create a sensitivity analysis, using the date provided.

SALES COGS Gross Profit/Revenues $ $ $ Selling/Admin/General Exp Officers' Compensation Rent Expense Bad Debt Expense Depreciation & Amort. Total Operating Exp Operating Income Other Income Interest Income Retail Income Interest Expense Net Profit Before Taxes Current Taxes Net Profit After Taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ Dividends Jones Income Statement 12/31/2011 12/31/2012 12/31/2013 1,154,560 $ 1,263,450 $ 1,312,500 584,620 $ 626,230 $ 642,450 569,940 $ 637,220 $ 670,050 170,500 220,000 5,500 1,520 58,000 455,520 114,420 2,200 42,510 74,110 22,233 51,877 $25,000 $ $ $ $ $ $ $ $ $ $ $ 178,560 225,000 ### 2,352 62,340 473,752 163,468 ### 2,000 ### 48,560 116,908 35,072 81,836 $25,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ COMMON SIZE 12/31/2011 12/31/2012 100.0% 100% 50.6% 49.6% 49.4% 50.4% 182,400 230,000 5,700 2,013 64,520 484,633 185,417 1,500 46,235 140,682 42,205 98,477 14.8% 19.1% 0.5% 0.1% 5.0% 39.5% 9.9% 0.0% 0.2% 0.0% 3.7% 6.4% 1.9% 4.5% 14.1% 17.808% 0.4% 0.186% 4.934% 37.5% 12.9% 0.0% 0.2% 0.0% 3.8% 9.3% 2.8% 6.5% $25,000 2.20% 2.00% MMON SIZE 12/31/2013 100% 48.9% 51.1% YEAR OVER YEAR 12/31/2012 12/31/2013 9.43% 3.88% 7.12% 2.59% 11.80% 2.59% 13.9% 17.52% 0.43% 0.15% 4.916% 36.9% 14.1% 0.0% 0.1% 0.0% 3.5% 10.7% 3.2% 7.5% 4.73% 2.27% 0.00% 54.74% 7.48% 4.00% 42.87% 0.00% -9.09% 0.00% 14.23% 57.75% 57.75% 57.75% 2.15% 2.22% 3.64% -14.41% 3.50% 2.30% 13.43% 0.00% -25.00% 0.00% -4.79% 20.34% 20.34% 20.33% 1.90% 0 0 ASSETS: 12/31/11 12/31/12 COMMON SIZE 12/31/13 12/31/11 12/31/12 $120,000 58,400 $122,198 61,250 $173,292 74,213 4.6% 2.3% 4.7% 2.4% 342,350 65,200 26,410 345,682 68,920 28,651 364,210 54,210 24,125 13.2% 2.5% 1.0% 13.3% 2.7% 1.1% 23.7% 24.2% 64,253 2,453,600 -578,990 2.5% 91.3% -17.5% 2.4% 93.3% -19.9% 1,975,710 1,963,112 1,938,863 ### ### ### 76.3% 100.0% 75.8% 100.0% $47,520 14,895 1.9% 0.5% 2.0% 0.5% 95,640 85,462 89,562 40,000 40,000 40,000 46,320 38,650 42,563 $244,010 $228,917 $234,540 3.7% 1.5% 1.8% 9.4% 3.3% 1.5% 1.5% 8.8% Current assets Cash and Cash equivalents Net Accounts receivable Inventory Short-term investments Other current assets Total current assets $612,360 $626,701 $690,050 Non-current assets: Furniture and Fixtures Land, Buildings and equipme Accumulated depreciation Total non-current assets Total Assets 65,840 2,362,000 -452,130 61,962 2,415,620 -514,470 LIABILITIES AND OWNERS EQUITY Current liabilities Accounts payable Accrued taxes Short term notes payable Current maturities of LT Debt Other current liabilities Total current liabilities $49,650 12,400 $51,245 13,560 Non-current Liabilities Long-term Debt Total Liabilities 652,000 $896,010 612,000 $840,917 572,000 $806,540 25.2% 34.6% 23.6% 32.5% 100,000 1,592,060 100,000 1,648,896 100,000 1,722,373 3.9% 61.5% 3.9% 63.7% 1,692,060 ### 1,748,896 ### 1,822,373 ### 65.4% 100.0% 67.5% 100.0% OwnersEquity Common stock Retained earnings Total Equity Total Liabilities and Equity MMON SIZE YEAR OVER YEAR 12/31/13 12/31/12 12/31/13 6.6% 2.8% 2% 5% 42% 21% 13.9% 2.1% 0.9% 1% 6% 8% 5% -21% -16% 26.2% 2% 10% 2.4% 93.3% -22.0% -6% 2% 14% 4% 2% 13% 73.8% 100.0% -1% 0% -1% 2% 1.8% 0.6% 3% 9% -7% 10% 3.4% 1.5% 1.6% 8.9% -11% 0% -17% -6% 5% 0% 10% 2% 21.8% 30.7% -6% -6% -7% -4% 3.8% 65.5% 0% 4% 0% 4% 69.3% 100.0% 3% 0% 4% 2% 2012 Cash flow from operating activities Net income depreciation Changes in working capital decrease (increase) in accounts receivable decrease (increase) in inventory increase (decrease) in accounts payable decrease (increase) in all other current assets increase (decrease) in other current liabilities Cash provided by operations Cash flows from investments sale (purchase) of fixed assets (use gross FA) Cash provided by investing activities Cash flows from financing activities additions (reductions) to short term debt additions (reductions) to long term debt dividends paid issues (repurchases) of stock cash provided by financing activities Net increase (decrease) in cash Beginning cash balance Ending cash balance 2013 $81,836 $98,477 62,340 64,520 -2,850 -12,963 -3,332 -18,528 1,595 -3,725 -2,241 4,526 -7,670 3,913 129678 136,220 -49,742 -40,271 -49,742 -40,271 -10,178 -40,000 -25,000 -2,560 -77,738 2,198 120,000 122,198 4,100 -40,000 -25,000 16,046 -44,854 51,094 122,198 173,292 Chapter 5 Assignment 3 Sensitivity Analysis This assignment builds upon the projected financial statements completed with the last assignment (Chapter 5 Assignment 2). We now look at different scenarios affecting projected operations over the next 4 years for Jones Company. Scenario 1 Balance Sheet Items current assets furniture & fixtures equipment notes payable accounts payable taxes CMLTD Other CL LTD 2014 2015 2016 2017 5% 5% 5% 5% 10,000 0 0 0 50,000 0 0 0 -10,000 -10,000 -10,000 -10,000 5% 5% 5% 5% 0 0 0 0 0 0 0 0 0 0 0 0 -40,000 -40,000 -40,000 -40,000 Income Statement Items - All numbers are percentage increase except COGS and Taxes 2014 2015 2016 2017 Sales Growth 5% 5% 5% 5% COGS (% of sales) 50% 50% 50% 50% SGA 5% 5% 5% 5% Officer's Comp 5% 5% 5% 5% Other Operating Expenses 0% 0% 0% 0% Interest Expense 0% 0% 0% 0% Interest Income 0% 0% 0% 0% Taxes (% of income) 30% 30% 30% 30% Dividends 0% 0% 0% 0% The results for 2014 should be similar to the previous assignment (Chapter 5, Assignment 2). SCENARIO 2 IS ON THE NEXT PAGE Scenario 2 is a higher growth model using the following assumptions: Balance Sheet Items current assets furniture & fixtures equipment notes payable accounts payable taxes CMLTD Other CL LTD 2014 2015 2016 2017 5% 10% 15% 20% 10,000 0 25,000 0 50,000 100,000 50,000 0 -10,000 -10,000 -10,000 -10,000 5% 10% 15% 20% 0 0 0 0 0 0 0 0 0 0 0 0 -40,000 -40,000 -40,000 -40,000 Income Statement Items - All numbers are percentage increase except COGS and Taxes 2014 2015 2016 2017 Sales Growth 5% 10% 15% 20% COGS (% of sales) 50% 52% 55% 55% SGA 5% 10% 15% 20% Officer's Comp 5% 5% 5% 5% Other Operating Expenses 5% 10% 15% 20% Interest Expense 0 5% 5% 5% Interest Income 0 0% 0% 0% Taxes (% of income) 30% 30% 30% 30% Dividends 0 0 0 0 Prepare a Balance Sheet, Income Statement, and Statement of Cash Flows for each scenario. Report only the raw numbers, not percent of assets or year over year growth. Same Suggestion as Assignment 2: Create a new Excel file for each of the Chapter 5 assignments, rather than adding worksheets to what you already have. By this I mean do Assignment 2, save it as Assignment 2, then open it back up and save it as Assignment 3 (you will still have the original Assignment 2 saved). Then, with each assignment, you can add in what you need. The benefit of this is you can simply copy and paste your 2013 column on the cash flow statement to the right for the 2014 column, and you don't have to do a new cash flow statement each time you change the balance sheet or income statement. It also saves a copy of each assignment if you need it later. Dry Supply Balance Sheet Actual Projected Assets 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 Cash 3 12 22 32 52 78 110 Accounts receivable 114 118 117 129 142 156 171 Less: allowance for doubtful accounts 5 5 5 5 5 5 5 Net accounts receivable 109 113 112 124 137 151 166 Inventory 73 72 67 74 81 89 98 Total current assets 185 197 201 229 270 318 374 Furniture and fixtures Leasehold improvements Transportation equipment Gross Fixed assets Less: Accumulated depreciation Net fixed assets Cash-value life insurance total assets 76 1 53 130 85 45 13 243 75 1 70 146 97 49 14 260 78 0 85 163 110 53 16 270 83 0 85 168 123 45 18 292 83 0 85 168 136 32 20 322 83 0 85 168 149 19 22 359 83 0 85 168 162 6 24 404 Liabilities Notes payable bank-short term Accounts payable-trade accrued taxes Accrued bonuses total current liabilities 81 42 5 10 138 68 46 6 11 131 59 31 7 12 109 49 34 7 12 102 39 38 7 12 96 29 41 7 12 89 19 45 7 12 83 Subordinated debt-officers total liabilities 48 186 58 189 67 176 67 169 67 163 67 156 67 150 2 55 57 2 69 71 2 92 94 2 121 123 2 157 159 2 200 202 2 252 254 243 260 270 292 322 359 404 Stock Retained earnings Total net worth Total liabilities and net worth current assets furniture & fixtures equipment Cash Value Insurance Notes payable accounts payable taxes bonuses subordinated debt 2014 0.1 5 0 2 -10 0.1 0 0 0 2015 0.1 0 0 2 -10 0.1 0 0 0 2016 0.1 0 0 2 -10 0.1 0 0 0 2017 0.1 0 0 2 -10 0.1 0 0 0 SALES COGS Gross Profit/Revenues $ $ $ Selling/Admin/General Exp Officers' Compensation Rent Expense Bad Debt Expense Depreciation & Amort. Total Operating Exp Operating Income Other Income Interest Income Retail Income Interest Expense Net Profit Before Taxes Current Taxes Net Profit After Taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ Dividends Jones Income Statement 12/31/2011 12/31/2012 12/31/2013 1,154,560 $ 1,263,450 $ 1,312,500 584,620 $ 626,230 $ 642,450 569,940 $ 637,220 $ 670,050 170,500 220,000 5,500 1,520 58,000 455,520 114,420 2,200 42,510 74,110 22,233 51,877 $25,000 $ $ $ $ $ $ $ $ $ $ $ 178,560 225,000 ### 2,352 62,340 473,752 163,468 ### 2,000 ### 48,560 116,908 35,072 81,836 $25,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ COMMON SIZE 12/31/2011 12/31/2012 100.0% 100% 50.6% 49.6% 49.4% 50.4% 182,400 230,000 5,700 2,013 64,520 484,633 185,417 1,500 46,235 140,682 42,205 98,477 14.8% 19.1% 0.5% 0.1% 5.0% 39.5% 9.9% 0.0% 0.2% 0.0% 3.7% 6.4% 1.9% 4.5% 14.1% 17.808% 0.4% 0.186% 4.934% 37.5% 12.9% 0.0% 0.2% 0.0% 3.8% 9.3% 2.8% 6.5% $25,000 2.20% 2.00% MMON SIZE 12/31/2013 100% 48.9% 51.1% YEAR OVER YEAR 12/31/2012 12/31/2013 9.43% 3.88% 7.12% 2.59% 11.80% 2.59% 13.9% 17.52% 0.43% 0.15% 4.916% 36.9% 14.1% 0.0% 0.1% 0.0% 3.5% 10.7% 3.2% 7.5% 4.73% 2.27% 0.00% 54.74% 7.48% 4.00% 42.87% 0.00% -9.09% 0.00% 14.23% 57.75% 57.75% 57.75% 2.15% 2.22% 3.64% -14.41% 3.50% 2.30% 13.43% 0.00% -25.00% 0.00% -4.79% 20.34% 20.34% 20.33% 1.90% 0 0 ASSETS: 12/31/11 12/31/12 COMMON SIZE 12/31/13 12/31/11 12/31/12 $120,000 58,400 $122,198 61,250 $173,292 74,213 4.6% 2.3% 4.7% 2.4% 342,350 65,200 26,410 345,682 68,920 28,651 364,210 54,210 24,125 13.2% 2.5% 1.0% 13.3% 2.7% 1.1% 23.7% 24.2% 64,253 2,453,600 -578,990 2.5% 91.3% -17.5% 2.4% 93.3% -19.9% 1,975,710 1,963,112 1,938,863 ### ### ### 76.3% 100.0% 75.8% 100.0% $47,520 14,895 1.9% 0.5% 2.0% 0.5% 95,640 85,462 89,562 40,000 40,000 40,000 46,320 38,650 42,563 $244,010 $228,917 $234,540 3.7% 1.5% 1.8% 9.4% 3.3% 1.5% 1.5% 8.8% Current assets Cash and Cash equivalents Net Accounts receivable Inventory Short-term investments Other current assets Total current assets $612,360 $626,701 $690,050 Non-current assets: Furniture and Fixtures Land, Buildings and equipme Accumulated depreciation Total non-current assets Total Assets 65,840 2,362,000 -452,130 61,962 2,415,620 -514,470 LIABILITIES AND OWNERS EQUITY Current liabilities Accounts payable Accrued taxes Short term notes payable Current maturities of LT Debt Other current liabilities Total current liabilities $49,650 12,400 $51,245 13,560 Non-current Liabilities Long-term Debt Total Liabilities 652,000 $896,010 612,000 $840,917 572,000 $806,540 25.2% 34.6% 23.6% 32.5% 100,000 1,592,060 100,000 1,648,896 100,000 1,722,373 3.9% 61.5% 3.9% 63.7% 1,692,060 ### 1,748,896 ### 1,822,373 ### 65.4% 100.0% 67.5% 100.0% OwnersEquity Common stock Retained earnings Total Equity Total Liabilities and Equity MMON SIZE YEAR OVER YEAR 12/31/13 12/31/12 12/31/13 6.6% 2.8% 2% 5% 42% 21% 13.9% 2.1% 0.9% 1% 6% 8% 5% -21% -16% 26.2% 2% 10% 2.4% 93.3% -22.0% -6% 2% 14% 4% 2% 13% 73.8% 100.0% -1% 0% -1% 2% 1.8% 0.6% 3% 9% -7% 10% 3.4% 1.5% 1.6% 8.9% -11% 0% -17% -6% 5% 0% 10% 2% 21.8% 30.7% -6% -6% -7% -4% 3.8% 65.5% 0% 4% 0% 4% 69.3% 100.0% 3% 0% 4% 2% 2012 Cash flow from operating activities Net income depreciation Changes in working capital decrease (increase) in accounts receivable decrease (increase) in inventory increase (decrease) in accounts payable decrease (increase) in all other current assets increase (decrease) in other current liabilities Cash provided by operations Cash flows from investments sale (purchase) of fixed assets (use gross FA) Cash provided by investing activities Cash flows from financing activities additions (reductions) to short term debt additions (reductions) to long term debt dividends paid issues (repurchases) of stock cash provided by financing activities Net increase (decrease) in cash Beginning cash balance Ending cash balance 2013 $81,836 $98,477 62,340 64,520 -2,850 -12,963 -3,332 -18,528 1,595 -3,725 -2,241 4,526 -7,670 3,913 129678 136,220 -49,742 -40,271 -49,742 -40,271 -10,178 -40,000 -25,000 -2,560 -77,738 2,198 120,000 122,198 4,100 -40,000 -25,000 16,046 -44,854 51,094 122,198 173,292 Chapter 5 Assignment 2 Pro Forma Financials Assignment Use Jones's Company's financial statements for 2011 through 2013 and the following information to construct a pro forma (projected) Balance Sheet, Income Statement, and Statement of Cash Flow. Report only the raw numbers, not percent of assets or year over year growth. Management believes sales will increase by 5% for 2014 and Cost of Goods Sold will be the same percentage of sales for 2014 as 2013. Selling, Gen, and Admin Expenses will also increase by 5%, and Officer's Compensation will increase by $10,000, but other operating expenses and interest expense will be the same. Interest income will be $1000, and interest expense will remain the same. Taxes will be the same percentage of net income for 2014 as 2013, and Dividends will remain at $25,000. On the balance sheet, each current asset account will increase by 5% to reflect the increase in sales. (Note: Cash will NOT increase by 5%. You need to complete the cash flow statement to calculate the ending cash amount. Complete the income statement first, then the balance sheet except for the cash amount, then the cash flow statement, then insert the cash amount into the balance sheet.) Jones plans to purchase $10,000 of Furniture and Fixtures and $50,000 in equipment. Short Term Notes Payable will decrease by $10,000, and Accounts Payable will increase 5%. Accrued Taxes, Current Maturities of Long Term Debt, and Other Current Liabilities will remain the same. Long Term debt will decrease by $40,000. If you find that your balance sheet does not balance, please look at the accumulated depreciation and retained earnings accounts to see that these are correct. These two accounts cause most of the issues. I also suggest creating a new Excel file for each of the Chapter 5 assignments, rather than adding worksheets to what you already have. By this I mean do Assignment 1, save it as Assignment 1, then open it back up and save it as Assignment 2 (you will still have the original Assignment 1 saved). Then, with each assignment, you can add in what you need. The benefit of this is you can simply copy and paste your 2013 column on the cash flow statement to the right for the 2014 column, and you don't have to do a new cash flow statement each time you change the balance sheet or income statement. It also saves a copy of each assignment if you need it later. Dry Supply Balance Sheet Dry Supply Income Statement Assets 12/31/2011 12/31/2012 12/31/2013 projected Cash 3 12 22 32 Accounts receivable 114 118 117 129 Less: allowance for doubtful accounts 5 5 5 5 Net accounts receivable 109 113 112 123 Inventory 73 72 67 74 Total current assets 185 197 201 229 Furniture and fixtures Leasehold improvements Transportation equipment Gross Fixed assets Less: Accumulated depreciation Net fixed assets Cash-value life insurance total assets 76 1 53 130 85 45 13 243 75 1 70 146 97 49 14 260 78 0 85 163 110 53 16 270 83 0 85 168 123 45 18 292 Liabilities Notes payable bank-short term Accounts payable-trade accrued taxes Accrued bonuses total current liabilities 81 42 5 10 138 68 46 6 11 131 59 31 7 12 109 49 34 7 12 102 Subordinated debt-officers total liabilities 48 186 58 189 67 176 67 169 2 55 57 2 69 71 2 92 94 2 121 123 243 260 270 292 Stock Retained earnings Total net worth Total liabilities and net worth Sales Cost of goods sold Gross profit/revenues Dry Supply Statement of Cash Flow 12/31/2011 12/31/2012 12/31/2013 projected 895 937 918 1010 645 667 631 694 250 270 287 316 Selling, Gen, & Admin Expenses Officers' compensation Rent expense Bad debt expense Profit sharing Expense Depreciation Total operating expenses Operating income 157 36 15 2 7 12 229 21 173 31 18 1 7 12 242 28 180 28 20 0 0 13 241 46 198 28 20 0 0 13 259 57 Other Income Interest Income Rental income Interest expense Net profit before taxes & extras Current taxes Net profit after taxes 0 2 3 6 20 11 9 0 2 3 7 26 12 14 0 2 3 11 40 17 23 0 2 3 11 51 22 29 12/31/2012 12/31/2013 projected Cash flow from operating activities Net income 14 23 29 depreciation 12 13 13 Changes in working capital decrease (increase) in accounts receivable -4 1 -12 decrease (increase) in inventory 1 5 -7 increase (decrease) in accounts payable 4 -15 3 decrease (increase) in all other current assets -1 -2 -2 increase (decrease) in taxes/bonuses due 2 2 0 Cash provided by operations 28 27 25 Cash flows from investments sale (purchase) of fixed assets (use gross FA) Cash provided by investing activities -16 -16 -17 -17 -5 -5 Cash flows from financing activities additions (reductions) to short term debt additions (reductions) to long term debt dividends paid issues (repurchases) of stock cash provided by financing activities -13 10 0 0 -3 -9 9 0 0 0 -10 0 0 0 -10 9 3 12 10 12 22 10 22 32 Net increase (decrease) in cash Beginning cash balance Ending cash balance SALES COGS Gross Profit/Revenues $ $ $ Selling/Admin/General Exp Officers' Compensation Rent Expense Bad Debt Expense Depreciation & Amort. Total Operating Exp Operating Income Other Income Interest Income Retail Income Interest Expense Net Profit Before Taxes Current Taxes Net Profit After Taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ Dividends Jones Income Statement 12/31/2011 12/31/2012 12/31/2013 1,154,560 $ 1,263,450 $ 1,312,500 584,620 $ 626,230 $ 642,450 569,940 $ 637,220 $ 670,050 170,500 220,000 5,500 1,520 58,000 455,520 114,420 2,200 42,510 74,110 22,233 51,877 $25,000 $ $ $ $ $ $ $ $ $ $ $ 178,560 225,000 ### 2,352 62,340 473,752 163,468 ### 2,000 ### 48,560 116,908 35,072 81,836 $25,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ COMMON SIZE 12/31/2011 12/31/2012 100.0% 100% 50.6% 49.6% 49.4% 50.4% 182,400 230,000 5,700 2,013 64,520 484,633 185,417 1,500 46,235 140,682 42,205 98,477 14.8% 19.1% 0.5% 0.1% 5.0% 39.5% 9.9% 0.0% 0.2% 0.0% 3.7% 6.4% 1.9% 4.5% 14.1% 17.808% 0.4% 0.186% 4.934% 37.5% 12.9% 0.0% 0.2% 0.0% 3.8% 9.3% 2.8% 6.5% $25,000 2.20% 2.00% MMON SIZE 12/31/2013 100% 48.9% 51.1% YEAR OVER YEAR 12/31/2012 12/31/2013 9.43% 3.88% 7.12% 2.59% 11.80% 2.59% 13.9% 17.52% 0.43% 0.15% 4.916% 36.9% 14.1% 0.0% 0.1% 0.0% 3.5% 10.7% 3.2% 7.5% 4.73% 2.27% 0.00% 54.74% 7.48% 4.00% 42.87% 0.00% -9.09% 0.00% 14.23% 57.75% 57.75% 57.75% 2.15% 2.22% 3.64% -14.41% 3.50% 2.30% 13.43% 0.00% -25.00% 0.00% -4.79% 20.34% 20.34% 20.33% 1.90% 0 0 COMMON SIZE ASSETS: Current assets Cash and Cash equiv Net Accounts receiv Inventory Short-term investme Other current assets Total current assets 12/31/11 12/31/12 12/31/13 ### $120,000 58,400 342,350 65,200 26,410 $612,360 $122,198 61,250 345,682 68,920 28,651 $626,701 $173,292 74,213 364,210 54,210 24,125 $690,050 4.64% 2.26% 13.23% 2.52% 1.02% 23.66% Non-current assets: Furniture and Fixtu 65,840 61,962 Land, Buildings and 2,362,000 2,415,620 Accumulated deprec -452,130 -514,470 Total non-current assets 1,975,710 1,963,112 Total Assets $2,588,070 $2,589,813 LIABILITIES AND OWNERS EQUITY Current liabilities Accounts payable $49,650 $51,245 Accrued taxes 12,400 13,560 Short term notes pa 95,640 85,462 Current maturities o 40,000 40,000 Other current liabili 46,320 38,650 Total current liabilities $244,010 $228,917 Non-current Liabilities Long-term Debt 652,000 612,000 Total Liabilities $896,010 $840,917 OwnersEquity Common stock 100,000 100,000 Retained earnings 1,592,060 1,648,896 Total Equity 1,692,060 1,748,896 Total Liabilities and Equity $2,588,070 $2,589,813 64,253 2.54% 2,453,600 91.26% -578,990 -17.47% 1,938,863 76.34% $2,628,913 100.00% $47,520 14,895 89,562 40,000 42,563 $234,540 1.92% 0.48% 3.70% 1.55% 1.79% 9.43% 572,000 $806,540 25.19% 34.62% 100,000 3.86% 1,722,373 61.52% 1,822,373 65.38% $2,628,913 100.00% COMMON SIZE ### ### 4.72% 2.37% 13.35% 2.66% 1.11% 24.20% 6.59% 2.82% 13.85% 2.06% 0.92% 26.25% 2.39% 2.44% 93.27% 93.33% -19.87% -22.02% 75.80% 73.75% 100.00% 100.00% YEAR OVER YEAR 12/31/12 ### 1.83% 41.81% 4.88% 21.16% 0.97% 5.36% 5.71% -21.34% 8.49% -15.80% 2.34% 10.11% -5.89% 2.27% 13.79% -0.64% 0.07% 3.70% 1.57% 12.54% -1.24% 1.51% 1.98% 0.52% 3.30% 1.54% 1.49% 8.84% 1.81% 0.57% 3.41% 1.52% 1.62% 8.92% 3.21% 9.35% -10.64% 0.00% -16.56% -6.19% -7.27% 9.85% 4.80% 0.00% 10.12% 2.46% 23.63% 32.47% 21.76% 30.68% -6.13% -6.15% -6.54% -4.09% 3.86% 3.80% 63.67% 65.52% 67.53% 69.32% 100.00% 100.00% 0.00% 3.57% 3.36% 0.07% 0.00% 4.46% 4.20% 1.51% 2012 Cash flow from operating activities Net income depreciation Changes in working capital decrease (increase) in accounts receivable decrease (increase) in inventory increase (decrease) in accounts payable decrease (increase) in all other current assets increase (decrease) in other current liabilities Cash provided by operations Cash flows from investments sale (purchase) of fixed assets (use gross FA) Cash provided by investing activities Cash flows from financing activities additions (reductions) to short term debt additions (reductions) to long term debt dividends paid issues (repurchases) of stock cash provided by financing activities Net increase (decrease) in cash Beginning cash balance Ending cash balance 2013 2014 $81,836 $98,477 62,340 64,520 108,195 64520 -2,850 -12,963 -3,332 -18,528 1,595 -3,725 -2,241 4,526 -7,670 3,913 129678 136,220 -3711 -18211 2376 -1206 0 151,963 -49,742 -40,271 -49,742 -40,271 -60,000 -60,000 -10,178 -40,000 -25,000 -2,560 -77,738 2,198 120,000 122,198 -10,000 -40,000 -25,000 -2710 -77,710 14,253 173,292 187,545 4,100 -40,000 -25,000 16,046 -44,854 51,094 122,198 173,292 SALES COGS Gross Profit/Revenues Selling/Admin/General Exp Officers' Compensation Rent Expense Bad Debt Expense Depreciation & Amort. Total Operating Exp Operating Income Other Income Interest Income Retail Income Interest Expense Net Profit Before Taxes Current Taxes Net Profit After Taxes Dividends Jones Income Statement 12/31/2011 12/31/2012 1154560 1263450 584620 626230 569940 637220 170500 220000 5500 1520 58000 455520 114420 0 2200 0 42510 74110 22233 51877 178560 225000 5500 2352 62340 473752 163468 0 2000 0 48560 116908 35072 81836 25000 25000 come Statement 12/31/2013 Increase by 1312500 5% 642450 48.9 670050 51.10% 182400 230000 5700 2013 64520 484633 185417 0 1500 0 46235 140682 42205 98477 25000 5% 30% 12/31/2014 1378125 674573 703553 191520 240000 5700 2013 64520 503753 199800 0 1000 0 46,235 154565 46369 108195 25,000 Jones Company Balance Sheet As ON ..... ASSETS: Current assets Cash and Cash equivalents Net Accounts receivable Inventory Short-term investments Other current assets Total current assets Non-current assets: Furniture and Fixtures Land, Buildings and equipment Accumulated depreciation Total non-current assets Total Assets LIABILITIES AND OWNERS EQUITY Current liabilities Accounts payable Accrued taxes Short term notes payable Current maturities of LT Debt Other current liabilities Total current liabilities Non-current Liabilities Long-term Debt Total Liabilities OwnersEquity Common stock Retained earnings Total Equity Total Liabilities and Equity 12/31/11 12/31/12 $120,000 58,400 342,350 65,200 26,410 $612,360 $122,198 61,250 345,682 68,920 28,651 $626,701 65,840 2,362,000 -452,130 1,975,710 $2,588,070 61,962 2,415,620 -514,470 1,963,112 $2,589,813 $49,650 12,400 95,640 40,000 46,320 $244,010 $51,245 13,560 85,462 40,000 38,650 $228,917 652,000 $896,010 612,000 $840,917 100,000 100,000 1,592,060 1,692,060 1,648,896 1,748,896 $2,588,070 $2,589,813 Company Proforma Balance sheet 12/31/13 12/31/2014 heet As ON ..... $173,292 74,213 364,210 54,210 24,125 $690,050 $187,545 77924 382421 56921 25331 $730,141 64,253 2,453,600 -578,990 1,938,863 $2,628,913 74,253 2,503,600 643510 1,934,343 $2,664,484 $47,520 14,895 89,562 40,000 42,563 $234,540 $49,896 14,895 79,562 40,000 42,563 $226,916 572,000 $806,540 532,000 $758,916 100,000 100,000 1,722,373 1,822,373 1,805,568 1,905,568 $2,628,913 $2,664,484 Notes Net profit Begi.Retained earnings Dividend Ending Retainded earnings 81,836 98477 1,673,896 25,000 1,747,373 25,000 1,648,896 1,722,373 108195 1,830,568 25,000 1,805,568