Question 14 1 pts For questions 6 - 16 use the Westfield Corporation case and Excel documents in Canvas Files. Note: remember to check the comments in the Excel documents (red triangle in upper right hand corner of a cell - the comment will appear). 14. What was the company's margin of safety in units for year 8? 227,967 307,359 O 793,768 1,010,000 Question 15 1 pts For questions 6 - 16 use the Westfield Corporation case and Excel documents in Canvas Files. Note: remember to check the comments in the Excel documents (red triangle in upper right hand corner of a cell - the comment will appear). .5. What was the company's margin of safety as a percentage for year 8? 14.66% 22.57% 20.00% 72.18% Question 16 1 pts For questions 6 - 16 use the Westfield Corporation case and Excel documents in Canvas Files. Note: remember to check the comments in the Excel documents (red triangle in upper right hand corner of a cell - the comment will appear). .6. What was the company's margin of safety in sales revenue for year 8? $26,397,197 $24,360,500 O $1,488,,355 $5,498,165 Income State COGS Cont Inc St BalSheetWACC CashFlowSt Exhibt 1 Westfield Corporation Functional Formation Statements Years WEN 800.000 $23.00 # of Games Sold Average Price per Game Preforma war 1.258.682 $24.42 890,000 S24.00 1.000.000 52415 Sales Revenue less Returns & Allowances Net Sales Revenue 518,400.000 100.00% 30.000 0.16% 18.370.000 99.84% 521360,000 10000% 29.000 0.14% 21.331,000 99.86% 524 391.500 100.00% 31.000 0.13% 24.360.500 99.87% 530,762,309 100.00! o 0.00 30.782.309 100.00 51615 less: Cost of Goods Sold(sch 1) Gross Margin 9.766.440 8.603 560 53,08% 46.76% 19.800.000 10.530,320 50 56% 49 30% 12582618 15.772 882 30.782.300 0.001 100.000 5.358.000 29.12% 6,194,000 29 ODS 7.000.000 28.703 8.781.000 28.54 less: Marketing Expenses (Sch 7) G&A Expense (Sch) Net Operating income 1.845.000 10.03% 2004.000 9.35% 222.000 0.00 1,400.560 7.61% 2.332.320 10.92% 2.580.882 10.50% 21.981.309 71.46 less: Other Expenses 204000 1.115 188 DOO 0.86% 156000 0.000 Net Income Before Income Taxes $1.196560 6.50% $2152320 100 22042 9. 21.901.309 71.43 less Allowance for Income Taxes Net Income Aller Taxes 454 683 $741.667 2.47% 4,03% 817 882 $1.334 439 3.33% 6259 913.855 $14910ZT 3.755 6.11% 8.352.89 13.628.412 27.154 44 30+ Schedule 7. Marketing Expenses Proforma 51210.000 312.000 30.000 YEN 4.589 1014 4.96% 1289 0.125 0.00% 0.101 Advertising Allocated Overhead Depreciation Distribution Expansion Costs Other Expenses Research and Development Salanes & Commissions Sales Promotion Supplies & Equipment Training-Sales Reps Travel Website & IT Year $1.000.000 300.000 30.000 0 80.000 600.000 2.000.000 178.000 100.000 200.000 700.000 170.000 Yes 5.43% 1.63% 0.16% 0.00% 0.43% 3.26% 10.87% 0.97% 0.54% 1.09% 3.80% 0.92% $1,180.000 295,000 30.000 50.000 102.000 550.000 2.490,000 300.000 30.000 160.000 840,000 167.000 Y? 5.52% 1.35% 0.14% 0.23% 0.48% 2.57% 11.56% 1405 0.14% 0.75% 3.93% 0.78% 238% 11.899 103.000 500.000 2.000.000 200.000 25.000 600.000 1.000.000 170.000 $1.410.000 312.000 30.000 100.000 103.000 620.000 3.746.000 220,000 30,000 520,000 1,520,000 120,000 0.33 0339 2.024 12.18 0.72 0.101 1.69 0.10% 494 0.702 055 Total Marketing Expenses $5.358.000 29.12% 58.194.000 29.00% 2019.000 $8.781.000 2854 Prelom Yare Schedule 5 - General Administrative Expenses Year Allocated Overhead $150.000 Bad Debts 145.000 Board Fees & Expenses 200.000 Depreciation 30.000 Other Expenses 120.000 Professional & Consulting Fees 180.000 Salaries 1.000.000 Supplies & Equipment 20.000 WS 0.62% 0.73% 1.115 0.001 0.00 0.001 Y6% 0.82% 0.79% 1.00% 0.16% 0.65% 0.98% 5.43% 0.11 0.001 $152.000 175,000 232.000 30,000 $15.000 185.000 1.100.000 15,000 0.71% 0.82% 1.09% 0.14% 054% 0.87% 5.15% 0.07% 5151000 179.000 271.000 30.000 130.000 213.000 1 220.000 8.000 0.53% 0.87% 5.00% 0.00% 0.00 0.004 0.00 0.007 Total & A Expenses $1.845.000 10.03% $2.004000 9.38% $2202.000 $0 0.000 Income State COGS Cont Inc St BalSheetWACC CashFlowSt Schedule 1 Cost of Goods Manufactured Westfield Corporation Direct Labor (DL) (Sch3) Direct Materials Manufacturing Overhead (Sch 2) Cont of Goods Manufactured YEN $2.365.440 24.22% 4,360.000 44.64% 3.041.000 31.145 $2.938.880 5.028.500 2.833,00 YS 27 21% 46.56% 25239 Y 33.212.348 25.92% 6.000.000 3145 3.264 779 25. 50 0 O $9.765 440 100.00% $10.800.680 100.00% $12587 618 500.00% $ $18,370,000 300.000 12.121 $21331,000 890.000 11.125 $24.360.500 2010.000 11.609 $30,782,309 1.259.682 1160990077 Sales Revenue Units Produced Units Produced per DL Employee Per Unit Data Direct Labor per unit Direct Materials per unit Manufacturing Overhead per unit $32305 50.0000 52 9568 $5.4500 $3.2013 $33021 $5.6500 $3.1835 S60000 $32324 50 0000 As a % of Sales Revenue Direct Labor Direct Materials Manufacturing Overhead Indirect Labor 12.88% 23.73% 16.55% 4.57% 13.78% 23.57% 13.28% 4.10% 13.39% 24 88% 13.40% 4.76% 0.00% 0.00% 0.00% 0.00% Pro Year 50 Schedule 2 Manufacturing Overhead Appraisal Costs Depreciation Indirect Labor Indirect Material Insurance Maintenance Miscellaneous Overtime (1.6Xregularrate) Prevention Costs Rent Repair Replacements in Field Rework Scrap Taxes Utilities | Total Manufacturing Overhead Your $175.000 340.000 840.000 40.000 530.000 361.000 40.000 230.000 320,000 110.000 55.000 80.000 50.000 100.000 210.000 $3.041.000 Year $156,000 340,000 874,000 44.300 137.000 364.000 29.000 25.000 332.000 80.000 20,000 77.000 31.000 104.000 220.000 52833.300 $127.000 300.000 1150 000 51.000 142.000 375.000 33.000 114 270 350.000 O 0 0 18.000 85.000 36.00 115 000 238 000 53254779 $9 Prolone 2.000 Schedule 3 Regular Time Direct Labor (DL) Hours worked in year Average wage rate Average wages per DL employee Plus 28% benefits Total cost per DL employee Number of DL employees Number of shifts Total direct labor hours Total direct labor cost 2.000 $14.00 $28.000 27 840 $35.840 66 2.000 51435 528,700 S8.036 $36,736 80 242 160.000 $2.938.880 2.000 $1465 $29 300 $8.204 $37504 87 2.54 174.000 53.252.848 200 100 50 3.29 217.000 132.000 $2 365.440 Income State COGS Cont Inc St BalSheetWACC CashFlowSt Exhibit 2 Westfield Corporation Contribution Format Income Statement Yr6% Year 7 Yr 7% 100.00% $21,331,000 100.00% Year 6 $18,370,000 Year 8 $24,360,500 Yr 8 % 100.00% Proforma Year 9 $30,762,309 Yr 9% 100.000 Net Sales Revenue less: Variable Expenses Variable Production Variable Marketing Variable Administrative Total Variable Expenses 7,663,440 1,600,000 8,554,680 2,090,000 0 10,644,680 10,064,618 2,950,000 0 13,014,618 41.32% 12.11% 0.00% 53.43% 0.00 0.009 0.009 0.00 0 0 9,263 440 50.43% 49.90% 9,106,560 49.57% 10,686,320 50.10% 11,345,882 46.57% 30,762,309 100.00 Contribution Margin less: Fixed Expenses Fixed Production Fixed Marketing Fixed Administrative Total Fixed Expenses 2,103,000 3,758,000 1.845.000 7.706.000 2.246,000 4,104,000 2,004,000 8.354.000 2,523,000 4,060,000 2,202.000 8,785.000 10.36% 16.67% 9.04% 36.06% 0.00 0.00 0.00 0.009 41.95% 39.16% $0 Net Operating Income $1.400,560 7.62% $2,332 320 10.93% $2,560 882 10.51% $30,762,309 100.000