Instructions Tab 1 Balance Sheet & Inc.State Tab 2 Ratio Analysis Tab 3_Common-size Analysis Instructions: All grey cells need to be filled. Numbers in the yellow color cells are the sums of each activities. The sum of numbers in grey cells in each category must equal the number in the yellow color cell. Operating Activities Net income Additions (sources of cash) Depreciation Increase in accounts payable Subtractions (uses of cash) Increase in accounts receivable Decrease in accrued income taxes Increase in other current assets 2023 114 2022 203 218 12 Ta 174 37 -7 -24 -32 -21 -8 -5 Increase in inventories -6 -49 Net cash provided by operating activities 272 334 Long-Term Investing Activities Increase in property equipment -642 -382 Decrease in goodwill and other assets 0 0 Net cash used in investing activities -642 -382 Financing Activities Increase in notes payable Increase in long-term debt Sale of common stock Payment of cash dividends ** Purchase of treasury stock 37 42 78 96 220 244 -23 -122 -80 -15 Net cash provided by financing activities 232 245 Net increase in cash and marketable securities -138 197 Cash and marketable securities at beginning of year 366 169 Cash and marketable securities at end of year 228 366 ** Dividends: 2023 2022 Jan 1 Retained Earnings 270 179 add Net Income sub-total less dividends Dec 31 Retained Earnings 114 203 384 382 Instructions Tab 1_BalanceSheet & Inc.State Tab 2_Ratio Analysis Tab 3_Common-size Analysis Ta Largo Gobal Balance Sheet as of December 31 (millions) 2023 2022 2021 2023 2022 2021 Assets: Liabilities and Stockholders' Equity: Cash and marketable securities 228 366 169 Accounts payable and accruals 361 324 312 Accounts receivable 188 181 157 Notes payable 140 103 61 Inventory 404 398 349 Accrued taxes 56 88 109 Other current assets 18 10 5 Total current liabilities 557 515 482 Total current assets 838 955 680 Property, plant, and equipment 4,000 3.358 2,976 Long-term debt 457 379 283 Less: Accumulated depreciation 2,000 1,826 1,608 Total liabilities 1,014 894 765 Net property, plant, and equipment 2,000 1,532 1,368 Common Stock (98,051,400 shares) 490 487 483 Goodwill and other assets 1,280 1,280 1,280 Additional Paid-in capital 2,439 2,222 1,982 2023 & 2021 Retained earnings 270 179 98 Average Fixed Assets 1,766 1,450 Treasury stock -95 -15 0 1,766 Total stockholders' equity 3,104 2,873 2,563 2021 & Total assets 4,118 3,767 3,328 Total liabilities and equity 4,118 3,767 3,328 2022 & Average Total Assets 2021 & 2022 2022 & 2023 3,547.5 3,942.5 Number of shares (actual) 98,051,400 97,302,600 96,521,200 2023 2022 2021 Estimate competitor Average Net Sales 2022 and 2023 Average 2021 and 2022 Sales (net sales) 2,013 2,450 2,733 7,564 2232 2592 Average annual income 2021 & 2022 3 Cost of goods sold 1,400 1,689 1,765 3,883 1545 1727 2022 & 2023 3 Gross profit 613 761 968 3,681 687 865 Selling, general, and administrative 125 98 91 105 112 95 expenses Earnings before Interest, taxes, 488 663 877 depreciation, and amortization (EBITDA) 3,576 576 770 Depreciation and amortization 174 218 259 743 196 239 Earning before interest and taxes (EBIT) 314 445 618 Operating income (loss) 2,833 380 532 Interest expense 141 137 125 207 139 131 Earnings before taxes (EBT) 173 308 493 2,626 241 401 Taxes (34%) 59 105 168 893 82 137 Net earnings (loss)/Net Income 114 203 325 1,733 159 264 114000000 203000000 325000000 3,767 Note: Assets on Jan 1, 2023 Assets on Dec 31, 2022 4,118 Average Total Assets 2023 Jan 1, 2023 Dec 31, 2023 Sub-total (A) Average (A/2) 7,885 3,942.5 Instructions Tab 1_BalanceSheet & Inc.State Tab 2 Ratio Analysis Tab 3 Common-size Analysis T 2023 2022 2021 Industry Benchmark Notes Liquidity Ratios Current ratio Quick ratio Cash ratio 1.50 1.85 1.41 1.92 CA/CL 7.18 1.08 0.69 1.25 CA - INV/CL 3.59 0.71 0.35 0.86 Cash&Cash Equivalents/ CL Efficiency Ratios Inventory turnover ratio 3.47 4.24 5.06 5.37 CGS/INV Days' sales in inventory 105.33 86.01 72.17 50.6 365/INV turnover Accounts receivable turnover 20.97 19.60 17.41 18.12 Days' sales outstanding 33.45 25.18 20.97 21.5 Sales / Ave AR 12 month DSO is (Ave AR/Sales)*365 Total asset turnover (TAT) 0.51 0.69 0.82 0.9 Net Sales/Ave Total Assets Fixed assets turnover 1.14 1.69 2.00 2.75 Net Sales / Ave Net Fixed Assets Leverage Ratios Total debt ratio 0.26 0.25 0.23 0.21 Tot Debt/Tot Assets Debt to equity ratio 0.19 0.17 0.13 0.27 Tot Debt/Tot Equity Equity multiplier (EM) 1.32 1.31 1.30 1.23 Times interest earned 2.23 3.25 4.94 5.5 Average Total Assets/Average Shareholders' Equity EBIT/Int Exp Cash coverage 3.46 4.84 7.02 9.3 EBITDA/ Int Exp Profitability Ratios Profit Margin (PM) 0.06 0.08 0.12 14.00% NI/Net Sales Gross profit margin 0.30 0.31 0.35 48.00% GM/Sales Operating profit margin 0.16 0.18 0.23 24.00% EBIT return on assets (EROA) 0.08 0.12 0.19 19.00% EBIT/Sales EBIT/Tot Assets ROA 0.03 0.05 0.10 17.00% NI / Tot Assets ROE 0.04 0.07 0.13 15.00% NI / Ave. SE Market Value ratios (*) Earning per share (EPS) 1.16 2.09 3.37 n.a. NI/Outstanding shares Price-earnings ratio 55.91 32.59 21.09 n.a. Price/EPS DuPont Equation PM 0.06 0.08 0.12 14.00% TAT** 0.51 0.69 0.82 0.9 EM 1.32 1.31 1.30 1.23 ROE 0.04 0.07 0.13 15.00% NI/Net Sales Net Sales/Ave Total Assets Average Total Assets/Average Shareholders' Equity NI/ Ave. SE (*) Price per share 65 68 71 98,051,400 97,302,600 96,521,200 Instructions Tab 1_Balance Sheet & Inc.State Tab 2 Ratio Analysis Tab 3 Common-size Analysis Ta 227 22700 2023 2022 % of Assets change % of Assets change 2021 % of Assets 2023 % of Assets change % of A Liabilities and Assets: Cash and marketable securities Accounts receivable Stockholders' Equity: 5.537 -37.705 9.716 -4.638 5.078 Accounts payable and accruals 8.766 -0.165 4.565 3.867 4.805 -0.087 4.718 Notes payable 3.4 -0.665 Inventory 9.811 1.508 10.565 -0.079 10.487 Accrued taxes 1.36 0.976 Other current assts 0.437 80 Total current 0.265 -0.115 0.15 13.526 0.145 1 liabilities Total current assets 20.35 -12.251 25.352 -4.919 20.433 0 Property, plant, and equipment 97.135 19.119 89.143 0.281 89.423 Long-term debt 11.098 -1.037 Less: Accumulated depreciation -48.567 9.529 -48.474 0.156 -48.317 Total liabilities 24.624 -0.891 2 Common Stock Net property, plant, and equipment 48.567 30.548 40.669 0.437 41.106 11.899 1.029 1: (98,051,400 shares) Goodwill and other assets 31.083 0 33.979 4.482 38.462 Additional Paid-in capital 59.228 -0.242 5: Retained earnings 6.557 -1.805 Treasury stock -2.307 1.909 Total stockholders' 75.376 0.891 7 equity Total liabilities and Total assets 100 0 100 0 100 100 0 equity 2023 2022 2021 % of Sales change % of Sales change % of Sales Net sales 100 0 100 0 100 Cost of goods sold 69.548 -0.609 68.939 -4.358 64.581 Gross profit 30.452 0.609 31.061 4.358 35.419 Selling, general, and administrative 6.21 -2.21 -0.67 3.33 expenses Earnings before Interest, taxes, depreciation, and amortization 24.242 2.819 27.061 5.028 32.089 (EBITDA) Depreciation and amortization 8.644 0.254 8.898 0.579 9.477 Earning before interest and taxes 15.599 2.565 18.163 4.449 22.613 (EBIT) Operating income (loss) Interest expense 7.004 -1.413 5.592 -1.018 4.574 Earnings before taxes (EBT) 8.594 3.977 12.571 5.467 18.039 Taxes 2.931 1.355 4.286 1.861 6.147 Net earnings (loss)/Net Income 5.663 2.623 8.286 3.606 11.892 Instructions Tab 1_BalanceSheet & Inc.State Tab 2 Ratio Analysis Tab 3 Common-size Analysis T 227 22700 2023 2022 % of Assets change % of Assets change 2021 % of Assets 2023 2022 % of Assets change % of Assets change 2021 % of Assets Liabilities and Stockholders' Equity: 5.537 -37.705 9.716 -4.638 5.078 Accounts payable and 8.766 -0.165 8.601 0.774 9.375 accruals 4.565 3.867 4.805 -0.087 4.718 Notes payable 3.4 -0.665 2.734 -0.901 1.833 9.811 1.508 10.565 -0.079 10.487 Accrued taxes 1.36 0.976 2.336 0.939 3.275 Total current 0.437 80 0.265 -0.115 0.15 13.526 0.145 13.671 0.812 14.483 liabilities 20.35 -12.251 25.352 -4.919 20.433 0 0 97.135 19.119 89.143 0.281 89.423 Long-term debt 11.098 -1.037 10.061 -1.557 8.504 -48.567 9.529 -48.474 0.156 -48.317 Total liabilities 24.624 -0.891 23.732 -0.746 22.987 Common Stock 48.567 30.548 40.669 0.437 41.106 11.899 1.029 12.928 1.585 14.513 (98,051,400 shares) 31.083 0 33.979 4.482 38.462 Additional Paid-in capital 59.228 -0.242 58.986 0.569 59.555 Retained earnings 6.557 -1.805 4.752 -1.807 2.945 Treasury stock -2.307 1.909 -0.398 0.398 Total stockholders' 75.376 0.891 76.268 0.746 77.013 equity Total liabilities and 100 0 100 0 100 100 0 100 0 100 equity 2023 2022 2021 % of Sales change 100 0 % of Sales 100 change % of Sales 0 100 69.548 -0.609 68.939 -4.358 64.581 30.452 0.609 31.061 4.358 35.419 6.21 -2.21 -0.67 3.33 24.242 2.819 27.061 5.028 32.089 8.644 0.254 8.898 0.579 9.477 15.599 2.565 18.163 4.449 22.613 7.004 -1.413 5.592 -1.018 4.574 8.594 3.977 12.571 5.467 18.039 2.931 1.355 4.286 1.861 6.147 5.663 2.623 8.286 3.606 11.892