NEBCO - Year 1

Year 1
Income Statement (in thousands) Year 1 (actual) (actual)
Sales $3,100 Profitability
Cost of goods sold ($2,100) Revenue Growth n/a
Gross Profit $1,000 Gross Margin 32.3%
Selling, general and administrative ($700) Operating Margin 4.8%
Research and Development ($150) Profit Margin 1.5%
Operating income, or EBIT $150
Interest ($78) Asset Management
Earnings Before Taxes (EBT) $72 Inventory Turnover 6.0
Tax Expense ($25) Days in Inventory 61
Net Income $47 Acct. Rec. Turnover 6.9
Days in Receivables 53
Balance Sheet (in thousands) Year 1 (actual) Accts. Pay. Turnover 7.0
Assets Days in Payables 52
Cash $20 Cash Operating Cycle 62
Accounts Receivable $450 Asset Turnover 1.6
Inventory $350 Fixed Asset Turnover 2.9
Total Current Assets $820
PP&E, Gross $1,200 Return on Investment
Less: Accumulated Depreciation ($120) Profit Margin 1.5%
PP&E, Net $1,080 Asset Turnover 1.6
Other Assets $100 Return on Assets 2.3%
Total Assets $2,000 Financial Leverage 2.7
Liabilities Return on Equity 6.2%
Accounts Payable $300
Accrued Expenses $120 Liquidity and Leverage
Total Current Liabilities $420 Current ratio 1.95
Long term Debt $828 Quick ratio 1.12
Total Liabilities $1,248 Total Liablilities/Total SE 1.66
Stockholders' Equity Interest-bearing debt/Total SE 1.10
Common Stock $705 Interest-bearing debt/Invested Capit 52.4%
Retained Earnings $47 Times Interest Earned 1.9
Total Stockholders' Equity $752 Discretionary Cash Flow ($1,413)
Total Liabilities & Stockholders' Equity $2,000 Cash Conversion Ratio n/a

Statement of Cash Flows Year 1 (actual)

Operating Activities
Net Income $47
Plus: Depreciation expense $120
Accounts receivable, increase ($450)
Inventory, increase ($350)
Accounts payable, increase $300
Accrued expenses, increase $120
Net cash flow-operations ($213)

Investing Activities: Purchase of PP&E

Purchase of PP&E ($1,200)
Purchase of other assets ($100)
Net cash flow-investing ($1,300)

Financing Activities
Increase (decrease) Long-term debt $1,533
Net cash flow-financing $1,533
Net Increase (Decrease) in Cash $20
Beginning balance, Cash $0
Ending balance, Cash $20