2002 Financial Analysis

(Excel File)

7.28

TM

Financial Statements

Form 1. Financial Data From QuickBooks Pro

Name of Business:
Fiscal Year:

TTAP Enterprises
2002
Ending Date
12/31/02

Beginning Date
1/1/2002
TM

Financial Statement Data From QuickBooks Pro

Total Income

(a)

$352,998

Other Income

(b)

$18,779

Accrual Revenue Adjustments if not Made in Accounting Data ( Form 3)

(c)

$0

Total Gain (loss) - Livestock Disposed

(d)

$1,883

Cost of Goods Sold

(e)

$358,337

Total Operating Expense and Interest (Total Expense)

(f)

$340,364

Total Other Expense including Income Tax expense

(g)

($329,286)

Accrual Adjustments To Expenses if not Made in Accounting Data (Form 3)

(h)

$0

Income Tax Expense

(i)

$0

Interest Expense (Form 2)

(j)

$65,409

Accured Interest Expense (Form 3)

(k)

$0

(l)

$0

(m)

$0

Gain (loss) on Disposal of Capital Assets Other Than Breeding Livestock

Extraordinary Gain

Extraordinary Loss
(n)
$0
_______________________________________________________________________________________________
Income Statement Major Report Lines
Revenue
Sales (a+b-d-l-m)
Gain (loss) Breeding Livestock Disposed (d)
Accrual Revenue Adjustments if not Made in Accounting Data (c
Gross Revenue

$369,894
$1,883
$0
$371,777

Total Operating Expense Including Cost of Goods Sold (f+g+h+e-i-j-k-n

Operating Margin

$304,007
$67,770

Interest (j+k)
Net Farm/Ranch Income after Operation and Financing Cost

$65,409
$2,361

Gain (loss) from Disposal of Non-Breeding Stock Capital Assets (l

Net Farm/Ranch Income

$0
$2,361

Income Tax Expense (i)

Net after tax Income Before Extraordinary Items

$0
$2,361

Extraordinary Income or Expense (m+n)

$0
Net Income After Taxes and Extraordinary Items
$2,361
_______________________________________________________________________________________________
Beginning Date
1/1/2002

Balance Sheet Values For Farm or Ranch Business

Total Current Assets
Total Fixed Assets

Ending Date
12/31/2002

$336,862

(o)

$324,341

$2,224,871

(p)

$2,229,574

Total Assets (o+p)

$2,561,733 (q)

Total Current Liabilities

$64,044

(r)

$68,773

$1,082,480

(s)

$1,067,571

Total Long Term Liabilities

Total Liabilities (r+s)

$1,146,524

Equity (q-t)

$2,553,915

(t)

$1,136,344

$1,415,209 (w)

$1,417,570

Other Data Needed

Total Depreciation

$48,105

Agricultural Program Payments - Accrual Adjustments

$0

Agricultural Program Payments

$13,260

Total Agricultural Program Payments - Accural Adjusted

$13,260

Change in Equity Due to Valuation Equity

$0

Number of Full-time Operators and Hired Employees (FTE)

2.0
_______________________________________________________________________________________________

7.29

Form 2. Repayment Capacity Data and Business Debt Information

Name of Business:

TTAP Enterprises

Fiscal Year:

2002

Fiscal Year Values

Net Non-farm Income Available to Support Debt (Contributed Capital)

$0

Capital Contributions

$0

Capital Distributions

$0

Annual Payments on Personal Liabilities (If Not Included in Capital Distributions)

$0

Total Income Tax Expenses

$0

Interest
Interest (current loans)
Interest (non-current loans)
Interest on Capital Leases

Paid

Accural Interest

$2,401
$65,409
$0

Total
Interest Expense with Accrual Adjustment (Form 1)

$65,409

$0
$65,409

Total Interest on Term Debt and Capital Leases

$65,409

Scheduled Principal Payments on Term Debt (Beginning of Fiscal Year)

$14,044

Scheduled Principal Payments on Capital Leases (Beginning of Fiscal Year)

$0

Payment on Unpaid Operating Debt from Prior Period

$0

Total Depreciation

$48,105

Operating Margin

$67,770

10. Term Debt and Capital Lease Coverage Ratio

1.46 %

11. Capital Replacement and Term Debt Repayment Margin

7.30

$36,422

Table 1. Farm Financial Standards and Other Financial Performance Measures

Name of Business:

TTAP Enterprises
Fiscal Year

Select FFS Ratios and Percent Values

Liquidity
1. Current Ratio x:1
2. Working Capital
Solvency
3. Debt to Asset Ratio %
4. Equity to Asset Ratio %
5. Debt to Equity Ratio %

2002

Your
Business

Beginning
5.26
$272,818

Ending
4.72 :1
$255,567

44.76
55.24
81.01

44.49 %
55.51 %
80.16 %

Profitability
6. Return on Assets (ROA) %

2.65 %

7. Return on Equity (ROE) %

0.17 %

8. Operating Margin Ratio

18.23 %

9. Net Income From Operations - Pre Interest and Income Tax

$67,770

Repayment Capacity
10. Term Debt and Capital Lease Coverage Ratio

x:1

11. Capital Replacement and Term Debt Repayment Margin

1.46 :1
$36,422

Financial Efficiency
12. Asset Turnover Ratio

x:1

0.15 :1

Operating Ratios
13. Operating Expense Ratio

68.83 %

14. Depreciation Expense Ratio

12.94 %

15. Interest Expense Ratio

17.59 %

16. Net Income From Operation Ratio

0.64 %
____________________________________________________________________________________
Other Performance Values
Net Income After Tax and Extraordinary Items

$2,361

Change In Equity

$2,361

Leverage Situation Index (ROE/ROA)

0.06

Consumption and Savings Margin

Percent of Gross Revenue

$2,361
0.64 %

Operating Margin per Full-time Operator and Hired Employees

$67,770

Net Income per Full-time Operator and Hired Employees

$1,181
____________________________________________________________________________________

7.31

Table 2. Du Pont Equation and Financial Analysis Calculation

Name of Business:

TTAP Enterprises
Base
Value

Fiscal Year:

2002
Changed
Value

Measure

Formula

1.

Operating Margin Ratio

(F/B)*100

18.23 %

8.18 %

26.41 %

2.

Asset Turnover

(B/G)

0.145 x:1

-0.001 x:1

0.144 x:1

3.

Leverage Ratio

(1/H/G)

1.806

-0.009

1.797

4.

Interest Adjustment
(E/G)
0.026
0.000
0.025
--------------------------------------------------------------------------------------------------- --------------- -------------------- --------------- -------------------- --Du Pont Equation
ROA = ((F+D+E)/G)*100 or (1*2)*100
2.65 %
1.17 %
3.82 %

x:1

ROE = (ROA-4)*3)*100 or ((F-D)/H)*100

Change

0.17 %

2.12 %

2.29 %

Leverage Situation Index

(ROE/ROA)**
0.06
0.60
--------------------------------------------------------------------------------------------------- --------------- -------------------- --------------- -------------------- --Calculations of ROA:
Operating Margin Ratio *
Asset Turnover
=
ROA
%
18.23

0.15

2.65 %

With Change
26.41
0.14
=
3.82 %
--------------------------------------------------------------------------------------------------- --------------- -------------------- --------------- -------------------- --Calculations of ROE:
ROA - Int. Adj.
*
Leverage
*100
= ROE
%
0.026

0.026

1.81 *100

0.17 %

With Change
0.038
0.025
1.80 *100
2.29 %
--------------------------------------------------------------------------------------------------- --------------- -------------------- --------------- -------------------- --- -------------------Base
Percent
Changed
Dollar
Financial Statement Data (Form 1)
Value
Change
Values
Change
A

Agricultural Program Payments (Form 1)

Gross Revenue

$371,777

Total Operating Expenses

Interest Expense

Income Tax Expense

Operating Margin (B-C)**

$13,260

0.0

$13,260

$0

0.0 %

$371,777

$0

$304,007

-10.0 %

$273,606

$65,409

0.0 %

$65,409

$0

$0

0.0 %

$0

$0

$67,770

44.9 %

$98,171

$30,401

($30,401)

Beginning Assets

$2,561,733

$2,561,733

Ending Assets

$2,553,915

1.190 %

$2,584,315

$30,401

Average Assets

$2,557,824

0.594 %

$2,573,024

$15,200

Beginning Equity

$1,415,209

Ending Equity

$1,417,570

$1,415,209
2.145 %

$1,447,971

$30,401

Average Equity
$1,416,390
1.073 %
$1,431,590
$15,200
--------------------------------------------------------------------------------------------------- --------------- -------------------- --------------- -------------------- --- -------------------*If net operating income is positive and the leverage situation is greater than 1 then the cost debt is less than earnings and debt is beneficial.
If less than one it means returns on debt are less than cost and added debt is not beneficial.
**Change in Agricultural Program Payments and Crop Insurance proceeds will change this value.

7.32

Balance Sheet Values

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Total Assets

Total Liabilities

Owner's Equity

Beginning Year
Ending Year

Solvency Ratios

90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

Solvency

Debt to Asset Ratio

44.49

Equity to Asset Ratio

55.51

Debt to Equity Ratio

80.16

Return on Assets and Return on Equity

3.00
2.50
2.00
1.50
1.00
0.50
0.00

Profitability

ROA %

2.65

ROE %

0.17

Operating Ratios
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Ratio Percentages

Operating Expense

68.83%

Depreciation Expense

12.94%

Interest Expense

17.59%

Net Income

0.64%

7.33