Financial Statements. (10pts). 1. Using Husker Construction's financial statements (attached), determine Husker's break-even volume (5pts) 2. If Husker could increase sales $5M with $550K of additional fixed costs, should they do this? Why on why not? (5pts) BALANCE SHEET Assets $17,704,550 00 100.0% Current Assets Cash and Securities Accounts Receivable Retainage Inventory Earnings in Excess of Balings Prepaid Expenses Other Current Assets $2,815,024 88 $7 294,278.31 $1,735,048.78 $495,727 65 $1,292.432.81 $531,136.77 $194,750.15 15.9% 41.2% 9.8% 28% 73% 3.0% 1.1% Total Current Assets $14,358,397 35 81.1% Fixed Assets Property Construction Equipment Vehicles Office Equipment Less Depreciation Other Fixed Assets $814,409.71 $4,674.003.58 $832,114.27 $106.227.35 -$4.018.934.89 $938,341.63 4.6% 26.4% 4.7% 0.6% -22.7% 5.3% Total Fixed Assets $3,346,161 65 18.9% Liabilities $10.799,780.99 61.0% Current Liabilities Notes Payable Accounts Payable Retainage (Subcontracts) Billings in Excess of Earings Income Taxes Payable Other Current Laibilities $584 250:45 $6,798,550.66 S619,659.57 $1.274,728.25 $123.93191 $194.750 15 3.3% 38.494 3.59 725 0736 1.19 Total Current Liabilities $9.595.870 98 54 29 Fixed Liabilities Mortgages Equipment Vehicle Financing Other Fixed Liabilities 9814.409.71 $212,454 71 $127,045,59 4896 125 1:09 Total Fixed Liabilities S1203 910.01 68 Owners Equity S01 390 STOCK Related Eaming 510028.56 2050 9:41 29:696 Liabilities & Owners Equity STOH5200 000 INCOME STATEMENT Sales Revenge Direct Coate $41,722.000 100. BOS 1.85740 . 20 Labor Subcontract Equipment Miscellaneous Gross Profit 18.00 97.610.15.20 31.1. 159.50 31251.59270 1112300 20.05 TEOS EN 3.0 10% 25 12 $5.841.232.00 1OX Overhead 16.3 Paed Variable Overhead Indirect Coats Project Overhead Holidays haurange-Hea Retirement Salaries-Bones Salaries Vacation Sid. One Travel Reimbursement OD OLIS 0.0% $10.430 77 33.507.70 133,000.01 $104.307 73 552 153 510.430.77 0. 57301.54 2556530 373730.01 $104 307.73 135.507.70 0.35 0.15 OON IN QON $10.952.21 610.170.00 $15.646.16 $10.490 72 2073035 265 07 519740237 Field Employee Benefits Depreciation Insurance Repairs and Maintenance Smal Tools and Supplies 0.15 526078.93 51.038.47 135 078 93 ON 015 325 07893 553 0347 315251 17.8230 Feld Equipment Expenses 5427.776 ON $5736925 570-46771 General $119.93.38 157369.25 23 03 119.9333 Field Insurance Expenses $177 22313 049 SST 30325 5119.93 Depreciation Fuel Turance Repairs and Maintenance $46.3848 141.72200 520 55 54112300 015 14100 320 36:55 Field Vonide Expenses 35512420 3100 12311 Field Shop Expense Field Warranto Expense 531 23232 5128.10022 51251 Field Miscelaneous Ense 13 02 8.46.13 Total Indirect costs 531064 24 35223090 General Administrative Cost Office Overhead Budding Soup 11.01 340120 0.01 Bunde Lhasa BMS TAN TER 2 INCOME STATEMENT Sales Revenge Direct Coate $41,722.000 100. BOS 1.85740 . 20 Labor Subcontract Equipment Miscellaneous Gross Profit 18.00 97.610.15.20 31.1. 159.50 31251.59270 1112300 20.05 TEOS EN 3.0 10% 25 12 $5.841.232.00 1OX Overhead 16.3 Paed Variable Overhead Indirect Coats Project Overhead Holidays haurange-Hea Retirement Salaries-Bones Salaries Vacation Sid. One Travel Reimbursement OD OLIS 0.0% $10.430 77 33.507.70 133,000.01 $104.307 73 552 153 510.430.77 0. 57301.54 2556530 373730.01 $104 307.73 135.507.70 0.35 0.15 OON IN QON $10.952.21 610.170.00 $15.646.16 $10.490 72 2073035 265 07 519740237 Field Employee Benefits Depreciation Insurance Repairs and Maintenance Smal Tools and Supplies 0.15 526078.93 51.038.47 135 078 93 ON 015 325 07893 553 0347 315251 17.8230 Feld Equipment Expenses 5427.776 ON $5736925 570-46771 General $119.93.38 157369.25 23 03 119.9333 Field Insurance Expenses $177 22313 049 SST 30325 5119.93 Depreciation Fuel Turance Repairs and Maintenance $46.3848 141.72200 520 55 54112300 015 14100 320 36:55 Field Vonide Expenses 35512420 3100 12311 Field Shop Expense Field Warranto Expense 531 23232 5128.10022 51251 Field Miscelaneous Ense 13 02 8.46.13 Total Indirect costs 531064 24 35223090 General Administrative Cost Office Overhead Budding Soup 11.01 340120 0.01 Bunde Lhasa BMS TAN TER 2 61.020.02 0. 586A30.45 54.360.84 $78,230.79 0.2% 0. 584761.86 23.400.24 0.2 362,884.64 $16,689.24 $13,0M 4 $10.430.77 OON 0.0% 0.0% Om Een penses Office Supplies Depreciation Puw & OU Insurance Repairs and Maintenance Ofte Vehides Expenses Insurance-Disability Insurance Life Salaries Offers Retirement Orlos Compensation 0.2% 0.0% 0.ON 0.0% 16.905.77 582 58464 $11.68247 $13,00 47 510480.77 5102.743.11 0.2% 0.3% $97,73634 55.605.77 $13.038 47 $18.546.16 5938,769.53 $20,001 0.0% 0.0% 2.3 0.1 0.0% 0.0% 2.6% 0.1 $12.034.40 $15,646 16 5657.136.67 120.11.55 5201,630.5 S600,318.60 2.4 2.0 $708,684.64 $281.630.86 Accounting Legal Other $39.072.32 $27.641.68 $16.646.16 0.1% 0.1% 0.0% 0.15 0.1% 0.0 $20.650.62 $19.349.00 $10.942.31 $11 421.70 58.290.46 54.693 Professional Fees 1,2% 0.21 356,952.00 $24,40 01 ON $81.300.00 541,723.09 1156,461.59 310430 77 $8.507.70 0:45 $12.516 0 0.0% 0.1 0.15 0.4 DON 0.1% $29,200.10 3156 A010 $10,430,77 12548539 $10.95231 $245,123.35 0.0 05 $221.683.00 $2340024 120,001.05 52, 153 0.1% 0. DUIN 0.1% $10,589 24 SM 507.70 5417231 $100 Advertising Com Literature Promotion Sales & Marketing Expenses Meals Travel Travel & Entertainment Expenses Blad Debt Classified Advertising Contribution Dues & Subscrptions Fines Pontos Licensing Temporary Secretarial Miscellaneous 02 021 563.10604 373,016,41 16, 33120232 540 540.17 $15.038 41 110,410,7% 510,420,77 520.00 1417230 $19,816 47 162,564 66 50.347.70 $9.900.23 029 0 1 0.16 00 0.016 00 0.14 DIN 2 0 1 DAN ON 00 0.01 09 019 153.000.00 12190452 139,036 94 $13,038 47 52.307.00 $10.436.77 510437 $20 2016 SAL300 Other G&A Expenses 52.07 DX DI 1141.366.00 $15,000 56238414 $41.723 02 521042 0 1024 02 0:1 02 $40.000.00 541 7230 interest income Miscellaneous income Interest Expense Other Income & Bietes Total General & Administrative Costs Total Overhead 21 $76.1444 34120 SL 534421.55 $2.50 SON 76033070 14:22. DO T001 110 12,9801130 11 200 651 Net Pront Before Tax $1.COB 22.00 5.08 A Financial Statements. (10pts). 1. Using Husker Construction's financial statements (attached), determine Husker's break-even volume (5pts) 2. If Husker could increase sales $5M with $550K of additional fixed costs, should they do this? Why on why not? (5pts) BALANCE SHEET Assets $17,704,550 00 100.0% Current Assets Cash and Securities Accounts Receivable Retainage Inventory Earnings in Excess of Balings Prepaid Expenses Other Current Assets $2,815,024 88 $7 294,278.31 $1,735,048.78 $495,727 65 $1,292.432.81 $531,136.77 $194,750.15 15.9% 41.2% 9.8% 28% 73% 3.0% 1.1% Total Current Assets $14,358,397 35 81.1% Fixed Assets Property Construction Equipment Vehicles Office Equipment Less Depreciation Other Fixed Assets $814,409.71 $4,674.003.58 $832,114.27 $106.227.35 -$4.018.934.89 $938,341.63 4.6% 26.4% 4.7% 0.6% -22.7% 5.3% Total Fixed Assets $3,346,161 65 18.9% Liabilities $10.799,780.99 61.0% Current Liabilities Notes Payable Accounts Payable Retainage (Subcontracts) Billings in Excess of Earings Income Taxes Payable Other Current Laibilities $584 250:45 $6,798,550.66 S619,659.57 $1.274,728.25 $123.93191 $194.750 15 3.3% 38.494 3.59 725 0736 1.19 Total Current Liabilities $9.595.870 98 54 29 Fixed Liabilities Mortgages Equipment Vehicle Financing Other Fixed Liabilities 9814.409.71 $212,454 71 $127,045,59 4896 125 1:09 Total Fixed Liabilities S1203 910.01 68 Owners Equity S01 390 STOCK Related Eaming 510028.56 2050 9:41 29:696 Liabilities & Owners Equity STOH5200 000 INCOME STATEMENT Sales Revenge Direct Coate $41,722.000 100. BOS 1.85740 . 20 Labor Subcontract Equipment Miscellaneous Gross Profit 18.00 97.610.15.20 31.1. 159.50 31251.59270 1112300 20.05 TEOS EN 3.0 10% 25 12 $5.841.232.00 1OX Overhead 16.3 Paed Variable Overhead Indirect Coats Project Overhead Holidays haurange-Hea Retirement Salaries-Bones Salaries Vacation Sid. One Travel Reimbursement OD OLIS 0.0% $10.430 77 33.507.70 133,000.01 $104.307 73 552 153 510.430.77 0. 57301.54 2556530 373730.01 $104 307.73 135.507.70 0.35 0.15 OON IN QON $10.952.21 610.170.00 $15.646.16 $10.490 72 2073035 265 07 519740237 Field Employee Benefits Depreciation Insurance Repairs and Maintenance Smal Tools and Supplies 0.15 526078.93 51.038.47 135 078 93 ON 015 325 07893 553 0347 315251 17.8230 Feld Equipment Expenses 5427.776 ON $5736925 570-46771 General $119.93.38 157369.25 23 03 119.9333 Field Insurance Expenses $177 22313 049 SST 30325 5119.93 Depreciation Fuel Turance Repairs and Maintenance $46.3848 141.72200 520 55 54112300 015 14100 320 36:55 Field Vonide Expenses 35512420 3100 12311 Field Shop Expense Field Warranto Expense 531 23232 5128.10022 51251 Field Miscelaneous Ense 13 02 8.46.13 Total Indirect costs 531064 24 35223090 General Administrative Cost Office Overhead Budding Soup 11.01 340120 0.01 Bunde Lhasa BMS TAN TER 2 INCOME STATEMENT Sales Revenge Direct Coate $41,722.000 100. BOS 1.85740 . 20 Labor Subcontract Equipment Miscellaneous Gross Profit 18.00 97.610.15.20 31.1. 159.50 31251.59270 1112300 20.05 TEOS EN 3.0 10% 25 12 $5.841.232.00 1OX Overhead 16.3 Paed Variable Overhead Indirect Coats Project Overhead Holidays haurange-Hea Retirement Salaries-Bones Salaries Vacation Sid. One Travel Reimbursement OD OLIS 0.0% $10.430 77 33.507.70 133,000.01 $104.307 73 552 153 510.430.77 0. 57301.54 2556530 373730.01 $104 307.73 135.507.70 0.35 0.15 OON IN QON $10.952.21 610.170.00 $15.646.16 $10.490 72 2073035 265 07 519740237 Field Employee Benefits Depreciation Insurance Repairs and Maintenance Smal Tools and Supplies 0.15 526078.93 51.038.47 135 078 93 ON 015 325 07893 553 0347 315251 17.8230 Feld Equipment Expenses 5427.776 ON $5736925 570-46771 General $119.93.38 157369.25 23 03 119.9333 Field Insurance Expenses $177 22313 049 SST 30325 5119.93 Depreciation Fuel Turance Repairs and Maintenance $46.3848 141.72200 520 55 54112300 015 14100 320 36:55 Field Vonide Expenses 35512420 3100 12311 Field Shop Expense Field Warranto Expense 531 23232 5128.10022 51251 Field Miscelaneous Ense 13 02 8.46.13 Total Indirect costs 531064 24 35223090 General Administrative Cost Office Overhead Budding Soup 11.01 340120 0.01 Bunde Lhasa BMS TAN TER 2 61.020.02 0. 586A30.45 54.360.84 $78,230.79 0.2% 0. 584761.86 23.400.24 0.2 362,884.64 $16,689.24 $13,0M 4 $10.430.77 OON 0.0% 0.0% Om Een penses Office Supplies Depreciation Puw & OU Insurance Repairs and Maintenance Ofte Vehides Expenses Insurance-Disability Insurance Life Salaries Offers Retirement Orlos Compensation 0.2% 0.0% 0.ON 0.0% 16.905.77 582 58464 $11.68247 $13,00 47 510480.77 5102.743.11 0.2% 0.3% $97,73634 55.605.77 $13.038 47 $18.546.16 5938,769.53 $20,001 0.0% 0.0% 2.3 0.1 0.0% 0.0% 2.6% 0.1 $12.034.40 $15,646 16 5657.136.67 120.11.55 5201,630.5 S600,318.60 2.4 2.0 $708,684.64 $281.630.86 Accounting Legal Other $39.072.32 $27.641.68 $16.646.16 0.1% 0.1% 0.0% 0.15 0.1% 0.0 $20.650.62 $19.349.00 $10.942.31 $11 421.70 58.290.46 54.693 Professional Fees 1,2% 0.21 356,952.00 $24,40 01 ON $81.300.00 541,723.09 1156,461.59 310430 77 $8.507.70 0:45 $12.516 0 0.0% 0.1 0.15 0.4 DON 0.1% $29,200.10 3156 A010 $10,430,77 12548539 $10.95231 $245,123.35 0.0 05 $221.683.00 $2340024 120,001.05 52, 153 0.1% 0. DUIN 0.1% $10,589 24 SM 507.70 5417231 $100 Advertising Com Literature Promotion Sales & Marketing Expenses Meals Travel Travel & Entertainment Expenses Blad Debt Classified Advertising Contribution Dues & Subscrptions Fines Pontos Licensing Temporary Secretarial Miscellaneous 02 021 563.10604 373,016,41 16, 33120232 540 540.17 $15.038 41 110,410,7% 510,420,77 520.00 1417230 $19,816 47 162,564 66 50.347.70 $9.900.23 029 0 1 0.16 00 0.016 00 0.14 DIN 2 0 1 DAN ON 00 0.01 09 019 153.000.00 12190452 139,036 94 $13,038 47 52.307.00 $10.436.77 510437 $20 2016 SAL300 Other G&A Expenses 52.07 DX DI 1141.366.00 $15,000 56238414 $41.723 02 521042 0 1024 02 0:1 02 $40.000.00 541 7230 interest income Miscellaneous income Interest Expense Other Income & Bietes Total General & Administrative Costs Total Overhead 21 $76.1444 34120 SL 534421.55 $2.50 SON 76033070 14:22. DO T001 110 12,9801130 11 200 651 Net Pront Before Tax $1.COB 22.00 5.08 A