LAKELAND CORPORATION Balance Sheet December 31, Year 5 and Year 4 LAKELAND CORPORATION Statement of Income and Retained Earnings For Years Ended December 31, Year 5 and Year 4 Year 5 Year 4 Year 5 Year 4 $ 1,387,000 $ 1,610,000 510,000 Revenues Net sales Royalties Interest $48,400,000 70,000 30,000 $41,700,000 25,000 4,075,000 7.250,000 125,000 13,570,000 3,669,000 7,050,000 218,000 12,324,000 Total revenues $48,500,000 $41,725,000 Assets Current assets Cash Marketable securities ..... Accounts receivable, less allowance for bad debts Year 5, $125,000; Year 4, $110,000 Inventories, at lower of cost or market Prepaid expenses Total current assets Plant and equipment, at cost Land and buildings Machinery and equipment Total plant and equipment Less: Accumulated depreciation Total plant and equipment-net Long-term receivables Deferred charges Total assets Costs and expenses Cost of sales Selling, general, and administrative Interest on 5% sinking fund debentures Provision for federal income taxes $31,460,000 12,090,000 275,000 2,315,000 13,500,000 9,250,000 22,750,000 13,470,000 9,280,000 250,000 25,000 $23,125,000 13,500,000 8,520,000 22,020,000 12,549,000 9,471,000 250,000 75,000 $22,120,000 $29,190,000 8,785,000 300,000 1,695,000 $39.970,000 $ 1,755,000 Total costs and expenses $46,140,000 Net income $ 2,360,000 7,965,000 $10,325,000 6,760,000 $ 8,515,000 50,000 50,000 $ 2,950,000 1,575,000 875,000 500,000 5,900,000 $ 3,426,000 1,644,000 750,000 500,000 6,320,000 Retained earnings, beginning of year Subtotal Dividends paid Preferred stock, $1.00 per share in cash Common stock Cash-$1.00 per share Stock(10%)50,000 shares at market value of $50 per share. Total dividends paid Retained earnings, end of year 525,000 500,000 2,500,000 $ 3,075,000 $ 7,250,000 $ 550,000 $ 7,965,000 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued expenses Federal taxes payable Current maturities on long-term debt Total current liabilities Other liabilities 5% sinking fund debentures, due January 1, Year 16 ($500,000 redeemable annually) Deferred taxes on income, due to depreciation Total other liabilities Shareholders' equity Preferred stock, $1 cumulative, $20 par, preference on liquidation $100 per share (authorized: 100,000 shares; issued and outstanding: 50,000 shares) Common stock, $1 par (authorized: 900,000 shares; issued and outstanding: Year 5, 550,000 shares; Year 4,500,000 shares) ...... Capital in excess of par value on common stock Retained earnings. Total shareholders' equity Total liabilities and shareholders' equity 5,000,000 350,000 5,350,000 5,500,000 210,000 5,710,000 1,000,000 1,000,000 550.000 3,075,000 7,250,000 11.875,000 $23,125,000 500,000 625,000 7,965,000 10,090.000 $22,120,000 (8) Using the financial statements above conduct the following: 1. Horizontal and Vertical Analysis 2. Ratio Analysis for Year 4 and 5: Net Profit Margin. (Hint: Total Revenues includes other revenues) Current Ratio and Quick Ratio Debt to Equity Ratio 3. Du-Pont Analysis for Year 4 and Year 5 Return on Assets . Return on Equity 4. Sustainable Growth Rate after Year 5