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Tire City Case

The document provides financial statements for Tire City, Inc. for the years 1993 through 1996. It includes income statements showing sales, costs, expenses, income and dividends. It also includes balance sheets showing assets, liabilities, equity and totals. Key information includes steadily increasing sales and net income over the four years. Assets also increased each year, primarily in plant & equipment and current assets like accounts receivable. Liabilities grew from 1993 to 1996 as did retained earnings and total equity.

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Angela Thornton
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570 views12 pages

Tire City Case

The document provides financial statements for Tire City, Inc. for the years 1993 through 1996. It includes income statements showing sales, costs, expenses, income and dividends. It also includes balance sheets showing assets, liabilities, equity and totals. Key information includes steadily increasing sales and net income over the four years. Assets also increased each year, primarily in plant & equipment and current assets like accounts receivable. Liabilities grew from 1993 to 1996 as did retained earnings and total equity.

Uploaded by

Angela Thornton
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

INCOME STATEMENT
Net sales

16,230

20,355

23,505

28,206

Cost of sales

9,430

11,898

13,612

16,403

6,800

8,457

9,893

11,803

Selling, general, and administrative expenses

5,195

6,352

7,471

8,932

Depreciation

160

180

213

213

Net interest expense

119

106

94

112

Pre-tax income

1,326

1,819

2,115

2,545

Income taxes

546

822

925

1,104

780

997

1,190

1,442

155

200

240

289

Cash balances

508

609

706

858

Accounts receivable

2,545

3,095

3,652

4,365

Inventories

1,630

1,838

2,190

1,625

4,683

5,542

6,548

6,848

Gross plant & equipment

3,232

3,795

4,163

6,163

Accumulated depreciation

1,335

1,515

1,728

1,941

Net plant & equipment

1,897

2,280

2,435

4,222

Total assets

6,580

7,822

8,983

11,070

125

125

125

125

375

Gross Profit

Net income
Dividends

BALANCE SHEET
Assets

Total current assets

Liabilities and equity


Current maturities

Accounts payable

1,042

1,325

1,440

1,792

Accrued expenses

1,145

1,432

1,653

1,986

2,312

2,882

3,218

4,277

Long-term debt

1,000

875

750

625

Common stock

1,135

1,135

1,135

1,135

Retained earnings

Total current liabilities

2,133

2,930

3,880

5,033

Total shareholders' equity

3,268

4,065

5,015

6,168

Total liabilities and equity

6,580

7,822

8,983

11,070

1993

1997

1994

Profitability
$

33,847

Return on sales

4.81%

4.90%

19,684

Return on assets

11.85%

12.75%

14,163

Return on equity

23.87%

24.53%

10,718

333

173

2.025519031

1.92297016

2,939

1,275

1,665

333

Liquidity
Current ratio
Quick ratio

1.32050173 1.285218598

Leverage
Assets/equity

2.013463892 1.924231242

Total debt/total capital

0.503343465 0.480311941

Interest coverage

12.14285714 18.16037736

Activity

1,030

5,238

Total asset turnover

3,203

Days receivables

9,470

Days inventory

$
$

6,563

2,274

4,289

13,759

125

1,103

2,150

2,383

5,761

500

1,135

6,364

7,499

13,760

2.46656535 2.602275633
57.23505853 55.49864898
63.0911983 56.38510674

39.94919874

Days payable

Du Pont
ROA

0.118541033 0.127461007

ROE
ROE

0.23867809 0.24526445
0.23867809 0.24526445
$ 12,106

AVG
Cost of sales/Sales 0.5810228 0.58452469 0.57911083 0.58155277
SG&A/Sales
0.32008626 0.31206092 0.31784727 0.31666482
$

93

94

95

Income tax/Pretax0.41176471
income

0.45189665 0.43735225 0.4336712


Dividends/Net income
0.19871795 0.20060181 0.20168067 0.20033348
0.03130006 0.02991894 0.03003616 0.03041839
Receivables/Sales0.15680838 0.15205109
0.1553712 0.15474356
Cash/Sales

Inventories/Sales

0.1004313 0.09029722 0.09317167

0.0946334

0.06420209 0.06509457 0.06126356 0.06352008


Accrued exp/Sales0.07054837 0.07035127 0.07032546 0.07040836
Payables/Sales

1995

1996

1997

5.06%

5.11%

4.92%

13.25%

13.02%

12.10%

23.73%

23.37%

22.20%

2.034804226 1.601004427 1.643798273


1.354257303 1.221075308

1.08782685

1.791226321 1.794765873 1.834845272


0.441723255

0.44283391 0.455026928

23.5

23.63547 18.00824853

2.616609151 2.548041641 2.459948184


56.71048713 56.48139821 56.48139821
58.72392007 36.15893238 59.39476437
37.6396448

#DIV/0!

#DIV/0!

0.132472448 0.130224728 0.120977953

0.23728814
0.23728814
$ 13,964

0.2337229 0.22197583
0.2337229 0.22197583

For Years Ending 12/31

Assumptions

1996

INCOME STATEMENT
Net sales

28206

Cost of sales

16403.27745
Gross profit

S, G, & A

11802.72255
8931.847774

Depreciation

213

Net interest expense


Pre-tax income

112.4528
2545.42198

Income taxes

1103.876203
Net income

Dividends

1441.545777
288.7898756

BALANCE SHEET
Assets
Cash

857.9810422

Accounts receivable

4364.696762

Inventories

1625
Total current assets

6847.677804

Gross plant & equipment

6163

Accumulated Depreciation

1941

Net plant & equipment


Total assets

4222
11069.6778

Liabilities
Current maturities of LTD
New Bank Debt

125
374.528

Accounts payable

1791.647256

Accrued expenses

1985.938343

Total current liabilities


Long term debt (LTD)
Common stock

4277.113599
625
1135

Retained Earnings
Total equity
Total liabilities and equity

5032.755902
6167.755902
11069.8695

10695.3415
374.336304

NWC

4198.04951

1997

AVG
Cost of sales/Sales 0.5810228 0.58452469 0.57911083 0.58155277
SG&A/Sales
0.32008626 0.31206092 0.31784727 0.31666482
1993

33847
19683.81662

1994

1995

14163.18338
10718.154
333

Income tax/Pretax0.41176471
income

0.45189665 0.43735225 0.4336712


Dividends/Net income
0.19871795 0.20060181 0.20168067 0.20033348

172.81133

1664.563833

0.03130006 0.02991894 0.03003616 0.03041839


Receivables/Sales0.15680838 0.15205109
0.1553712 0.15474356
Inventories/Sales 0.1004313 0.09029722 0.09317167
0.0946334

333.4678578

Payables/Sales

2939.21805
1274.654217

Cash/Sales

0.06420209 0.06509457 0.06126356 0.06352008


Accrued exp/Sales0.07054837 0.07035127 0.07032546 0.07040836

1029.571167
5237.605165
3203.056576
9470.232909
6563
2274
4289
13759.23291

125
1103.1133
2149.964003
2383.111929
5761.189233
500
1135
6363.851877
7498.851877
13760.04111

400
2000
273.205382 1241.84265 1515.04803
68.3013455 310.460662 378.762007

12656.9278
1102.3051

6290.69774

28206
16403.2774
11802.7226
8931.84777
213
112.876201
2544.99858
1103.69259
1441.30599
288.741839

33847
19683.8166
14163.1834
10718.154
333
214.004803
2898.02458
1256.78979
1641.23478
328.794268

846.18
4364.69676
1625
6835.87676
6163
1941
4222
11057.8768

1015.41
5237.60517
3203.05658
9456.07174
6563
2274
4289
13745.0717

125
378.762007
1791.64726
1985.93834
4281.34761
625
1135
5032.56415
6167.56415
11073.9118

125
1515.04803
2149.964
2383.11193
6173.12396
500
1135
6345.00467
7480.00467
14153.1286

1993

1994

1995

1996

4.81%
11.85%
23.87%

4.90%
12.75%
24.53%

5.06%
13.25%
23.73%

5.11%
13.02%
23.37%

Profitability
Return on sales
Return on assets
Return on equity
Liquidity
Current ratio
Quick ratio

2.02551903 1.92297016 2.03480423 1.60100443


1.32050173 1.2852186 1.3542573 1.22107531

Assets/equity
Total debt/total capital
Interest coverage

2.01346389 1.92423124 1.79122632 1.79476587


0.50334347 0.48031194 0.44172326 0.44283391
12.1428571 18.1603774
23.5
23.63547

Total asset turnover


Days receivables
Days inventory
Days payablea

2.46656535 2.60227563 2.61660915 2.54804164


57.2350585 55.498649 56.7104871 56.4813982
63.0911983 56.3851067 58.7239201 36.1589324
39.9491987 37.6396448 #DIV/0!

Leverage

Activity

1997

4.92%
12.10%
22.20%

1.64379827
1.08782685

1.83484527
0.45502693
18.0082485

2.45994818
56.4813982
59.3947644
#DIV/0!

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