Simpson Company results of operation for 2018 & 1017 Net Sales $780.000 $624.000 THIS IS OUR REVENUE Utilities Expense Salaries & Wages Expense Interest Expense Cost of Goods Sold Selling expense Insurance Expense Depreciation Expense $5,880 $105.000 $9.920 $440,000 $46,000 $10.000 $10.000 $4,760 $95.000 $7 200 $405,600 $34.000 $8.000 $8,000 From the Data above, the Comparative Statement of Operations was prepared Simpson Company Statement of Operations For the years ending December 31 TREND ANALYSIS-a percentage change, over time over accounts or class of accounts 2018 Net Sales Cost of Goods Sold Gross Profit (Gross Margin) Gross Profit % - GP % $780.000 5440,000 $340,000 43.6% 2017 $624.000 $405,600 $218.400 35.0% Trend Analysis $ % $156,000 $34,400 $121,600 25.0% Percentage Change = Current year prior year 8.5% Prior year 55.7% GROSS PROFIT: The income an entity makes on the difference between Selling Price of merchandise sold & the cost of that merchandise GROSS PROFIT PERCENT: GP% - Gross Profit Net Sales Selling, General & Admin. - SGA Selling expense Insurance Expense Utilities Expense Salaries & Wages Expense Depreciation Expense Total SGA Expenses Total SGA % EBITAD Earnings before Income tax, interest EBITAD % $46000 $10,000 $5,880 $105,000 $10.000 $176,880 22.7% $34.000 $8,000 $4,760 $95.000 $8.000 $149,760 24.0% $12,000 $2.000 $1,120 $10,000 $2,000 $27, 120 35.3% 25.0% 23.5% 10.5% 25.0% 18.1% SGA % - Total SGA Net Sales 137.6% EBITAD Earnings before interest, depreciation EBITAD%- EBITAD 137.6% Net Sales 149.3% NI % = Net Income Net Sales $94.480 $163,120 20.9% $68,640 11.0% Interest Expense Net income before Income Tax Net Income before Income Tax Expense - NI % $9.920 $153 200 19.6% $7.200 $61 440 9.8% $2.720 $91,760 Simpson Company Balance Sheet AT December 31 2018 2017 Current Assets Cash Short term Investment Accounts Receivable Inventory Prepaid Insurance Total Current $23.100 $106 200 $44.800 $114.400 $2,000 $290.500 $21,600 $83,800 $33,000 $73.000 $1,000 $212.400 $1,500 $22.400 $11,800 $41,400 $1,000 $78,100 6.9% 26.7% 35.8% 56.7% 100.0% 36.8% Property. Plant & Equipment $485,300 $439 600 $45.700 10.4% Total Assets $775,800 $652,000 S123.800 19.0% Liabilities & Stockholders Equity Current Liabilities Accounts Payable Salaries & Wages Payable $138 200 $25,300 $163,500 $132.000 $24.000 $156,000 $6.200 $1300 $7,500 4.7% 5.4% 4.8% Long Term Liabilities Bonds Payable Total Liabilities $132.000 $295,500 $120.000 $276.000 $12.000 $19,500 10.0% 7.1% Stockholders Equity Common stock Retained Earning Total Stockholder's Equity $150,000 $330,300 $480,300 $130,000 $246,000 $376,000 $20,000 $84.300 $104,300 15.4% 34.3% 27.7% Total Liabilities & Stockholders equity $775,800 $652,000 $123.800 19.0% Simpson Company Statement of Retained Earnings For the years ending December 31 Retained Earning, 01/01/2017 Net income Flow from 2017 Flow from Statement of Operations 2018 $246,000 $153,200 $399,200 $68,900 $330.300 Less Dividend Cash Payment to Shareholders ADDITIONAL INFORMATION Notes: Dividends Issued Equipment Purchased - Gross $ $68,900 $55,700 Simpson Company Statement of Cash Flows For the years ending December 31 Cash Flow from Operations Net Income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Change in Current Assets/Current Liabilities Short Term Investments Accounts Receivable Inventory Prepaid Expenses Salaries & Wages Payable Accounts Payable $0 $0 Net Cash provided by Operating Activities Cash Flow from Investing Activities Purchase Additional Equipment Net Cash provided by Investing Activities $0 Cash Flow from Financing Activities Issuance of Stock Issuance of Additional Bonds Payment of Cash Dividend $0 $0 Net Cash Flow Cash at the beginning of the year Cash at end of the year $0