0 0 0 0 ADDITIONS TO RETAINED EARNINGS 16 0 0 0 19 ASSETS 20 CASH 0 0 0 21 ACCOUNTS RECEIVABLES 0 0 O 22 INVENTORY 0 0 0 23 FIXED ASSETS 0 0 0 24 LIABILITIES 25 ACCOUNTS PAYABLE 0 0 NOTES PAYABLE 26 0 0 O o o 27 LONG-TERM DEBT 0 0 28 TOTAL LIABILITIES 0 O 0 29 30 ESSAY QUESTION: HELP: See the file CASE STUDY HELP file called "CASE STUDY HELP - EVALAUTION OF CRITICAL WEAKNESSES - CLASS LECTURE.mp4" for help with determininh your critical weaknesses. 31 Identify THREE CRITICAL WEAKNESSES from the weaknesses you identified above. Consider "critical" to mean areas that if improved would have the most impact on the firm's future success. IMPORTANT AREAS to consider for success could be improvement in: (1) Overall Profitability, (2) Dividend Policy, (3) Specific Types of Assets, (4) Current Liabilities, and (5) Long-term Debt. 32 33 CRITICAL WEAKNESS #1: 34 35 CRITICAL WEAKNESS #2: 36 37 CRITICAL WEAKNESS #3: 38 39