SCORE 2017 Income Statement For the Years ended 2015 to 2019 and pro forma 2020 Dollars in Thousands 2020 2019 2018 Sales $ 59,841 $ 56,745 $ 51,407 $ Cost of Sales 28,232 25,920 23,343 Gross Operating Profit 31,609 30,825 28,064 Selling, General & Administration Expenses 18,664 18,010 16,504 Depreciation & Amortization 2,895 1,895 1,733 EBIT 10,050 10,920 9,827 Other Income, Net 346 346 152 Interest expense 1,521 834 629 Pre-tax Income 8.875 10,432 9,350 Income Taxes 2,662 3,130 2,805 Total Net Income $ 6,212 $ 7,302 $ 6,545 S 43,396 $ 20,438 22,958 13,383 1.703 7,872 238 561 7,549 2,265 5,284 $ 2016 42,401 $ 20,005 22,396 12,571 1,693 8,132 308 603 7.837 2,351 5,486 $ 2015 39,244 Trend 19,831 Avg % of Sales of Prior 5 years 19,413 12,406 Avg % of Sales of Prior 5 years 2,271 Calculate (see Assumptions) 4.736 674 Same as Prior Year 794 Calculate (see Assumptions) 4,616 1,385 3,231 POSSIBL Karl Hoffman: 20 Please note: think about what this mean, "Avg % of Sales of Prior 5 Years". A common mistake here is to take the 4 Average Cost of Sales / Average Sales. That is NOT what 2. ll this means! You MUST calculate each year's individual % of Sales, and then calculate the average of those percentages. You can Ildo this in one formula: for example, average(x1/y1, x2/42, x3/y3....). That will give the average. Next you need to use that average...and that's what I'm testing you on. What do you do with that average. Similar technique for the others. $ ASSUMPTIONS Tax Rate Additional Depreciation (to add to last year's) Additional Interest Exp (to add to last year's) Additional Debt Rate Basic EPS from Operations Dividends per Common Share Preferred Dividends 30% $1,000 Hint: Look for additional depreciation on the Balance Sheet notes and linkit here. 687 Hint: What is the change in Long Term Debt from the Balance Sheet? Add the new expense to Last Year's expense 12.00% To be applied to Additional Debt as Additional Interest Expense. 1.13 136 $ 1.03 136 0.93 131 $ 0.82 125 $ 0.76 124 $ 0.7 Assume increase of dividends by 10% 121 Same as previous year $ $ SCORE 2017 Income Statement For the Years ended 2015 to 2019 and pro forma 2020 Dollars in Thousands 2020 2019 2018 Sales $ 59,841 $ 56,745 $ 51,407 $ Cost of Sales 28,232 25,920 23,343 Gross Operating Profit 31,609 30,825 28,064 Selling, General & Administration Expenses 18,664 18,010 16,504 Depreciation & Amortization 2,895 1,895 1,733 EBIT 10,050 10,920 9,827 Other Income, Net 346 346 152 Interest expense 1,521 834 629 Pre-tax Income 8.875 10,432 9,350 Income Taxes 2,662 3,130 2,805 Total Net Income $ 6,212 $ 7,302 $ 6,545 S 43,396 $ 20,438 22,958 13,383 1.703 7,872 238 561 7,549 2,265 5,284 $ 2016 42,401 $ 20,005 22,396 12,571 1,693 8,132 308 603 7.837 2,351 5,486 $ 2015 39,244 Trend 19,831 Avg % of Sales of Prior 5 years 19,413 12,406 Avg % of Sales of Prior 5 years 2,271 Calculate (see Assumptions) 4.736 674 Same as Prior Year 794 Calculate (see Assumptions) 4,616 1,385 3,231 POSSIBL Karl Hoffman: 20 Please note: think about what this mean, "Avg % of Sales of Prior 5 Years". A common mistake here is to take the 4 Average Cost of Sales / Average Sales. That is NOT what 2. ll this means! You MUST calculate each year's individual % of Sales, and then calculate the average of those percentages. You can Ildo this in one formula: for example, average(x1/y1, x2/42, x3/y3....). That will give the average. Next you need to use that average...and that's what I'm testing you on. What do you do with that average. Similar technique for the others. $ ASSUMPTIONS Tax Rate Additional Depreciation (to add to last year's) Additional Interest Exp (to add to last year's) Additional Debt Rate Basic EPS from Operations Dividends per Common Share Preferred Dividends 30% $1,000 Hint: Look for additional depreciation on the Balance Sheet notes and linkit here. 687 Hint: What is the change in Long Term Debt from the Balance Sheet? Add the new expense to Last Year's expense 12.00% To be applied to Additional Debt as Additional Interest Expense. 1.13 136 $ 1.03 136 0.93 131 $ 0.82 125 $ 0.76 124 $ 0.7 Assume increase of dividends by 10% 121 Same as previous year $ $