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ABC Corporation - Income Statement Common Size Common Size Common Size 2021 2022 2023E Revenue $ 13,000,000 100.0% $ 16,900,000 1 $ 21,125,000 CGS 6,500,000
| ABC Corporation - Income Statement | Common Size | Common Size | Common Size | |||||||
| 2021 | 2022 | 2023E | ||||||||
| Revenue | $ 13,000,000 | 100.0% | $ 16,900,000 | 1 | $ 21,125,000 | |||||
| CGS | 6,500,000 | 50.0% | 8,281,000 | 1 | 9,928,750 | |||||
| Gross Profit | $ 6,500,000 | 50.0% | $ 8,619,000 | 1 | $ 11,196,250 | |||||
| SG&A | 2,860,000 | 22.0% | 3,550,000 | 1 | 4,225,000 | |||||
| R&D | 1,300,000 | 10.0% | 1,300,000 | 1 | 1,400,000 | |||||
| Deprec & Amort | 500,000 | 3.8% | 750,000 | 1 | 750,000 | |||||
| Total Op. Expense | 4,660,000 | 35.8% | 5,600,000 | 1 | 6,375,000 | |||||
| Operating Profit | $ 1,840,000 | 14.2% | $ 3,019,000 | 1 | $ 4,821,250 | |||||
| Interest cost (5% Average Interest Cost) | 605,000 | 4.7% | 575,000 | 1 | 525,000 | |||||
| Interest income (3% average Interest Rate) | 90,000 | 0.7% | 90,000 | 1 | 110,000 | |||||
| Pre-Tax | $ 1,325,000 | 10.2% | $ 2,534,000 | 1 | $ 4,406,250 | |||||
| Tax (21% rate) | 278,250 | 2.1% | 532,140 | 1 | 925,313 | |||||
| Net Income | $ 1,046,750 | 8.1% | $ 2,001,860 | 1 | $ 3,480,938 | |||||
| 13 | ||||||||||
| EPS - Basic | $ 0.10 | $ 0.20 | $ 0.35 | |||||||
| Average Shares Outstanding | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
| Stock Price | $ 3.00 | $ 4.00 | $ 5.50 | |||||||
| Hint: If you understand the basic construction of Common Size statements, Cells E5 - E31 and P5 - P37 give you information that will allow you to accurately fill in all answers for Columns G, K, T and X in under 3 minutes and accumulate 70 of the needed 80 points. | ||||||||||
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