Historical Analysis of the Financial Statements of Sunlight Ltd (in $ million)
Balance Sheet
Recent year
One year
ago
Two year
ago
Three years
ago
$val
ue
$
valu
e
$
Value
$
valu
e
% of
total
% of
total
% of
total
Assets
Cash
1.5
2.1
2.7
2.2
Accounts Receivables
8.3
7.4
6.2
4.1
Inventories
5.2
4.5
3.4
2.3
Total Current assets
15.0
14.0
12.3
8.6
Fixed assets Gross
19.4
20.2
21.5
22.4
Less: Accumulated
Depreciation
10.1
9.2
8.0
5.1
Fixed Assets, net
9.3
11.0
13.5
17.3
Other assets
3.7
4.0
4.2
6.1
Total assets
28.0
29.0
30.0
32.0
Accounts payable
1.3
1.2
0.8
1.0
Notes payable
3.9
3.4
3.2
2.7
Taxes payable
0.1
0.2
0.1
0.8
Total current Liabilities
5.3
4.8
4.1
4.5
Long Term Debt
12.2
13.2
12.5
11.4
Other Liabilities
0.0
0.4
3.5
6.1
Total Liabilities
17.5
18.4
20.1
22.0
Common Stock
1.0
1.0
1.0
1.0
Paid-in-surplus
3.0
3.0
3.0
3.0
Retained Earnings
6.5
6.6
5.9
6.0
Total Networth
10.5
10.6
9.9
10.0
Liabilities
+Shareholders
Equity
28.0
29.0
30.0
32.0
Liabilities & Equity
%of
total
Sunlight LTd Income Statement(in $ millions)
Recent year
Previous Year
Two years
Three years
ago
Income Statement
Items
$
Valu
e
$
valu
e
$
valu
e
$
valu
e
Net sales
32.0
30.0
28.0
31.0
Less COGS
18.0
16.0
15.0
14.0
Gross profit
14.0
14.0
13.0
17.0
Less SG&A
9.0
9.0
8.0
11.0
Less: Depreciation
3.0
3.0
3.0
2.0
Net Operating
Income(EBIT)
2.0
2.0
2.0
4.0
Less Interest
Expense
2.0
1.0
2.0
2.0
Net Income Before
Taxes
0.0
1.0
0.0
2.0
Less Income taxes
0.1
0.3
0.1
0.2
Net Income after
taxes
(0.1)
0.7
(0.1)
1.8
% of
Total
Comment on the following
1. Control over expenses
Depreciation
)
Net sales
A.
B.
Interest Expense on Borrowed Funds
Net Sales
C. *COGS/Net Sales
D. *SG&A/Net sales
E. Taxes/Net sales
% of
total
% of
total
% of
total
2. Operating Efficiency
A. *Inventory Turnover Ratio=
COGS
Average Inventory
B. *Average Collection Period=
Recievables
{ Account
} x {365 }
Annual Sales
C. *Turnover of Fixed Assets= Net Sales/Net Fixed Assets
3. Marketability of Product line
A. *Gross profit Margin(GPM)=
Net sale sCOGS
Net sales
B. *Net Profit margin(NPM)=Net income After taxes/Net Sales
4. Coverage Ratios
EBIT
A. *Interest Coverage ratio= Interest payments
5. Liquidity Ratios
A. *Current Ratio=(Current Assets)/(current liabilities)
B. *Acid-Test Ratio=(Current assets-Inventory)/Current liabilities)
C. *Net working capital= Current assets-Current Liabilties
6. Profitability Indicators
A. *ROA=Profit after tax/Total assets
B. *ROE=Profit after tax/Networth
C. *Profit Margin=Profit after tax/Total sales
7. Financial leverage
A. *Leverage ratio= Total Liabilties/Total assets
B. *Capitalization Ratio=Long-term debt/(Networth+Long-term Liabilities)
Projections or Pro-forma Statements:
i.
ii.
iii.
iv.
v.
vi.
Sunlights Net Sales are projected to increase to 10 percent, resulting in a
positive net income of $100,000.Sunlights assets are expected to climb to
$31.8 million from $28million.The cash account will be $ 3.5 million.
Receivables and inventory will be down by $0.4 million each.
Sunlight will purchase $4 million in new fixed assets, and its net Fixed assets
will expand by $1 million.. Depreciation of $3million. Miscellaneous assets of
$1.6 million will be added. Long-term Debt of $200,000 will be paid off.
Accounts payable will be increased by $0.1 million and notes payable will
increase by $1.1 million from existing lender. OtherLiabililities will increase by
$ 2.3 Million. Taxes payable will increase by $0.4 million
The firm is also expects a new lender to grant $5 million notes credit line
with which it will pay of its outstanding of $3.9 million and add to its assets
by $1.1 million.
Pls prepare the projected Balance sheet
Pls prepare the projected cash flows (operating, investing and financing cash
flows).
