The Toro Company CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in thousands, except per share data) Fiscal years ended October 31 2011 2010 2009 Net sales 51.883,953 51,690,378 51,523,447 Cost of sales 1.247,306 1,113,987 1,012.472 Gross profit 636,647 576,391 510,975 Selling, general, and administrative expense 452,160 425,125 395,778 Operating earnings 184,487 151.266 115,197 Interest expense (16,970) (17,113) (17.578) Other Income (expense), net 7.309 7,115 (1.831) Earnings before income taxes 174,826 141,268 95,78 Provision for income taxes 57,168 48,031 32,951 Net earnings $ 117,658 $ 93,237 $ 62.837 Basie net earnings per share of common stock S 3.76 $ 2.83 S 1.76 Diluted net earnings per share of common stock s 3.70 5 2.79 5 1.73 Weighted average number of shares of common stock outstanding - Basic 31,267 32,982 35,788 Weighted average number of shares of common stock outstanding - Diluted 31,797 33,437 36,240 The financial statements should be read in conjunction with the Notes to Consolidated Financial Statement 41 Red Company Formula Sheet Vertical Analysis of the Income Statement Net Profit Margin - Profitability Accounts Receivable Turnover Ratio Any Line on Income Statement Net Sales Net Income Net Sales Net Sales Average Accounts Receivable, Net Vertical Analysis of the Balance Sheet Total Assets Turnover Ratio - Efficiency Number of Days Soles in Receivables Any Asset Line on Balance Sheet Total Assets Net Sales Average Total Assets 365 Accounts Receivable Turnover Ratio Any Liabilities or Stockholders' Equity Line Total Liabilities and Stockholders' Equity Assets to Equity Ratio - Leverage Inventory Turnover Ratio Horizontal Analysis Average Total Assets Average Total Stockholders' Equity Cost of Goods Sold Average Inventory Current Year Amount - Prior Year Amount Prior Year Amount Return on Equity Number of Days Sales In Inventory Net Income Average Total Stockholders' Equity 365 Inventory Turnover Ratio Working Capital Current Assets Less: Current Liabilities Return on Assets Dividend Payout Net Income Average Total Assets Total Cash Dividends Declared Net Income Current Ratio Current Assets Current Liabilities Free Cash Flow Cash Flow to Net Income Ratio Net Cash Provided by Operating Activities Net Income Net Cash Provided by Operating Activities Less: Net Cash Paid to Purchase Prop, Plant, Equip Less: Cash Dividends Paid Question 34 4 pts Calculate Working Capital for fiscal year 2011. Show your answer in thousands of dollars. O $216,690 O $511,583 O $517,339 O $173,802 O None of the above D Question 35 4 pts Calculate the Cash Flow to Net Income Ratio for fiscal year 2010. Round the decimal answer to two decimal places. 02.08 0.97 0 4.00 0.79 O None of the above Question 36 4 pts Calculate the Dividend Payout % for fiscal year 2011. Round the percentage answer to two decimal places. 0 25.44% 0 34.06% 20.16% 21.22% None of the above D Question 37 4 pts Calculate the fiscal 2011 Number of Days Sales in Inventory. Round all average calculations to whole numbers. Round all decimal results to two decimal places. Use 365 days in the year. 0 40.42 days 61.08 days 68.35 days 0 61.04 days O None of the above The Toro Company CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in thousands, except per share data) Fiscal years ended October 31 2011 2010 2009 Net sales 51.883,953 51,690,378 51,523,447 Cost of sales 1.247,306 1,113,987 1,012.472 Gross profit 636,647 576,391 510,975 Selling, general, and administrative expense 452,160 425,125 395,778 Operating earnings 184,487 151.266 115,197 Interest expense (16,970) (17,113) (17.578) Other Income (expense), net 7.309 7,115 (1.831) Earnings before income taxes 174,826 141,268 95,78 Provision for income taxes 57,168 48,031 32,951 Net earnings $ 117,658 $ 93,237 $ 62.837 Basie net earnings per share of common stock S 3.76 $ 2.83 S 1.76 Diluted net earnings per share of common stock s 3.70 5 2.79 5 1.73 Weighted average number of shares of common stock outstanding - Basic 31,267 32,982 35,788 Weighted average number of shares of common stock outstanding - Diluted 31,797 33,437 36,240 The financial statements should be read in conjunction with the Notes to Consolidated Financial Statement 41 Red Company Formula Sheet Vertical Analysis of the Income Statement Net Profit Margin - Profitability Accounts Receivable Turnover Ratio Any Line on Income Statement Net Sales Net Income Net Sales Net Sales Average Accounts Receivable, Net Vertical Analysis of the Balance Sheet Total Assets Turnover Ratio - Efficiency Number of Days Soles in Receivables Any Asset Line on Balance Sheet Total Assets Net Sales Average Total Assets 365 Accounts Receivable Turnover Ratio Any Liabilities or Stockholders' Equity Line Total Liabilities and Stockholders' Equity Assets to Equity Ratio - Leverage Inventory Turnover Ratio Horizontal Analysis Average Total Assets Average Total Stockholders' Equity Cost of Goods Sold Average Inventory Current Year Amount - Prior Year Amount Prior Year Amount Return on Equity Number of Days Sales In Inventory Net Income Average Total Stockholders' Equity 365 Inventory Turnover Ratio Working Capital Current Assets Less: Current Liabilities Return on Assets Dividend Payout Net Income Average Total Assets Total Cash Dividends Declared Net Income Current Ratio Current Assets Current Liabilities Free Cash Flow Cash Flow to Net Income Ratio Net Cash Provided by Operating Activities Net Income Net Cash Provided by Operating Activities Less: Net Cash Paid to Purchase Prop, Plant, Equip Less: Cash Dividends Paid Question 34 4 pts Calculate Working Capital for fiscal year 2011. Show your answer in thousands of dollars. O $216,690 O $511,583 O $517,339 O $173,802 O None of the above D Question 35 4 pts Calculate the Cash Flow to Net Income Ratio for fiscal year 2010. Round the decimal answer to two decimal places. 02.08 0.97 0 4.00 0.79 O None of the above Question 36 4 pts Calculate the Dividend Payout % for fiscal year 2011. Round the percentage answer to two decimal places. 0 25.44% 0 34.06% 20.16% 21.22% None of the above D Question 37 4 pts Calculate the fiscal 2011 Number of Days Sales in Inventory. Round all average calculations to whole numbers. Round all decimal results to two decimal places. Use 365 days in the year. 0 40.42 days 61.08 days 68.35 days 0 61.04 days O None of the above