A B C D E F A Jun '12 1 Ethan Allen Interiors Inc. 2 Income Statement (Industrial) 3 All figures in millions of U.S. Dollar, except per share items Jun '16 Jun '15 Jun '14 S Sales 794.202 754.600 746.659 6 Cost of Goods Sold (COGS) incl. D&A 351.966 343.437 340.163 7 Gross Income 442.236 411.163 406.496 8 SG&A Expense 353.057 345.229 336.860 9 EBIT (Operating Income) 89.179 65.934 69.636 10 Interest Expense 1.618 5.957 7.540 11 Other Income - Net 0.395 1.206 0.306 12 Unusual Expense - Net 0.000 4.500 0.000 13 Pretax Income 87.956 56.683 62.402 14 Income Taxes 31.319 19.541 19.471 15 Net Income 56.637 37.142 42.931 16 17 18 EPS (recurring) 2.00 1.38 1.47 19 EPS (diluted) 2.00 1.27 1.47 20 Diluted Shares Outstanding 28.32 29.18 29.28 21 Total Shares Outstanding 27.75 28.41 28.93 22 Dividends per Share 0.62 0.50 0.40 23 Payout Ratio 31.00 39.37 27 21 24 25 EBITDA 108.53 85.08 87.57 26 EBIT 89 18 65.93 69.64 27 Depreciation & Amortization Expense 19.35 19.14 17,93 28 Jun '13 729.083 330.734 398.349 337.912 60.437 8.778 -1.485 0.000 50.174 17.696 32.478 729.373 339.085 390.288 340.676 49.612 9.020 0.562 -0.085 41.239 -8.455 49.694 1.11 1.11 29.24 28.91 0.36 32.43 1.71 1.71 29.11 28.84 0.30 17.54 68.19 78.45 60.44 18.01 49.61 18.58 E F Jun '13 Jun '12 A B D Ethan Kllen Interiors Inc. Balance Sheet (Industrial) All figures in millions of U.S. Dollar, except per share items Jun '16 Jun '15 Jun '14 Assets - Cash Only 52.659 76.182 109.176 Total Short Term Investments 0.000 2.198 18.153 Short-Term Receivables 9.467 12.547 12.426 Inventories 162 323 151.916 146.275 0 Other Current Assets 23.755 27.831 19.599 1 Total Current Assets 248.204 270.674 305.629 2 Property, Plant & Equipment - Gross $98.264 594.912 601.709 3 Accumulated Depreciation 324.649 317.877 313.553 4 Net Property, Plant & Equipment 273.615 277.035 288.156 5 Other Long-Term Assets 55.590 59.599 60.649 6 Total Assets 577.409 607.308 654.434 7 8 Liabilities & Shareholders' Equity 9 ST Debt & Curr. Portion LT Debt 3.001 3.341 0.501 0 Accounts Payable 15.437 18.946 24.320 1 Other Current Liabilities 104.909 118.682 111.226 2 Total Current Liabilities 123.347 140.969 136.047 3 Long-Term Debt 38.837 74.227 130.411 4 Other Liabilities 23.023 21 577 20.509 5 Total Liabilities 185.207 236.773 286.967 6 Common Stock Par/Carry Value 0.489 0.489 0.486 - Additional Paid-In Capital/Capital Surplus 374.972 370.914 365.733 -8 Retained Earnings 646 315 607.079 584.395 -9 Treasury Stock and Other Deductions from Equity 629.574 607.947 583.147 0 Total Shareholders' Equity 392.202 370.535 367.467 -1 Total Liabilities & Shareholders' Equity 577.409 607.308 654.434 72.601 15.529 12.277 137.256 22.907 260.570 594,385 302.713 291.672 65.043 617.285 79.721 9.005 14.919 155.739 23.408 282.792 587.368 291.673 295.695 66.301 644.788 0.480 22.995 109.464 132.939 130.809 19.180 282.928 0.486 363.938 553.083 583.150 334.357 617.285 0.250 27.315 123.512 151.077 154.250 17.593 322.920 0.485 361.165 542.918 582.700 321.868 644.788 statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2017 will be $797.3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (5) the common dividend will be $0.75 per share. Use your judgment on all other items. 2. Use the same data as in Problem 1. a. Recalculate the percentage of sales income statement, but this time use the TREND function to forecast other income and interest expense. b. Recalculate the percentage of sales balance sheet, but this time use the TREND function to forecast cash, other long-term assets, and other liabilities. Do these new values appear to be more realistic than the original values? Does this make sense for each of these items? Might other income statement or balance sheet items be forecasted in this way? c. A B C D E F A Jun '12 1 Ethan Allen Interiors Inc. 2 Income Statement (Industrial) 3 All figures in millions of U.S. Dollar, except per share items Jun '16 Jun '15 Jun '14 S Sales 794.202 754.600 746.659 6 Cost of Goods Sold (COGS) incl. D&A 351.966 343.437 340.163 7 Gross Income 442.236 411.163 406.496 8 SG&A Expense 353.057 345.229 336.860 9 EBIT (Operating Income) 89.179 65.934 69.636 10 Interest Expense 1.618 5.957 7.540 11 Other Income - Net 0.395 1.206 0.306 12 Unusual Expense - Net 0.000 4.500 0.000 13 Pretax Income 87.956 56.683 62.402 14 Income Taxes 31.319 19.541 19.471 15 Net Income 56.637 37.142 42.931 16 17 18 EPS (recurring) 2.00 1.38 1.47 19 EPS (diluted) 2.00 1.27 1.47 20 Diluted Shares Outstanding 28.32 29.18 29.28 21 Total Shares Outstanding 27.75 28.41 28.93 22 Dividends per Share 0.62 0.50 0.40 23 Payout Ratio 31.00 39.37 27 21 24 25 EBITDA 108.53 85.08 87.57 26 EBIT 89 18 65.93 69.64 27 Depreciation & Amortization Expense 19.35 19.14 17,93 28 Jun '13 729.083 330.734 398.349 337.912 60.437 8.778 -1.485 0.000 50.174 17.696 32.478 729.373 339.085 390.288 340.676 49.612 9.020 0.562 -0.085 41.239 -8.455 49.694 1.11 1.11 29.24 28.91 0.36 32.43 1.71 1.71 29.11 28.84 0.30 17.54 68.19 78.45 60.44 18.01 49.61 18.58 E F Jun '13 Jun '12 A B D Ethan Kllen Interiors Inc. Balance Sheet (Industrial) All figures in millions of U.S. Dollar, except per share items Jun '16 Jun '15 Jun '14 Assets - Cash Only 52.659 76.182 109.176 Total Short Term Investments 0.000 2.198 18.153 Short-Term Receivables 9.467 12.547 12.426 Inventories 162 323 151.916 146.275 0 Other Current Assets 23.755 27.831 19.599 1 Total Current Assets 248.204 270.674 305.629 2 Property, Plant & Equipment - Gross $98.264 594.912 601.709 3 Accumulated Depreciation 324.649 317.877 313.553 4 Net Property, Plant & Equipment 273.615 277.035 288.156 5 Other Long-Term Assets 55.590 59.599 60.649 6 Total Assets 577.409 607.308 654.434 7 8 Liabilities & Shareholders' Equity 9 ST Debt & Curr. Portion LT Debt 3.001 3.341 0.501 0 Accounts Payable 15.437 18.946 24.320 1 Other Current Liabilities 104.909 118.682 111.226 2 Total Current Liabilities 123.347 140.969 136.047 3 Long-Term Debt 38.837 74.227 130.411 4 Other Liabilities 23.023 21 577 20.509 5 Total Liabilities 185.207 236.773 286.967 6 Common Stock Par/Carry Value 0.489 0.489 0.486 - Additional Paid-In Capital/Capital Surplus 374.972 370.914 365.733 -8 Retained Earnings 646 315 607.079 584.395 -9 Treasury Stock and Other Deductions from Equity 629.574 607.947 583.147 0 Total Shareholders' Equity 392.202 370.535 367.467 -1 Total Liabilities & Shareholders' Equity 577.409 607.308 654.434 72.601 15.529 12.277 137.256 22.907 260.570 594,385 302.713 291.672 65.043 617.285 79.721 9.005 14.919 155.739 23.408 282.792 587.368 291.673 295.695 66.301 644.788 0.480 22.995 109.464 132.939 130.809 19.180 282.928 0.486 363.938 553.083 583.150 334.357 617.285 0.250 27.315 123.512 151.077 154.250 17.593 322.920 0.485 361.165 542.918 582.700 321.868 644.788 statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2017 will be $797.3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (5) the common dividend will be $0.75 per share. Use your judgment on all other items. 2. Use the same data as in Problem 1. a. Recalculate the percentage of sales income statement, but this time use the TREND function to forecast other income and interest expense. b. Recalculate the percentage of sales balance sheet, but this time use the TREND function to forecast cash, other long-term assets, and other liabilities. Do these new values appear to be more realistic than the original values? Does this make sense for each of these items? Might other income statement or balance sheet items be forecasted in this way? c