Exercise Assignment/Grade Dry Supply Company - Mini Case Study You will need the Income Statement Spread document for Dry Supply. Having learned key issues to address on the income statement, now look at an example of the analytical process, featuring Anne Schippel, the business banker. Dry Supply began as a wholesaler of powdered laundry products. Twenty years later, the operation changed its focus to dry cleaning supplies, such as liquid cleaners, plastic bags, and metal hangers. The company continues in that capacity today. Historically, the company has had a very good operating and credit record, and a check on its dealings with suppliers and customers reveals no notable problems. Having obtained this and other background information, Schippel prepares to analyze Dry Supply's Income Statements. Adhering to a consistent process, Schippel begins by first reviewing the statements presented, noting the overall quality and completeness of the data. Applicable information, taken from the statements, then is entered into a computer, which generates a standard spreadsheet. At Schippel's bank, all financial statements, regardless of the preparer, are analyzed by using a standard format. The bank has discovered that a key to effective analysis is consistency in both the presentation and evaluation of information. With spreadsheet in hand, Schippel begins a comprehensive financial analysis of Dry Supply's income statements to answer the followinn al lections Analyzing Financial Statements Exercise Assignment/Grade Assignment 1 Use the background information you have for Dry Supply and its Income Statement Spread, Balance Sheet Spread, Ratio Summary, Comparative Analysis, and Statement of Cash Flows to prepare a Pro Forma Income Statement for 204. (This is the year following 203.) Be sure to specify the assumptions used to prepare the report. A template for the Pro Forma Income Statement is provided for your convenience and for consistency. Assignment 2 What information would you need and/or have Anne Schippel ask the owners of Dry Supply in order to prepare a cash budget for 204? Halance Shent Seread: Orv Supply \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Commonsired report \\ (S in So00) \\ Asseta \\ Caih \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Reivis \\ 12/By/20n1 \end{tabular}} & \multicolumn{2}{|l|}{\begin{tabular}{l} Anves \\ 12yipos \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Mevien \\ -12mat/20, \end{tabular}} \\ \hline & in x & Amburi & s & Antont & 3 & \\ \hline & 53 & 12 & $12 & 46 & 522 & it \\ \hline Ascounts feceivable & 114 & 469 & & 45.4 & 117 & 433 \\ \hline \begin{tabular}{l} Lesk allowance for doubefli \\ accounti. \end{tabular} & 5 & 27 & 5 & 19 & 5 & 1.9 \\ \hline Netaktounts receivatle & 100 & 445 & 113 & 435 & 112 & 415 \\ \hline inventory & 3 & 320 & & 27 & 62 & 248 \\ \hline Tocal current assets & 185 & 761 & & 33 & 201 & 74.4 \\ \hline Furniture and fotures & 76 & 313 & 5 & 21.0 & & 28.9 \\ \hline tesubald ingrovemenss: & 1 & 04 & 1 & Q4 & 0 & 0.0 \\ \hline Transportation equipinent & 5 & 213 & & 359 & 82 & its \\ \hline Gross ficed assets & 130 & & 145 & & 169 & 60.4 \\ \hline \begin{tabular}{l} Less: Accumulated \\ depreciation \end{tabular} & Es & 350 & 22 & & 110 & 4n] \\ \hline Net fixed assets & 45 & 185 & 49 & 13.8 & 53 & 19.5 \\ \hline Cashralue life insurance. & 13 & 23 & 14 & 34 & 15 & 59 \\ \hline Total assets. & $243 & 1000 & $260 & 3000 & 5270 & 1000 \\ \hline \end{tabular} Labilities \begin{tabular}{|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Wates paystile bank ahort- \\ term \end{tabular} & & 33.3 & 69 & 262 & 59 & 335 \\ \hline Accourits payable-trade & 42 & 17.3 & 46 & 177 & 31 & 115 \\ \hline Accrued tanes & 5 & 2.1 & 6 & 2.3 & 7 & 26 \\ \hline Accrued bonuses & 10 & 41) & 11 & 43 & 12 & SA \\ \hline Total current fiabilities & 138 & 568 & 131 & 50.4 & 109 & 40.4 \\ \hline Subordinated debt ofticers & 418. & 198 & s3: & 233 & GI. & 248 \\ \hline Total liabilities & 185 & 765 & 189 & 727 & 176 & 65.2 \\ \hline \multicolumn{7}{|l|}{\begin{tabular}{l} Totar fiabilities \\ Owners Equity \end{tabular}} \\ \hline Common stock & 2 & & 2 & 08 & 2 & 0.7 \\ \hline Retained earnings & $5 & 22.6 & 6 & 265 & 22 & 14! \\ \hline Totaliowners' equity & 57. & 235 & 2 & 221 & 94 & 34.8 \\ \hline Totalfabilities and equily & $243 & 100.0 & $260 & 1000 & 5270 & 100,0 \\ \hline \end{tabular} Exercise Assignment/Grade Dry Supply Company - Mini Case Study You will need the Income Statement Spread document for Dry Supply. Having learned key issues to address on the income statement, now look at an example of the analytical process, featuring Anne Schippel, the business banker. Dry Supply began as a wholesaler of powdered laundry products. Twenty years later, the operation changed its focus to dry cleaning supplies, such as liquid cleaners, plastic bags, and metal hangers. The company continues in that capacity today. Historically, the company has had a very good operating and credit record, and a check on its dealings with suppliers and customers reveals no notable problems. Having obtained this and other background information, Schippel prepares to analyze Dry Supply's Income Statements. Adhering to a consistent process, Schippel begins by first reviewing the statements presented, noting the overall quality and completeness of the data. Applicable information, taken from the statements, then is entered into a computer, which generates a standard spreadsheet. At Schippel's bank, all financial statements, regardless of the preparer, are analyzed by using a standard format. The bank has discovered that a key to effective analysis is consistency in both the presentation and evaluation of information. With spreadsheet in hand, Schippel begins a comprehensive financial analysis of Dry Supply's income statements to answer the followinn al lections Analyzing Financial Statements Exercise Assignment/Grade Assignment 1 Use the background information you have for Dry Supply and its Income Statement Spread, Balance Sheet Spread, Ratio Summary, Comparative Analysis, and Statement of Cash Flows to prepare a Pro Forma Income Statement for 204. (This is the year following 203.) Be sure to specify the assumptions used to prepare the report. A template for the Pro Forma Income Statement is provided for your convenience and for consistency. Assignment 2 What information would you need and/or have Anne Schippel ask the owners of Dry Supply in order to prepare a cash budget for 204? Halance Shent Seread: Orv Supply \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Commonsired report \\ (S in So00) \\ Asseta \\ Caih \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Reivis \\ 12/By/20n1 \end{tabular}} & \multicolumn{2}{|l|}{\begin{tabular}{l} Anves \\ 12yipos \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Mevien \\ -12mat/20, \end{tabular}} \\ \hline & in x & Amburi & s & Antont & 3 & \\ \hline & 53 & 12 & $12 & 46 & 522 & it \\ \hline Ascounts feceivable & 114 & 469 & & 45.4 & 117 & 433 \\ \hline \begin{tabular}{l} Lesk allowance for doubefli \\ accounti. \end{tabular} & 5 & 27 & 5 & 19 & 5 & 1.9 \\ \hline Netaktounts receivatle & 100 & 445 & 113 & 435 & 112 & 415 \\ \hline inventory & 3 & 320 & & 27 & 62 & 248 \\ \hline Tocal current assets & 185 & 761 & & 33 & 201 & 74.4 \\ \hline Furniture and fotures & 76 & 313 & 5 & 21.0 & & 28.9 \\ \hline tesubald ingrovemenss: & 1 & 04 & 1 & Q4 & 0 & 0.0 \\ \hline Transportation equipinent & 5 & 213 & & 359 & 82 & its \\ \hline Gross ficed assets & 130 & & 145 & & 169 & 60.4 \\ \hline \begin{tabular}{l} Less: Accumulated \\ depreciation \end{tabular} & Es & 350 & 22 & & 110 & 4n] \\ \hline Net fixed assets & 45 & 185 & 49 & 13.8 & 53 & 19.5 \\ \hline Cashralue life insurance. & 13 & 23 & 14 & 34 & 15 & 59 \\ \hline Total assets. & $243 & 1000 & $260 & 3000 & 5270 & 1000 \\ \hline \end{tabular} Labilities \begin{tabular}{|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Wates paystile bank ahort- \\ term \end{tabular} & & 33.3 & 69 & 262 & 59 & 335 \\ \hline Accourits payable-trade & 42 & 17.3 & 46 & 177 & 31 & 115 \\ \hline Accrued tanes & 5 & 2.1 & 6 & 2.3 & 7 & 26 \\ \hline Accrued bonuses & 10 & 41) & 11 & 43 & 12 & SA \\ \hline Total current fiabilities & 138 & 568 & 131 & 50.4 & 109 & 40.4 \\ \hline Subordinated debt ofticers & 418. & 198 & s3: & 233 & GI. & 248 \\ \hline Total liabilities & 185 & 765 & 189 & 727 & 176 & 65.2 \\ \hline \multicolumn{7}{|l|}{\begin{tabular}{l} Totar fiabilities \\ Owners Equity \end{tabular}} \\ \hline Common stock & 2 & & 2 & 08 & 2 & 0.7 \\ \hline Retained earnings & $5 & 22.6 & 6 & 265 & 22 & 14! \\ \hline Totaliowners' equity & 57. & 235 & 2 & 221 & 94 & 34.8 \\ \hline Totalfabilities and equily & $243 & 100.0 & $260 & 1000 & 5270 & 100,0 \\ \hline \end{tabular}